MBS prices are up +11/32 (FNMA 30yr 6.0 at 100.69), above the initial price level at +6/32, and at the high for the day. Investors moved funds out of the stock market and into MBS markets. The Dow fell almost 250 points. July Existing Home Sales rose 3% to 5.0 million annual units, a little higher than the consensus forecast, and down 13% from one year ago. Inventories of unsold homes climbed to an 11.2 month supply, a record high. Median home prices were down -7% from one year ago. Of note, an estimated 40% of the home sales were foreclosures. The increase in sales was good news, and median prices were well above their recent lows, but the large quantity of unsold homes on the market may keep pressure on prices. Tomorrow, New Home Sales, Sentiment, and the FOMC Minutes will be released.

 
Posted by Jeff Jensen on 08/25/2008 03:46 PM   Comments (0)  
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