Mortgage Rates holding true to Monday's call.
Today's downward trend is not shocking as it lines up perfectly with yesterdays large gains. While the debt ceiling looms ever closer and over the heads of all I do not expect to see anything different than the patterns we are seeing this week. Until a resolution comes rates will likely continue its roller coaster ride as those influencing rates and bonds try to guess the results ahead of time.
Here are the other market drivers today...
When you look at the amount of drop in mortgage applications that does not bode well for recovery signs as housing is critical to the recovery. Durable Orders being well off from last month also should point to rates staying lower BUT with the potential Fed Shut Down from the Debt Ceiling reaching its limit we are not seeing normal trading patterns now.
Currently the FNMA 4.0 Coupon is at 100.375 and that is down 28bps from yesterdays close. The 10Y is also off -7/32 and currently its yields are just below 3 at 2.98%
Should be interesting for watching as the Rep's and Dem's look to posture themselves as the hero and keep this going until the wee hours of the weekend before any real deal gets inked. Don't put it out of possibility a deal wont come down this weekend and a temporary shut down could take place. If this happens you wont be accessing FHA/VA and USDA insured products so be aware!
Make it a great day...
Comments (0)Subscribe to CommentsComment