Mortgage Rates Trending Sideways This Morning

Mortgage rates are trending sideways this morning.  Still a bit disappointed that we never did any follow-thru on the rate movement, but at least we have held a bit of what was gained last week.  What started all this was the media and what was being reported on the issues that seem to surround the election of President Trump.  Media still have their knives honed and willing apparently to report anything that may be a potential smoking gun.

In addition to the many "twists and turns" over Comey-gate, we will also see more details of the President's budget proposal and lots of headlines from his trip overseas. These will continue to be the main driving force in MBS pricing.

The bond market no longer has two more rate hikes plus a tapering in the place. In other words, they do not believe the Fed. This week, we will get the Minutes from the last FOMC Meeting and a slew of speeches, and I can only imagine what the rhetoric will be forthcoming from them.

OPEC will hold their meeting on Thursday. The key is if they extend the timeline (expiration date) of the current production freezes and/or increase the production cuts. Their action (or inaction) will have a significant impact on global oil prices, and MBS will react to any inflationary impact.

And again, we have the Treasury auctions this week of the 2yr, 5yr, and the important 10yr.

Mortgage rates today will likely move sideways with average to low volatility. However, this week we could once again see high volatility due to technical, fundamental, and geopolitical issues noted above. This week precedes Memorial Day holiday next Monday with markets closed; trading activity may tail off later this week as many will be leaving Thursday and Friday - no notice yet on whether the bond and mortgage markets will close early Friday.