Mortgage market Update Week of 1/23 - 1/27/12
Lots of good stuff coming our way...
(lol)
Actually we have some interesting news for this week and it could be a mini fireworks display of increase or decrease... or possibly just an "all show no go" dud that lights with expectation and then ends with a big nothing.
Tomorrow is the "Obama Tuesday" and his State of the Union Address that will get focus. Wednesday is the FOMC direction on interest rates, that helped push our bond prices down recently, in hedge against the comments in the report. If news of housing not favorable look for a further sell off and this next wave could be 50bps or more. GDP and Durable orders come at end of week and will also give some further insight to the state of our "recovery" and what direction rates may be headed.
I believe the problems are not over and news is by no means going to cause a shock wave into the rate markets. I think tomorrow and Wed bring us back up closer to the 102.75 - 103.00 level (FNMA 3.5 coupon). If not and news is bad (for rates) its quite possible we could fall all the way down to the 102 level.
Don't get lulled into complacency the markets want to rally but there is nothing substantive to rally on yet however we have all seen rallies being built form an attitude or opinion or even a feeling. We are still volatile and LOCK while pricing is favorable the upside is limited and the downside has much more weight.
Currently the FNMA 3.5 closed at 102.625
PROTECT yourself from inflation and buy NON (Government) reproducible assets like housing and Silver and Gold!
make it a great week and I will write on important news breaks to warn of pending gains or losses as the week unfolds...
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