Mortgage Update June 30 2016

“Mortgage Bonds are slightly higher, while Treasuries edge lower as the safe haven trade into the U.S. Bond market loses some of its shine one week after the U.K. referendum to leave the EU.

Over the past 48 hours, Stocks have gained back more than half the initial losses brought on by the surprise vote results. They are modestly higher early on today.

I will continue to recommend carefully floating, but be aware that mortgage rates are near all-time lows. If anything changes, I will quickly alert you.”


Mortgage Update June 29 2016

“Mortgage Bonds continue to show resilience and are holding onto recent gains, despite a solid bounce back rally in Stocks.

In economic news, Core PCE inflation was tame, while Personal Spending edged higher in May. May Pending Home Sales fell more than expected and can somewhat be attributed towards low inventories of homes for sale.

I will continue to recommend carefully floating, but be aware that Mortgage Bonds prices are at three-year highs, while mortgage rates are at three-year lows.

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


Mortgage Update June 28 2016

“After the two-day surge spurred on by the Brexit vote, Mortgage Bonds are flat to lower this morning as investors bargain hunt for cheap Stock prices at the expense of Bonds.

With mortgage rates within whiskers of the best levels ever, it would never be foolish locking at current levels. On the other hand, over time, rates may continue to decline as yields around the globe fall and more uncertainty emerges.

In the longer-term, I would recommend carefully floating, with the understanding the gains will be uneven amidst this extremely volatile Bond market.”


Mortgage Update June 27 2016

“Mortgage Bonds are moving another leg higher in the aftermath of Friday’s Brexit vote. Global Stock markets continue to push lower as the volatility continues.

I am recommending floating, as the immediate fallout and uncertainty from the Brexit vote still exists. If anything changes, I will get right back you.

Have a great week!”


Mortgage Update June 24 2016

“Mortgage Bonds are surging today as global and domestic Stock markets plunge after the United Kingdom exited the European Union last night.

After the dust has settled, mortgage rates are now at multi-year lows. I am recommending carefully floating, but with Mortgage Bond prices at lofty levels and rates at historic lows, I could switch to a locking stance sometime today.

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


Mortgage Update June 23 2016

“Mortgage Bonds begin the day modestly lower giving back yesterday’s meager gains ahead of tomorrow’s results from the “Brexit” or “Bremain” vote.

In economic news, Weekly Initial Jobless Claims declined, while May New Home Sales came in less than expected.

I will continue to recommend carefully floating, as long as Mortgage Bonds can remain above key support levels. If anything changes, I will get back to you.”


Mortgage Update June 22 2016

“Mortgage Bonds are near unchanged as global investors fasten their seat belts ahead of tomorrow’s “Brexit” or “Bremain” vote across the pond.

The only economic report released today was the better-than-expected May Existing Home Sales data, signaling the housing sector continues to improve.

Ahead of tomorrow’s key vote in Europe, I am recommending carefully floating. If anything changes I will get back to you.”

Mortgage Update June 21 2016

“Easing Brexit fears and added supply continue to weigh on Mortgage Bonds this morning, while Stock prices are trying to add to yesterday’s gains.

There are no economic reports set for release today. The Treasury will sell a boatload of 5-year Notes today, results at 1:00 p.m. ET.

Fed Chair Yellen is on Capitol Hill in front of the Senate Banking Committee giving a cautious tone on the economy.

With Mortgage Bonds getting support at key technical levels, I am recommending carefully floating. If anything changes, I will get back to you.”

Mortgage Update June 20 2016

Stocks around the globe are in rally mode after recent polling shows Brits are in favor of staying in the European Union. The so-called “Brexit” vote is this Thursday.

When Stocks rally, this typically has a negative impact on Mortgage Backed Securities and the home loan rates tied to them. Global Bond yields are also moving higher, which can negatively impact home loan rates as well.

With both technicals and fundamentals working against Mortgage Backed Securities and home loan rates, I recommend locking.

Mortgage Update June 17 2016

Mortgage Bonds are battling to stay above “The Wall of Resistance” again today. If prices can remain above the resistance level, it would be a positive event that could lead to better rates ahead.

In housing news – which has been a bright spot in our mixed U.S. economic news, single-family Housing Starts increased, while groundbreaking on multi-family units declined. Building Permits, a sign of future development, came in slightly below expectations. Mortgage Bonds initially lost some steam on the release but quickly snapped back to unchanged.

Let’s start the day floating, and see if Bonds can remain at current levels or bust higher. If anything changes, I’ll let you know.