The Mortgage Update 10/4/2013

It appears the markets are more interested in the Employment Situation Report than the government shutdown. Too bad, the Employment Report will not be released today, due to the shutdown. That put more emphasis on ISM Data that had both stocks and bonds moving lower. In the afternoon the Dow broke through a technical trading level, below 1500 causing investors to run to the bond market. What will happen today is anyone’s guess…

The Mortgage Update 10/3/2013

The bond market began the day close to Tuesday’s latest levels, but rally slightly after the ADP Employment Report was released. The report missed forecast by over 20K jobs, due to a decrease in service industries in September; however it was not enough to sustain the positive momentum. Overnight, Washington failed to come to an agreement prolonging the government shut down with no end in sight. Initial Jobless claims increased by 10,000 last week according to the Bloomberg report, we will see if that is enough to move the market in our favor today.

The Mortgage Update 9/30/2013

The potential government shut down dominates the headlines this morning. Congress must pass a stop gap by midnight to avoid a shutdown. Stocks are hurting as the deadline nears, however the bond market is benefiting from investors demand for safer assets. Chicago PMI is the only relevant data today and likely overshadowed by headlines and month/quarter end trading today. The jobs report is due out this Friday, however it might be delayed if the government can’t come to an agreement soon.

The Mortgage Update 9/27/2013

Bond markets lost a little ground yesterday with stronger than expected Jobless Claims figures and GDP failed to make a significant statement. Today is light on economic news with Personal Income and Outlays and Consumer Sentiment this morning. The market is up in the pre-trading hours on concern over the Senate vote today on a stopgap spending bill. There is no clear end to the debt ceiling debate and it should remain the forefront of investors’ minds for the weeks to come.

The Mortgage Update 9/26/2013

Mortgage rates continued to improve yesterday, making it the 11th straight day where rates have held steady of moved lower. Data came in as expected yesterday with Durable Goods performing to forecast and lackluster long term stats for New Home Sales creating no reason for the bond market to move. However, dear over a possible government shut down drew investors back to the bond market later in the day. In other mortgage news mortgage applications rose last week, refinancing activity index rose nearly 18 percent, and the FHFA continues their new campaign to educate HARP eligible homeowners about refinancing opportunities.

The Mortgage Update 9/25/2013

Yesterday the MBS market saw slow and steady gains all day. The boost began in the overnight trading hours with weaker than expected economic data out of Germany and the ECB promising ongoing support for the struggling portion of the Eurozone. Consumer Confidence declined according to an afternoon report and light volume in the 10 year Treasuries forced traders to the MBS market late afternoon; pushing the market to new highs. This morning amid speculation the U.S. budget talks are risking a government shutdown has boosted demand for safer assets. New Home Sales will be released at 10 AM today, but the debt ceiling debate is front and center today…

The Mortgage Update 9/24/2013

Today it’s all about confidence, Consumer Confidence. Economists predict confidence fell last month according to a survey. The Case Shiller index of home prices rose 12.4 percent in July from a year earlier. The market for U.S. government debt has yet to react to any potential issues over raising the debt ceiling. That could change today if the government cannot come to an agreement. If the House and Congress don’t agree on something by September 30th the government could shut some of its operations. We will end the day with a 2-year Treasury auction.