Rate Lock Advice and Mortgage Market Update
September 15 , 2009, 7:15 PM PT
Lock Advice: LOCK
MBS prices are down -6/32 (FNMA 30-yr 4.5 at 100.11), which is about 9/32 lower than yesterday at this time. The 30-yr fixed FNMA required net yield (60 day) is now at 4.84%, from 4.78% yesterday
When MBS prices are up, Rates are down.
Lock advice changes throughout the day .
Good economic news = Bad Rate News.
National Average Fixed Rate Mortgage
Down 0.01% at 5.09% on Sep.14
Fannie Mae Mortgage Backed Securities
MBS Opened at 4.745% Up 0.053%.
10 Year Treasury currently 3.450% Up 0.03%
DJI Stocks $9,595.44, Down -31.36, -0.33%
European and Asian Markets Up 0.231%
Nymex Crude Oil currently $67.59 Up $0.31
This Week, the most significant economic data will be the monthly CPI inflation report on Wednesday.
Stronger than expected economic data hurt MBS markets this morning. August PPI rose 1.7% from July, but was -4.3% lower than one year ago. Core PPI, which excludes food and energy, rose at a 2.3% annual rate.
August Retail Sales increased 2.7%, above expectations of 1.9%. While the Cash for Clunkers program produced a jump in auto sales in August, Retail Sales ex-autos also far exceeded the consensus forecast. Analysts will be watching to see if the strength in retail sales continues or if consumers are mostly tapped out from back-to-school sales and the Cash for Clunkers program.
Finally, the Empire State index rose to 18.9, above the consensus of 15.0. The Dow is up 25 points.
No more economic data will be released today. Fed Chief Bernanke will be speaking at 10:00 et.
- The Consumer Price Index (CPI), the most closely watched monthly inflation report. CPI looks at the price change for those finished goods which are sold to consumers.
- Industrial Production, another important indicator of economic activity,
- Housing Starts
- The Treasury will announce the size of upcoming Treasury auctions.
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Your Fha Guru
The Mortgage Markets and Rate Lock Advisory is updated several times a day and is available at http://www.yourfhaguru.com
August 2009, Rate Lock Advice and Mortgage Market Update