Mortgage Update July 31 2015

“Mortgage Bonds continue to push higher receiving support from tame inflation data, lower Stock and Oil prices along with mixed economic numbers.
I will continue to recommend carefully floating as Mortgage Bond prices have hit key short term technical resistance levels, due to the fact that in this volatile environment, sentiment can quickly reverse. If anything changes, I will get back to you. Have a great weekend!”

Mortgage Update July 30 2015

“Mortgage Bonds are near unchanged, Stocks lower, following yesterday’s Fed statement, which left investors scratching their heads as to the timing of the first interest rate hike. The government reported that the first reading on 2nd quarter Gross Domestic Product (GDP) rose by 2.3%, well above the 0.6% recorded in the 1st quarter. I will continue to recommend carefully floating as Bond prices are stalling at current levels. If anything changes, I will get back to you.”

Mortgage Update July 29 2015

“The Fed’s monetary policy statement will be released at 2:00pm ET and where there is no chance of a rate hike at this meeting, the talks will center on whether or not the U.S. economy is ready for interest rate hikes in the near future. June Pending Home Sales will be released at 10am. At 1:00pm, the results from today’s $35B 5-Year Note will be released. This could shake things up before the Fed hits the wires. I am recommending floating headed into the Fed meeting, but sentiment can quickly reverse after the statement is released. If anything changes, I will get back to you.”

Mortgage Update July 28 2015

“Mortgage Bonds are lower, but well above their opening levels after weaker than expected economic data from the Case Shiller 20-city Home Price Index and Consumer Confidence hit the wires. The two-day Federal Reserve meeting will kick off today with the monetary policy statement being released at 2:00 p.m. ET on Wednesday. I will continue to recommend carefully floating headed into tomorrow’s Fed statement. However, Mortgage Bonds are near the short term highs and could be ripe for a reversal lower. If anything changes, I will get back to you.”

Mortgage Update July 27 2015

“A big rout in China’s Shanghai Stock Composite overnight is causing global equities to plunge, while pushing investors into the safe haven of the Bond markets. The two-day Fed meeting kicks off tomorrow and will end with the monetary policy statement at 2:00pm ET on Wednesday. There is no chance of a Fed Funds Rate hike, but will be most likely be centered on when the first hike will take place. I will continue to recommend floating into the Fed statement if the market allows us. I will be on guard for any sudden reversals. Have a great week!”

Mortgage Update July 24 2015

“Mortgage Bonds are near unchanged this morning after having risen eight of the last nine trading days. In housing news, June New Home Sales unexpectedly declined, coming in at the lowest levels for 2015. I will continue to recommend floating, but I grow ever so cautious as prices are at the top of the short term trading range. If anything changes, I will get back to you. Have a great weekend.”

Mortgage Update July 23 2015

“Mortgage Bonds are near unchanged as prices battle key technical overhead levels. The Labor Department reported that Weekly Initial Jobless Claims fell to a 42-year low, and have been running below the 300,000 mark since late February, the longest such streak in 15 years. I will continue to recommend carefully floating, but prices seem to be topping out. If anything changes, I will get back to you.”

Mortgage Update July 22 2015

“Mortgage Bonds are slightly higher trading in a tight range this morning. A solid report from June Existing Home Sales is weighing on Bonds, while receiving support from lower Stock prices. I will continue to recommend floating, but I grow ever so cautious as Mortgage Bond prices are at the upper end of the recent trading range. If anything changes, I will quickly alert you.”

Mortgage Update July 21 2015

“Mortgage Bonds continue their sideways pattern ahead of next week’s Fed meeting. There are no economic reports being released today and the rest of the week’s calendar is light. The Bond markets are receiving support from lower Stock prices after a round of mixed earnings reports hit the wires.
I will continue to recommend carefully floating, but after the recent rally for Mortgage Bonds and with prices seemingly stalling at current levels, sentiment can quickly reverse lower. If anything changes, I will get back to you.”

Mortgage Update July 20 2015

“After last week’s push higher, Mortgage Bonds are starting this week to the downside as the Greek saga diminishes, for now. The economic calendar is extremely light with just Existing Home Sales, Weekly Initial Jobless Claims and New Home Sales being reported later in the week. I will continue to recommend floating, but I grow ever so cautious as prices seem to be stalling at current levels, which could signal a reversal lower. Have a great week!”