Mortgage Rates Mixed Today

Mortgage rates were mixed today, but was a bit lower overall.  The DJIA down 104 points at one point today but clawed back to close not much unchanged from yesterday. Not much can be added to this, as stocks continue to resist sustained selling as investors appear to want to ride out any possible corrections that have not yet occurred. As long as money flows into equities and there are very little other options left to increase wealth, the bond and mortgage markets simply are not going to improve.  One caveat though, any geo-political fear issues that have risen from time to time, even the NK situation is no longer causing concern that is manifested in markets.

All of the above meant a stronger start for bond markets and slightly lower mortgage rates this morning.  Still, the average improvement was so small that it was barely noticeable.  Most adjustments have come in the form of slightly higher/lower closing costs over the past few weeks.

Trump met with Yellen today as the last of his five interviews to appoint a Fed Chair next February. The others consist of his chief economic adviser, Gary Cohn, along with former Fed Governor Kevin Warsh, Fed Governor Jerome Powell and Stanford University economist John Taylor. A couple of very right wing Republicans want a new Fed chief but all they can do is protest, they have no voice in who the President selects, it is the Senate’s job to confirm. Yellen has done a great job under the circumstances but not likely to be-reappointed, if for no other reason that Trump has vowed to make changes.

Today is the 30th anniversary of the 1987 stock market crash, where the DJIA lost 24% of its value. At today’s level that would be a drop of 5,300 points. Not going to happen any time soon, but the arguments against the possibility, although different today, smack of the same kind of thinking that cracked the egg then.

In summary, bond markets opened slightly higher today, before regressing throughout the day to end near unchanged. It is tough to get excited about a rally whose duration lasts hours, not days.  While breaking even beats losing, I am still in lock early mode.