The Mortgage Update 10/17/203

It’s over…for now. President Obama signed a deal late last night to end the partial government shutdown. The market recovered all morning losses causing a re-price for the better. Investors flooded back to the market bringing trading levels back to normal. Adding to the rally were comments in the Fed’s Beige Book that stated, “the economy grew at a modest to moderate pace.” This suggests tapering will be delayed until the first quarter of 2014. Initial Jobless Claims will be out at 8:30, which is expected to show a decline from the previous month. 10 AM the October Philly Fed and Freddie Mac’s weekly mortgage rate survey will be released.

The Mortgage Update 10 16 2013

Mortgage rates increased slightly yesterday as hesitant investors wait for news regarding the government shutdown. Trading volumes are 75% of the 30-day moving average showing the direct impact the political uncertainty has on the MBS market. Mortgage applications remain flat week over week while home purchases dip a report will state today. The Debt Ceiling deadline is now just hours away while we all sit and watch the showdown unfold. Today the MBA reports on Mortgage Applications, multiple Fed speakers will take the stage today and the Beige Book will be released at 2 PM.

The Mortgage Update 10/14/2013

Mortgage rates remained flat to worse Friday. The market saw more volatility than the previous week, however any potential long term moves hinge on the government reopening for business. Investors are eager to see the employment report compiled prior to the shut down, however it still has not been released. Ben Bernanke is scheduled to speak at 8 PM today while no other economic news scheduled. Thursday is the big news days with Jobless Claims and Philadelphia Fed Survey still scheduled to be released.

The Mortgage Update 10/11/2013

It was a rough start in the morning yesterday but a rally in the afternoon helped turn us in the right direction. The turnaround was caused by a better than expected 30 yr treasury auction as well as public comments by multiple Fed. officials stating they did not expect any taper of the QE program before the end of the year. This momentum has carried through this morning with a strong opening in the MBS market. If this holds through the day then we should have favorable pricing through the weekend.

The Mortgage Update 10/9/2013

The big news late yesterday was that President Obama is expected to officially nominate Janet Yellen today to succeed Bernanke as head of the Federal Reserve after he steps down in January. It is expected that her appointment would mean that the Fed would continue to keep rates low in the short-run. The FOMC minutes from September will be released today at 2PM EST, which will provide further details about the direction the Fed is heading with its current bond buying program.

The Mortgage Update 10/8/2013

It was a volatile day yesterday in the MBS markets as
we rallied in the morning before selling off in the
afternoon. The morning rally was the result of investors
pulling money out of the equity market and bonds were
the benefactor, however those gains were erased by an
afternoon sell off. This was believed to be caused by an
article released that suggested President Obama may
be leaning towards selecting Donald Kohn as the next
Federal Reserve Chairman. Donald Kohn is perceived
to be more hawkish and therefore more likely to scale
back the Fed’s bond buying program than the
perceived frontrunner Janet Yellen. No immediate
decision is expected by Mr. Obama but investors will be
paying close attention to any indication about what
direction he may be leaning.

The Mortgage Update 10/7/2013

Bonds are poised to open up this morning as the US government is moving into the second week of a shutdown with no end in sight. Although concerns over the budget and debt ceiling continue to weigh on sentiment, the drop in both yields and volatility in Treasuries is a sign that investor confidence in a resolution is outweighing worry over the current situation. With many of the economic releases delayed, the key event of the week will be the release of the September's FOMC minutes where the Fed surprised most everyone by not tapering.