Mortgage rates are cautious ahead of the Fed Beige Books report wed afternoon.
The 10Y is off slightly with Yield now back over 3%, currently sitting at 3.02%
The FNMA 4.0 coupon opened with a gap down loss of -15bps and has since peeled off an additional -9bps as the market waits to see what the beige book is going to say about the economy.
I expect today to likely remain close to its current levels, the opening losses, and we should see some retracement tomorrow afternoon (provided nothing unexpected is in the report).
Trading range on the FNMA 4.0 should stay between 100.75 - 101.00 (currently at 100.813)
Some global factors are the Greece debt restructure and it announced its selling off a percentage of its ownership in some of its equity positions to pay down debt. Portugal has made its decision in its recent election to remove the democratic / socialistic party from power and is focused on austerity with rate hikes in the near future, potentially.
Caution is likely the name of the game today so with our recent rise for several weeks and major news pending both here and abroad do not be surprised by an overall cautious tone today and tomorrow morning.
If you have questions on markets or direction, looking to buy or refinance your home, or have questions on investment property financing and strategy, please call or email me.
David Shamansky
US Mortgages
1745 Shea Center Dr 4th Floor
Highlands Ranch, CO 80129
720-524-8020
NMLS#245170
Equal housing lender
*above commentary is my own and does not guarantee any direction of rates and markets. It is based solely on US economic and global factors and news but does not guarantee any future results.
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