Mortgage Update February 29 2016

“Mortgage Bonds begin the week slightly higher in this final day of the trading month. Stocks are lower after weak readings from both the Chicago PMI and the January Pending Home Sales report. I will continue to recommend carefully floating as long as Mortgage Bonds can remain above key technical levels. If anything changes, I will get back to you. Have a great week.”

Mortgage Update February 26 2016

“Higher Stock and Oil prices and better than expected GDP are weighing on the Bond markets so far this morning. In economic news, Gross Domestic Product edged higher in Q4 2015, better than the initial reading that was reported. Consumer Sentiment also came in better than expected.
Mortgage Bond prices are being supported by a key technical level today. As long as that level can hold, I will continue to recommend carefully floating. If anything changes, I will get back to you. Have a great weekend!”

Mortgage Update February 25 2016

“Despite a strong Durable Orders report, Mortgage Bonds are modestly higher and remain above a sturdy layer of support so far this morning.
Later this afternoon, the Treasury will be selling a boatload of 7-year T Notes and the results could impact trading. I will continue to recommend carefully floating as long as Mortgage Bond prices can remain above that key level of support. If anything changes, I will get back to you.”

Mortgage Update February 24 2016

“Lower Stock prices are boosting Mortgage Bonds, but the big gains are seen in the Treasury markets. In economic news, New Home Sales declined in January from December, while sales are down year-over-year. I will continue to recommend carefully floating. If anything changes, I will get back to you.”

Mortgage Update February 23 2016

“Mortgage Bond prices are modestly lower this morning, while both oil and Stock prices are also lower. In housing news, home prices rose year-over-year in the month of December, while January Existing Home Sales were marginally higher. With Mortgage Bond prices trading above key technical support levels, I will continue to recommend carefully floating. If anything changes, I will get back to you.”

Mortgage Update February 22 2016

“Mortgage Bonds begin the week near unchanged and remain in a sideways pattern, just above support. There are no economic reports due for release today, but the rest of the week’s calendar will offer reports that will cover a large portion of the U.S. economy. I will continue to recommend carefully floating as long as Mortgage Bonds can remain above key technical levels. If anything changes, I will get back to you. Have a great week!”

Mortgage Update February 19 2016

“Thanks to lower Stock prices, Mortgage Bonds are shrugging off hotter than expected Core Consumer Inflation so far this morning. The Federal Reserve will be closely watching the various inflation gauges in the coming months in their quest to get interest rates back to more normal levels.
I will continue to recommend carefully floating. If anything changes I will get back to you. Have a great weekend!”

Mortgage Update February 18 2016

“Mortgage Bonds are near unchanged after the recent steep decline, while Stocks churn near the flat line. In economic news, the Philly Fed Index showed contraction as the manufacturing sector continues to go through a malaise. Weekly Initial Jobless Claims came in lower than expected. With the recent steep drop in Mortgage Bonds, I am recommending carefully floating. If anything changes, I will get back to you.”

Mortgage Update February 17 2016

“After hitting the best levels in nearly a year last Thursday, Mortgage Bonds continue to drift lower. In economic news, weak housing data was offset by a rise in core wholesale inflation. With Mortgage Bonds on the decline, I will continue to recommend locking. If anything changes, I will get back to you.”

Mortgage Update February 16 2016

“After hitting the highs seen last May, Mortgage Bonds are lower, but are fighting to stay above nearby support and avoid stepping lower. Earlier this morning, prices were nearly 100bp off of last Thursday’s highs. In economic news, the February Empire State Manufacturing Index and the February NAHB Housing Market Index both came in below expectations. With Mortgage Bond prices drifting lower, I will continue to recommend locking. If anything changes, I will get back to you. Have a great week!”