The mortgage bond market lost some momentum going into this past weekend. The bulls and the bears are battling at a key support / resistance level. It is interesting to watch the bond market in real time put up a fight when it approaches these levels. On Friday morning it looked like the bears where going to win, then the bulls rallied back. The bulls lost that in the late afternoon and bonds closed right on that level of resistance. Days like that show us that even the experts on Wall Street are split down the line.
That being said this week could sure up some things in the mortgage bond market so we can advise our clients with some level of certainty what rates are going to be doing in the short term.
On Tuesday the PPI is to be released, hotter number expected as worries of inflation continue. The big release with be on Wednesday at 2pm EST when the Federal Open Market Committee (FOMC) releases their minutes from the last meetings. How worried are they about inflation will come to light.
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