Another extremely volatile week in the mortgage bond markets, with large intraday swings. The whipsaw action driven in large part by stocks, and their reaction to the Fed cutting 50 bps from both the Federal Funds rate and the Discount Rate. On balance, most mortgage rates finished the week higher by roughly .125%.
Stock driven volatility seems to be the theme, so expect more of it as a number of high profile earning reports hit the streets. The economic calendar contains mostly second tier data, but don’t rule out shot-from-the-dark negativity in the financials/homebuilders/insurers as possible market movers.
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