Mortgage Update December 18 2015

“Mortgage Bonds are modestly higher and well off the opening and best levels of the day. There were no economic reports due for release today. Despite big losses in the Stock markets yesterday and today, Mortgage Bonds have been unable to mount any meaningful gains. I am recommending locking. Have a great weekend!”

Mortgage Update December 17 2015

“Yesterday the Fed finally raised rates for the first time in almost a decade. Mortgage Bonds, in a somewhat counterintuitive response to some media people, moved higher yesterday and are continuing to move higher so far this morning. Lower oil prices are pushing Stock prices lower, which is also helping to push Bond prices higher. I am recommending carefully floating, for sentiment can quickly reverse in this fast moving market. If anything changes, I will get back to you.”

Mortgage Update December 16 2015

“It’s Fed Day! Investors expect to get the first Fed interest rate hike in nearly a decade when the decision is announced at 2:00 p.m. ET. Today’s economic news took a backseat to the Fed’s decision, where both Housing Starts and Building Permits came in better than expected. I am recommending carefully floating to see how Mortgage Bond prices react to the Fed statement later this afternoon. If anything materially changes, I will quickly alert you.”

Mortgage Update December 15 2015

“Higher Stock prices coupled with an uptick in core consumer inflation are pushing Mortgage Bonds lower this morning, following yesterday’s steep losses. The two-day Fed meeting kicks off on Capitol Hill this morning. There will be no headlines out of today’s meeting. The monetary policy statement will be released at 2:00 p.m. ET tomorrow with a press conference by Fed Chair Yellen at 2:30. With the recent big drop in Mortgage Bond prices and technical damage done, carefully floating is recommended. If anything changes, I will get back to you.”

Mortgage Update December 14 2015

“It’s Fed week! The two-day Fed meeting kicks off tomorrow and ends on Wednesday with the 2:00 p.m. ET release of the monetary policy statement.
The Fed will most likely hike the Fed Funds Rate for the first time in 9 years, by a 1/4 point. At this time, inaction by the Fed would spark a fresh round of uncertainty, so get ready for the hike. Ahead of the statement release, I am recommending carefully floating if the market behaves.
If anything changes, I will quickly get back to you. Have a great week!”

Mortgage Update December 11 2015

“Mortgage Bonds are higher being supported by lower Stock prices and ahead of big Fed buying later this morning. In economic news, the November Producer Price Index, a measure of wholesale inflation, rose more than expected, while Retail Sales came in near expectations. With today’s bullish move higher for Mortgage Bonds, I am recommending carefully floating. However, sentiment can quickly reverse. If anything changes, I will get back to you.

Mortgage Update December 10 2015

“Mortgage Bonds are near unchanged levels, trapped beneath resistance at the 25-day Moving Average. Traders appear to be sitting on their hands ahead of next week’s big event … the Fed Meeting, where it is highly anticipated that an interest hike will take place. With Mortgage Bond prices smack in the middle of a trading range, I am recommending carefully floating. However, sentiment can quickly reverse. If anything changes, I will get back to you.”

Mortgage Update December 9 2015

“Mortgage Bonds are modestly lower as traders begin to position themselves ahead of next week’s Fed meeting. There were no economic reports to influence trading today, but later this afternoon the Treasury will be selling $21B in 10-Year Treasury Notes. The added supply is weighing on the Bond markets. With Mortgage Bond prices drifting lower, I will continue to recommend locking until such time that I can clearly see signs of a reversal higher. If anything changes, I will get back to you.”

Mortgage Update December 8 2015

“Mortgage Bonds are near unchanged, despite big losses seen in the Stocks markets. Weighing on Mortgage Bonds is added supply from the Treasury as it begins to offer a boatload of T-Notes this afternoon. There were no economic reports released today. With stiff resistance just above current levels and Bond prices unable to mount a rally in the face of declining Stocks, I am recommending locking. If anything changes, I will get back to you.”

Mortgage Update December 7 2015

“After last week’s volatility, Mortgage Bonds are trading modestly higher as traders look ahead to the next big event, next week’s Fed meeting.
There are no economic reports being released today. Stocks opened lower being dragged down by plunging oil prices. With declining Stocks to begin the week and flat to higher Mortgage Bond prices, I am recommending carefully floating. Have a great week!”