Mortgage Rates Showing Little Movement

Mortgage rates remained in a very narrow range, but still at their highest levels in the last three months. There was much volatility in the stock market today, where at one point the DJIA was down 166, but recovered by the end of the day.  The mortgage bonds had very little reaction to the markets today.

A lot of talk amongst various political leaders and Fed Presidents today, but nothing worth mentioning as all of them were grasping for media attention, but it all comes down to what Janet Yellen should say tomorrow.

The Treasury sold $24B of 3yr notes, and compared to the last 12 auctions, this was the best one yet.  Tomorrow we get the 10yr, which will be garnishing much attention when that news is released. Weekly MBA mortgage applications in the morning. Weekly crude oil inventories at 10:30 and tomorrow afternoon the Fed will release its Beige Book, Fed staff details from the 12 Fed districts.

In summary, headlines are helping bonds extend yesterday's gains.   You really do not want to float with Yellen likely to keep the hawkish tone about more rate increases and reducing the Fed’s balance sheet.