With yet another week of volatility, Mortgage Bonds are trying to stabilize above the 50-day Moving Average. Giving Bonds a boost was China reporting their lowest growth in three years and worse than expected quarterly earnings from J.P. Morgan Chase.
Bonds also were helped with news of tame inflation as the Consumer Price Index (CPI) report was in line with estimates. This mornings 3.50% coupon is currently at $103.38.
I am recommending floating, not locking interest rates at this time. But be prepared to lock, as any positive economic news can move rates higher.
Economic News
Initial jobless claims increased 13,000 to 380,000 for the week ending April 7. This is the highest level since January, and the second highest for 2012.