Mortgage Update August 24 2015

“Global growth concerns, falling oil prices coupled with an 8% drop in China’s Shanghai Composite overnight are causing Stock prices to plunge around the world, while pushing cash to the safe haven of Bond markets. There are no economic reports due for release today, but the rest of the week will see housing data, consumer sentiment and confidence along with the closely watched second reading from 2015 Q2 Gross Domestic Product. With the big move lower in Stock prices, I am recommending carefully floating. However, Stock prices are well off their early session lows, while Mortgage Bond prices are well off their highs. In this market environment, sentiment can quickly reverse. If anything changes, I will get back to you.”

Mortgage Update August 21 2015

“Despite a big move lower in the Stock markets this morning, Mortgage Bonds are near unchanged and just beneath a very tough ceiling of resistance.
There are no economic reports due for release today. I will continue to recommend locking. Mortgage Bond prices are at the top of the short term trading range and can’’t seem to muster up enough strength to push higher. If anything changes, I will get back to you. Have a great weekend!”

Mortgage Update August 20 2015

“Stock prices are plunging in sympathy to big losses seen in Asia and Europe. This has given a boost to Mortgage Bond prices. The rise in Mortgage Bonds comes despite positive news from Existing Home Sales and an increase in Weekly Initial Jobless Claims. With Mortgage Bonds back at the short term highs, I will continue to recommend locking. If anything changes, I will get back to you.”

Mortgage Update August 19 2015

“Mortgage Bonds are drifting lower, this despite turbulence in the Stock markets and low inflation data from the Consumer Price Index. The Fed minutes from the July 29 Fed meeting will be released at 2:00pm ET today, and we may get some hints on interest rate moves. The question will be if the Fed signals for a September hike. With Mortgage Bond prices edging lower in what should be a Bond friendly environment, I will continue to recommend locking, until such time that I can see prices stabilize. If anything changes, I will get back to you.”

Mortgage Update August 18 2015

“Mortgage Bonds are near unchanged levels, despite modest losses in the Stock markets. Weighing on Bond prices was a positive report from Housing Starts, which hit their highest levels in nearly eight years. I am recommending locking as Mortgage Bond prices have fallen below several key technical support levels. If anything changes, I will get back to you.”

Mortgage Update August 17 2015

“Mortgage Bonds are being boosted by a weak reading from the Empire State Manufacturing Index along with declining Stock prices. The week features readings on housing and manufacturing, with inflation data from the Consumer Price Index. In addition, the Fed will release the minutes from the July 29 meeting on Wednesday afternoon. I am recommending carefully floating, but in this fast moving market, sentiment can quickly reverse. If anything changes, I will get back to you. Have a great week!”

Mortgage Update August 14 2015

“After hitting key overhead resistance levels earlier in the week and failing to break above them, Mortgage Bonds have reversed lower. In today’s action, hotter than expected wholesale inflation from the Producer Price Index is weighing on Bond prices. I will continue to recommend locking, until such time that I can see some stabilization of prices. If anything changes, I will get back to you. Have a great weekend!”

Mortgage Update August 13 2015

“Mortgage Bonds are flat to slightly lower, being supported by a key technical level. Stocks prices are lower, which is also lending some support. In economic news, solid July Retail Sales data is weighing on Bonds, while inline Weekly Initial Jobless Claims had little impact on trading. I am recommending carefully floating, but in this volatile market, sentiment can quickly reverse. If anything changes, I will get back to you.”

Mortgage Update August 12 2015

“Global Stocks continue to melt down as China’s devaluation of the Yuan continues, which is conjuring up notions of slowing growth in the world’s second largest economy. There were no economic reports released today. The Treasury will sell a sizable amount of 10-Year T Notes, which could impact trading. With prices at the short term highs, I am recommending locking. If anything changes, I will get back to you.”

Mortgage Update August 11 2015

“Mortgage Bonds are higher after several currency measures enacted by China sent global Stock markets, as well as Stocks here in the U.S., on a downward spiral. In economic news, Productivity in the second quarter of 2015 came in near expectations, while worker compensation increased, as did unit labor costs. The news was somewhat inflationary. I will continue to recommend floating, but I grow ever so cautious as Mortgage Bond prices are near a key technical resistance level. Prices have reversed lower in the past few months after hitting those critical levels. If anything changes, I will get right back to you.”