Mortgage Rates Show Little Reaction to the "No Vote"

Mortgage rates has been an interesting read since last week’s FOMC meeting, and how the mortgage bonds which drive these rates positioned themselves through the week considering the vote (that was to take place) in regards to the new healthcare plan. With very little push throughout the day, mortgage rates were unchanged on average today. 

The essential point of all this political drama is that it is not about healthcare!  It's about investor confidence in the Trump administration's other policy promises.  President Trump was tired of all the “politics” that was going on back and forth, that he wanted a vote today so other plans on the agenda can move forward.

At 2:35PM, Paul Ryan pulled the bill -  no vote. It has been interesting to see all the reports on how President Trump has failed, and what this means for his future and the agenda that he has laid out to put together. There was even a comparison on what Hillary had done in 1995 and how this compares to what has happened here more than twenty years later.

Because of the timing and trying to put together on which way the markets would bend, the DJIA which was down 100 points at the time of the announcement rallied and closed just short of even, and there was very little change in the MBSs and the 10yr, which were flat the last two days, and is at 2.41%

This weekend’s news shows will have a lot to digest. Politics on the front burner with little in the way of intelligent handicapping - just guesses now about what will occur next week in the financial markets. Basically, I am going to stand on the sidelines and formulate a strategy on what would be best for my clients.  Right now, if you have not locked, let’s see what Monday brings and decide then.