Should be an interesting week with a lot of data coming out but my advice is to not panic and see what the story tells as it all unfolds.
As of now there is a majority of believers in a December Fed rate hike, so that is already priced into the market. If it actually happens it will be small and will not affect mortgage rates but if data tells a different story and it does not happen (as I believe) then we should see a nice rebound to the recent hits to rates and pricing.
Anyway, only time will tell but I think the safe bet is to float right now.
The FNMA 3.0 coupon is currently sitting right at 100
Here is today's data...
We have a wide range of data coming out this week covering Manufacturing, Inflation, and Housing. Today we get Empire Manufacturing, tomorrow the Consumer Price Index and NAMB Housing Index, followed by Housing Starts/Building Permits on Wednesday. Empire Manufacturing for November was down -10.74 (consensus -5.25) following a drop of 11.36 prior. On Wednesday the FOMC releases the minutes from their October meeting which may reveal clues as to the likelihood of a 2015 rate hike.