Market Commentary – 10/9/15

This week was light on economic reports. While last week’s job report was a boon to bonds and provided a lot of commentary on whether the Fed would raise short term interest rates, this week’s release of the Fed’s minutes, which were dovish in nature, sent stocks on a bit of a run at the expense of bonds. The Fed minutes verified policy makers concerns about a global economic slow-down, as well as their indecision about raising short term interest rates. Where we go from here is anyone’s guess, but a 2015 rise in short-term interest rates seems to be off the table for now.

Mortgage rates feel a bit stuck at the moment, but each week can bring new surprises. However, with mortgage bonds near various support levels, we are biased toward locking in rates.