Good Morning,
I hope that this note finds you well and that your Tuesday is off to a fabulous start!
In the markets today, Mortgage Bonds are trading slightly higher, after big losses yesterday due to added supply in the markets. Where is that supply coming from, you might ask? Simple. Those refinances you've heard about lately that have now closed are actually turned into Mortgage Backed Securities after they have closed, which adds more Bonds to the market overall.
Although the Fed has a program to purchase some of these Mortgage Bonds, the number of new Bonds simply outweighs what the Fed is able to buy. Still, the Fed's program is helping slow down the rate increases we are seeing.
Currently, Mortgage Bonds are in a fairly good position. So I recommend floating to see if prices can improve a little more, but be prepared to lock if the situation changes. And certainly feel free to contact me if you have any questions about your financial situation and today's market overall.
In the meantime, I hope you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.
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