Mortgage Market Report for Tuesday April 22, 2008
The volatility continues this morning, on the heels of yesterday's incredibly wild session.
Yesterday Bonds were extremely volatile. Providing additional challenges for all of us attempting to navigate through these wild times, which include both enormous price swings as well as rapid directional changes in the market.
Yesterday's rise in the Mortgage Bonds was an announcement from The Bank of England, allowing Banks to swap Mortgage Bonds for government bonds, which creates greater value and stability for mortgage backed securities. Since this announcement did not effect Treasuries, they did not participate in the rally. This further illustrates the pitfalls of watching incorrect indicators like the 10-year Treasury Note.
Existing Home Sales for March was reported. It was not a great report but it was not worse than the market had expected.
McDonald's Corp 1st quarter earnings beats estimates. AT&T, the biggest US phone company, inline with analysts 1st quarter expectations. Oil hits yet another record high of $118.05.
Yesterday's move higher pushed Bond prices above both the 50 and 100-day Moving Averages, which may now serve as a floor of support.
Thank you for listening to http://www.contactherrick.com/ Please check back often for another report for you, your family, your friends and your important business contacts.
This is a quote from Maria Edgeworth,
"If we take care of the moments, the years will take care of themselves."
Roger Herrick
California Mortgage Broker
www.ContactHerrick.com
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