The Mortgage Update 10/31/2012

Yesterday MBS traded at its highest levels of the week. ADP employment numbers helped rates in the morning; however the FOMC announcement failed to define a timeline for tapering causing a re-price for the worse in the afternoon. Today Jobless Claims and Chicago PMI are released. Month end trading could cause late day volatility as investors firm up their books before heading out to trick or treat

The Mortgage Update 10/30/2013

Mortgage rates continue to hold around the 4% while Treasuries lost ground over night, despite the fact Consumer Confidence was weaker than expected. Today is another big day for economic news. Analysts predict U.S. companies added few workers this month, which could give the market a boost today. GDP is announced at 8:30; investors will be looking at this for inflation concerns. Federal Reserve policy makers end a two-day meeting today as well. Bernanke should announce their plan to maintain their bond purchase programs through March of next year at 2 PM.

The Mortgage Update 10/25/2013

All was quiet in the bond market yesterday. Economic data failed to move the market and weak trading levels didn’t help us out either. Most traders are waiting for next week’s month end trading and FOMC Announcement. Today Durable Goods, Consumer Sentiment and Wholesale inventories are set to be released. Although Durable goods orders increased 2.3 percent in September, the biggest gain since June, it shouldn’t have much effect on the market. Let’s see if we can just ease into the weekend, shall we?

The Mortgage Update 10/24/2013

Mortgage Rates improved slightly yesterday, but faded n the afternoon trading hours. With no economic news released yesterday trading levels defined the market movements. Today Jobless Claims and New Home Sales are the main economic drivers in the Bond Market. Reports should show the partial government shutdown cost the U.S. 120,000 jobs in October and trimmed .25 percentage points from the 4th quarter economic growth. Our Rally will be tested today, let’s see if we can maintain it….

The Mortgage Update 10/23/2013

Mortgage rates improved quickly yesterday after a surprising Jobs Report was released. Economists had predicted job growth had improved, however the actual employment numbers were weaker than expected. Overnight Treasuries rose for a second straight day on speculation the Fed will delay plans to begin tapering. Today data should show monthly improvements in import price and housing cost indices. The market volatility index is the lowest it has been since May; let’s see if we can maintain yesterday’s gains in the market

The Mortgage Update 10/22/2013

Not much change yesterday in the MBS markets as volume remained light. Investors focus has been on the Jobs Report that will be released today at 8:30 AM. This report was due to be released on October 4th but was pushed back due to the government shutdown. The report is on the September employment situation and was almost ready for release when the government shutdown started. This report will receive special attention because of the lack of economic data that has come out recently. The report fell well below expectations and this has caused a MBS market rally. This will also be the first and hopefully only time that this report will not be released on a Friday so gear up for Jobs Tuesday!

The Mortgage Update 10/21/213

Friday was a quiet day for the Bond Market with no Fed speakers or economic news released. Overnight Treasuries snapped a 3 day gain before the delayed Jobs Report is released tomorrow. Economists predict the report will show U.S. employers added the most jobs since April last month and durable goods orders climbed. Yields rose from their lowest levels since July amid signs the economy is finally gathering momentum. Today Existing Home Sales Report is due at 10 AM, sales fell in September. With the government back in action we will finally get some meaningful economic data and that could mean more volatility for the market.