The Day Ahead....
You cannot look ahead without a peak back. While today has minimal economic news with speeches from two Fed presidents and two weekly store sales reports a look at yesterday may help provide some guidance. Interest rates rose Monday after the Treasury said it will begin selling nearly $10 billion of its $142 billion of mortgage-backed securities holdings. Rates were most effected in the middle of the curve with the 5-year yield up nearly 10 basis points to just over two percent. Though rates rose on the announcement, the Treasury believes the sales will have only a minimal impact on the mortgage market. Low mortgage rates in February didn't give much of a boost to existing home sales which fell nearly 9.2 percent, a contraction that drove supply up and prices down. Why you care? With New Home Sales being released tomorrow my eyes are on the housing market's role in the economic recovery.
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