Mortgage Update July 29 2016

“Mortgage Bonds are getting a boost after the government reported weak economic growth in the second quarter of 2016.

In addition, a decline in Stocks are also supporting higher Bond prices and lower yields.

I will continue to recommend carefully floating as we once again approach the lowest mortgage rates on record.

If anything changes, I will get back to you. Have a great weekend!”

Mortgage Update July 28 2016

“Mortgage Bonds are near unchanged after yesterday’s Fed-induced rally.

Stocks are lower as investors assess the Fed statement and future interest rate policy. A raft of mediocre earnings reports are weighing on Stocks this morning.

With Mortgage Bonds back near key technical support levels, I will continue to recommend carefully floating. If anything changes, I will get back to you.”

Mortgage Update July 27 2016

“Mortgage Bonds are flat to slightly higher ahead of the 2:00 p.m. ET release of the Fed’s monetary policy statement where it is expected that the short term Fed Funds Rate will remain steady at .375%.

Economic news takes a back seat to the Fed statement. Both Durable Orders and Pending Home Sales came in lower-than-expected.

Ahead of the release of the Fed statement, I am recommending carefully floating. If anything changes at 2:00 p.m. ET, I will get back to you.”

Mortgage Update July 26 2016

“Mortgage Bonds are flat with Stocks near unchanged after a mixed bag of earnings.

In housing news, June New Home Sales were better-than-expected, while home prices eased a bit in the Case-Shiller 20-city Index on an annual basis.

I will continue to recommend carefully floating, but I grow ever so cautious as Mortgage Bond prices have been unable to recoup some of the recent losses.

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

Mortgage Update July 28 2016

“Mortgage Bonds open near unchanged following the same sideways pattern that developed on July 14.

The financial markets get set for a big week of events that includes a packed economic calendar with data on U.S. economic growth, housing, manufacturing and consumer attitudes, along with the two-day Fed meeting.

I will continue to recommend carefully floating into the Fed meeting as long as Mortgage Bonds can remain above key technical support levels.

If anything changes, I will get back to you. Have a great week!”

Mortgage Update July 22 2016

“More of the same action this morning, as Mortgage Bonds continue to trade in a sideways pattern near support.

There were no economic reports due for release today nor were there any market moving events.

I will continue to recommend carefully floating, as long as Mortgage Bond prices can remain above key technical levels. If anything changes, I will get back to you.

Have a great weekend!”

Mortgage Update July 21 2016

“Mortgage Bonds are edging lower this morning, while Stock prices are also seeing modest losses.

Multi-decade lows in Weekly Initial Jobless Claims and weaker-than-expected manufacturing data from the Philadelphia Fed Index had little impact on the markets.

I will continue to recommend carefully floating, but I grow ever more cautious as the benchmark Fannie Mae 30-year 3% coupon has slipped below a key technical support level.

I will be closely watching today’s action. If there are any changes, I will get back to you.”

Mortgage Update July 20 2016

“Mortgage Bonds continue to show resilience as they trade in a sideways pattern the past five days, while at the same time, the S&P and the Dow have hit record highs.

There are no economic reports due for release today.

I will continue to recommend carefully floating as long as Mortgage Bond prices can remain above key technical levels.

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

Mortgage Update July 19 2016

“Mortgage Bonds are modestly higher trying to stabilize after their recent decline.

Prices are being supported this morning by a decline in U.S. Stocks following global markets lower on weak German business data due to concerns over the Brexit vote.

In housing news, June Housing Starts rose more than expected, while the May numbers were revised lower.

I will continue to recommend carefully floating as long as Mortgage Bond prices can remain above key support levels.

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

Mortgage Update July 18 2016

“Mortgage Bonds begin the week near unchanged after losing ground to rising Stocks last week.

In housing news, the NAHB Housing Market Index edged lower, but still remains well into positive territory.

I am recommending carefully floating, but the volatility remains. If anything changes, I will get back to you.

Have a great week!”