There’s not much to report this week by way of economic news. Interest rates globally remain at historical lows with the German 10-year bund nearly approaching zero earlier this week. Here in the U.S., interest rates remain very attractive.
On Thursday, Fed Chair Janet Yellen expressed her belief that the U.S. economy remains on solid ground and that the Fed may raise short-term interest rates later this year. Technically, mortgage bonds are near the 52-week highs and the 10-year Treasury Bond continues to trade well with a current yield of 1.71%. Though it’s possible interest rates could decline further, we are biased toward locking in interest rates at these levels.