Mortgage bond prices finished the week near unchanged keeping rates in check despite some up and down trading throughout the week. Rates were slightly better Monday morning tied to continued euro zone debt fears. Those gains were erased after Spain had a relatively successful debt auction. However, concerns remained due to the fact the Spanish auction came with higher yields needed to lure investors. Most of the data was rate friendly with higher than expected weekly jobless claims, weaker than expected housing starts, and weaker than expected Philadelphia Fed data. Mortgage interest rates finished the week near unchanged despite the volatility.
Bernanke Press Conference
The Fed meets with results Wednesday afternoon. In an effort to increase transparency Fed Chairman Bernanke will hold a press conference following the results. This was a major change in Fed protocol implemented last year. Prior meetings had the Fed announce the results with only a brief statement. Bernanke’s foreign counterparts regularly hold press conferences. However, many analysts and even Fed officials themselves have concerns about this press conference. The worry is that while the Fed is expected to keep things in check, Bernanke may unintentionally say something that rattles the financial markets. Bernanke will try his best not to cause instability but the press conference will definitely be an event to watch carefully.
Mortgage News & Commentary Premiere Mortgage Services Inc. Dana Bain 978-422-2311 Newsletter-April 23rd, 2012 BainMortgage.com