Market and Rates Range Bound

Today the Mortgage Backed Securities market is still range bound, albeit with some serious volatility. Although rates are holding for the time being this volatility suggests future movement and a breakout in the near future.

Considering the news we have to look forward to in the coming week it's likely that the breakout will occur sometime in the next five days. Here is a brief sample of what we have to look forward to:

FOMC meeting (only one day instead of their typical two day meetings), housing stats, industrial production numbers, and the release of the treasury debt supply terms for the 2, 5 and 7 year. In addition along with health care, financial reform will be a hot topic on the lips of politicians this week which could sway our markets.

If you are currently approved with a lender and floating your interest rate, I would keep a steady eye on rates this week. Be prepared to lock if needs be.... remember a bird in the hand.