Mortgage Update May 31 2016

“Mortgage Bonds are near unchanged after a plethora of economic data hit the wires this morning.

Core inflation remained tame; Consumer Confidence fell, while home price gains remained steady.

With Mortgage Bond prices remaining above a key support level, I will continue to recommend carefully floating. If prices break below this key technical level, I will quickly switch to locking.

Have a great week!”

 

Mortgage Update May 27 2016

“Lackluster trading with low volumes will be the tone in today’s session as traders and investors escape early to get a jump on the long holiday weekend.

In economic news, economic growth, as measured by Gross Domestic Product, remained sluggish in the first quarter of 2016, while Consumer Sentiment edged lower in May.

I will continue to recommend carefully floating, but be advised that mortgage rates in May averaged the lowest in three years, and may not get much better from current levels.

Enjoy the long weekend!”

 

Mortgage Update May 26 2016

“Despite better-than-expected economic data, Mortgage Bonds are modestly higher this morning and remain above a key technical support level.

Weekly Initial Jobless Claims fell in the latest week, while April Durable Orders came in much better-than-expected.

I will continue to recommend carefully floating, as long as Mortgage Bond prices remain above that key technical level.

If anything changes, I will get back to you.”

 

Mortgage Update May 25 2016

“Mortgage Bond prices are near unchanged trading in a sideways pattern, just above support at the 100-day Moving Average.

There are no economic reports due for release today. The Treasury will be selling a boatload of 5-year T Notes and the results could impact the Bond markets.

I will continue to recommend carefully floating, as long as Mortgage Bonds can remain above key technical support levels.

If anything changes, I will get back to you.”

 

Mortgage Update May 24 2016

“Mortgage Bond prices are edging lower this morning as Stocks enjoy a strong opening.

In housing news, April New Home Sales surged nearly 17% from March to the highest level since January 2008.

I will continue to recommend carefully floating, but I grow ever so cautious at current levels. If anything changes, I will get back to you.”

 

Mortgage Update May 23 2016

“Mortgage Bonds are edging higher near resistance after bouncing off support at the 100-day Moving Average last Thursday.  There were no economic reports released today.  Stock prices are being weighed down by the specter of interest rates rising sooner, rather than later. I will continue to recommend carefully floating, if anything changes, I will get back to you.  Have a great week!”

 

Mortgage Update May 20 2016

“Mortgage Bonds are near unchanged to finish what was a volatile Fed fueled week.  In housing news, April Existing Home Sales rose 1.7% from March as the sector continues to be a bright spot in the U.S. economy. With Mortgage Bond prices trying to stabilize and given the recent steep decline, I am recommending carefully floating. If anything changes, I will get right back to you. Have a great weekend!”

 

Mortgage Update May 19 2016

“After several days of rough sailing and pricing losses, Mortgage Bonds are attempting to stabilize at current levels.  Yesterday’s rather hawkish Fed minutes sent Bond prices lower, yields higher, while leaving the closely watched S&P 500 near unchanged.  In economic news, Weekly Initial Jobless Claims declined, while the Philadelphia Fed Index was worse-than-expected.  I am recommending carefully floating as Mortgage Bond prices attempt to stabilize. If anything changes, I will get right back to you.”

Mortgage Update May 18 2016

“Mortgage Bonds are edging lower this morning after the recent slide and ahead of this afternoon’s release of the April Fed minutes.   There were no major economic reports released this morning.  The benchmark 30-year 3% Fannie Mae coupon has now fallen below two key support levels. At the same time, the 10-year T Note yield is edging higher. In addition, mortgage rates are still near the three-year lows.  Given these dynamics, I feel that locking is prudent. If you have a timeframe of more than three weeks out, you can consider floating, but be careful.”

Mortgage Update May 17 2016

“After being unable to climb above stiff resistance in the past week, Mortgage Bonds have drifted a bit lower and are near unchanged this morning. In economic news, hotter-than-expected consumer inflation data today coupled with a positive housing report is weighing on Mortgage Bond prices. With Mortgage Bond prices at lofty levels and mortgage rates at three year lows, I will continue to recommend locking. If anything changes, I will get back to you.”