Mortgage Update October 31 2016

“Mortgage Bonds begin the big headline news week near unchanged and above key technical support levels.

In economic news, October Personal Income & Spending were near in line, while inflation remained on the tame side.

The big events this week will be Wednesday’s FOMC statement and Friday’s Jobs Report for October.

I will continue to recommend carefully floating ahead of those two key events, but that could change as the week progresses.

Have a great week!”

Mortgage Update October 28 2016

“After mixed data from third quarter Gross Domestic Product (GDP), Mortgage Bonds have bounced off session lows and traded above a key support level.

GDP in the third quarter rose more than expected and well above the weak readings from the first and second quarters. However, the consumer spending gauge saw a big decline.

With Mortgage Bonds once again above support levels, I will continue to recommend carefully floating. If anything changes, I will get back to you.

Have a great weekend!”

Mortgage Update October 27 2016

“Higher global Bond yields are pushing Mortgage Bond prices lower in today’s session.

The thought of higher interest rates are also causing the major Stock indices to decline.

The markets await this week’s big economic report tomorrow when the first reading on third quarter Gross Domestic Product is released after anemic readings in the first quarters of 2016.

Carefully floating is recommended, but sentiment can quickly reverse for the worse. If anything changes, I will quickly alert you.”

Mortgage Update October 26 2016

“Mortgage Bonds continue in their sideways pattern this morning, though slightly lower in early trading.

Stocks are lower being dragged down by disappointing quarterly earnings results from Apple.

At 10:00 a.m. ET, September New Home Sales will be released.

I am recommending carefully floating, but with prices unable to advance from current levels; a reversal lower could take place.

If anything changes, I will quickly alert you.”

Mortgage Update October 25 2016

“Mortgage Bonds are near unchanged to start the day, receiving support from lower Stock prices.

In housing news, home price gains remained steady, while Consumer Confidence in October fell from September.

I will continue to recommend carefully floating, but I grow ever so cautious with prices stalling at current levels.

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

Mortgage Update October 24 2016

“Mortgage Bonds begin the new week near unchanged as the sideways-to-slightly-higher pattern continues.

There are no economic reports due for release today.

The Justice Department is expected to sue ratings agency Moody’s over rosy ratings placed on Mortgage Backed Securities that were issued prior to the financial crisis and later went sour.

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

Mortgage Update October 21 2016

“Mortgage Bonds are slightly higher and Stocks slightly lower after a mixed bag of earnings reports hit the wires.

Today’s session will be on the quiet in the absence of any economic data and any glaring headlines from across the globe.

I will continue to recommend carefully floating, but be aware that Mortgage Bond prices are stalling at current levels.

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

Mortgage Update October 20 2016

“Mortgage Bonds continue in their sideways-to-higher pattern, above key support after three straight days of green candles.

In the somewhat weak economic news category, weekly Initial Jobless Claims rose more than expected while the October Philly Manufacturing Index fell from September, but beat low expectations.

I will continue to recommend carefully floating. If anything changes, I will get back to you.”

Mortgage Update October 19 2016

“Mortgage Bonds are near unchanged as a key technical support level holds.

In housing news, September Housing Starts declined from August, dragged down by a big drop in multi-family dwellings.

I will continue to recommend carefully floating, but be aware that sentiment can quickly reverse. If anything changes, I will get back to you.”

Mortgage Update October 18 2016

“Mortgage Bonds are flat to modestly higher this morning, weighed down by rising Stock prices.

Equities are being fueled by strong corporate earnings along with rising oil prices.

Inflation, as measured by the Consumer Price Index, edged higher in September, led by higher costs for housing and gasoline.

The benchmark Mortgage Bond continues to receive support from a key technical level. As long as that support level holds, carefully floating is recommended.

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