Mortgage Update September 30 2016

“Mortgage Bonds are edging lower this morning as Stocks rebound after yesterday’s plunge.

In economic news, inflation remained tame in August, while Personal Spending fell from July to August. Positive data from the Chicago PMI and Consumer Sentiment are also weighing on Bond prices.

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

Mortgage Update September 29 2016

“Mortgage Bonds continue to drift lower after yesterday’s surprise OPEC announcement, where a deal may be struck to cut oil production.

The news quickly shocked the markets with oil prices and Stocks reversing sharply higher, at the expense of Bonds.

In economic news, the final reading for second quarter Gross Domestic Product rose to a dismal 1.4%, compared to 2.6% in the comparable quarter in 2015.

I am recommending locking, as Mortgage Bond prices appear to be on shaky ground and could head lower from current levels.”

Mortgage Update September 28 2016

“Mortgage Bonds are near unchanged and appear to be stalling at multi-year highs.

Fed Chair Yellen will be on Capitol Hill at 10:00 a.m. ET in front of the House Financial Services Committee at its semi-annual hearing on the Fed’s supervision and regulation of the financial system. There could be some market-moving sound bites from this testimony.

With Mortgage Bonds at multi-year highs and mortgage rates just above all-time lows, I am recommending locking in the short-term, two to three weeks out. If anything changes, I will get back to you.”

Mortgage Update September 27 2016

“Mortgage Bonds are near unchanged, off their best levels, after a much better-than-expected Consumer Confidence report.

In the housing sector, the July Case/Shiller 20-city Home Price Index showed steady price gains across the nation.

With Mortgage Bond prices at multi-year highs, I grow ever so cautious at current levels. As history shows us, prices could be ripe for a reversal lower.

If anything changes, I will quickly alert you.”

Mortgage Update September 26 2016

“Mortgage Bonds begin the week higher, being supported by lower Stocks around the globe, including here at home.

In economic news, August New Home Sales fell from July, but were able to beat expectations.

I will continue to recommend floating, but I grow ever so cautious with Mortgage Bond prices at multi-year highs, which could lead to a reversal lower.

If anything changes, I will quickly alert you. Have a great week!”

Mortgage Update September 23 2016

“After a nice three-day rally, Mortgage Bonds are near unchanged and are starting to show early reversal signals lower.

There were no economic reports scheduled for release today nor were there any glaring geo-political headlines to influence trading.

I am recommending carefully floating, but I grow ever so cautious with Mortgage Bond near the 2016 highs.

If anything changes, I will quickly alert you. Have a great weekend!”

Mortgage Update September 22 2016

“Stocks and Bonds are higher this morning following through from yesterday’s post-Fed announcement where interest rates remained at current levels.

The Fed did leave the door open for a rate hike this year, which would most likely take place in December.

I will continue to recommend floating, but more cautiously as Mortgage Bond prices approach the upper end of the trading range.

If anything changes, I will quickly alert you.”

Mortgage Update September 21 2016

“It’s Fed Day! The Fed’s monetary policy statement will be released at 2:00 p.m. ET with a press conference by Fed Chair Yellen immediately following at 2:30.

The consensus points to a “hawkish hold” where the Fed will maintain the short-term Fed Funds Rate at the 0.375% level, but may state that rates will rise in December.

Ahead of the Fed statement, I am recommending carefully floating. If anything changes later this afternoon, I will quickly alert you.”

Mortgage Update September 20 2016

“Mortgage Bonds are flat to modestly higher as the FOMC and BOJ meetings get underway.

In housing news, August Housing Starts declined from July and were lower than expected, while Building Permits also fell from last month and missed expectations.

I will continue to recommend carefully floating headed into the Fed’s monetary policy statement, which is expected to be released on Wednesday at 2:00 p.m. ET.

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

Mortgage Update September 19 2016

“Mortgage Bonds begin the week near unchanged as the markets gear up for the two-day Fed meeting beginning Tuesday and ends with the 2:00 p.m. ET release of the monetary policy statement on Wednesday.

In housing news, the September NAHB Housing Market Index was reported better-than-expected as the sector continues to be a bright spot in a somewhat slowing economy.

I will continue to recommend carefully floating headed into the Fed statement if the market allows us. If anything changes, I will get back to you.

Have a great week!”