Good Morning on this best day of the week Wednesday,
Bonds are fairly flat this morning, although the news was bond friendly, with Durable Orders missing by a long shot. Durable orders were actually NEGATIVE his month, coming in at minus .09%. Bonds have moved firmly off what now seems to have been a bottom. I am still focused on the 10-yr technical to offer direction. Right now the 10-yr is at 1.64%, we need to close below 1.62%, then 1.59% to hit our third line of resistance of 1.50%. Although it feels like it’s been a straight line up and for the most part it has been, I do not expect it to be a straight line down. I would not recommend floating/waiting for lower rates, as lower rates will happen over the medium term, not necessarily the short term, unless the 10-yr trades below the aforementioned resistance. We have improved more than .125% in rates from last week. It is time to consider locking a good portion of your loans.
Please remain safe and healthy, make today great.