rates: Mortgage Market Update for Wednesday July 9th, 2008
- 07/08/08 11:13 PM
Bonds have been on a wild ride this week trading significantly lower until a sharp turn around Monday afternoon followed by a big rally yesterday, opening at their low and closing just off their high. The 30 year fixed rate is at it's best level in just over a month. Bonds and stocks both finished up on the day which is not a normal occurrence. Oil was down over $5 on the day, the biggest one day drop in about 4 months. Technically bonds broke through 2 levels of resistance and are just 28 bps below the 200 day moving average, which will be … (0 comments)
rates: Mortgage Market update June 19th, 2008
- 06/19/08 02:49 PM
Rates were down modestly today 22 bps on the day. Bonds tested both the closest support and resisitance levels and closed right in the middle of it....meaning we are in another tug of war with the bulls and the bears going into next week's Fed meeting. From a technical standpoint bonds are still "oversold" so hopefully we can break through the resistance and get interest rates back down a bit.
_______________________________________________________________________________________________________________________ The above Mortgage Market Update information was provided by Bryan Flynn of Wells Fargo Home Mortgage. Bryan can be reached at Bryan.K.Flynn@wellsfargo.com or by phone at 508.363.2223. Bryan has worked in … (3 comments)
rates: Mortgage Market Update for June 16,2008
- 06/16/08 02:50 AM
Mortgage backed securities are trading flat on the day down just 3bps this morning. Bonds have been in a downward trend for the last 2 weeks and rates have crept up .75% higher nearing 7.00%. The recent pressure on bonds are due to the pressure the heightened inflation concerns of the market. The Fed meets next week and bonds traders are looking for short-term rates to be increased which will be great for long-term bond rates....however don't expect much more than shift in the policy statement. Floating for now.... … (0 comments)
rates: Mortgage Market Update Friday the June 13th, 2008
- 06/13/08 03:52 PM
Well it is official......the bond market is fearful of inflation. Some decent CPI numbers came out this morning but that was overshadowed this afternoon by the word no bullish bond trader wants to here........INFLATION is here and rising......well on the flip side it is quite obvious with the cost of food and energy. The manufacturing, wholesalers, and retailers are going have to pass their rising costs off to the consumer, at least partially and that leads to inflation. At the end of May mortgage rates were in the low 6s and we are just another down day away from 7% conforming … (1 comments)
rates: Market Update for June 12, 2008
- 06/12/08 01:32 AM
Mortgage Bonds are down 38 bps this morning as of 920am EST. Stock futures are up and oil is down which is leading to bond deterioration. Retail sales were released this morning and came in better than expected for May and better than they were in April, very good news for consumer sentiment. Some people did receive their stimulus checks at the end of May so that may have added to the positive numbers. With a dual layer of support just behind current prices it would be prudent to FLOAT for now. _______________________________________________________________________________________________________________________ The above Mortgage Market Update information was provided … (0 comments)
On a technical note, mortgage bonds are down 5 straight session at 216 bps points....rates have rose to the 6.625% area on a conventional 30 year fixed. Bonds are oversold, which generally indicates that the buyers will be back and drive prices back up. When bonds drop suddenly they have a tendancy to retest half of their loss so in this case upside of above 100 bps...there is no guarantee and a lot with have to do with what the future economic indicators say, but technically it hopefully will happen That being said bonds are trading high by 28 … (0 comments)
rates: Market Update June 10th, 2008
- 06/09/08 11:12 PM
Mortgage Backed Securities had a wild day yesterday. Off 81 bps at the low but did rally to close at a support level see chart below noting the circled red candlestick representing yesterdays trading day(amazing how that works)
Bernanke spoke yesterday about inflation believing the sluggish growth of our economy will hold donw inflation, seemingly not considering a rate hike in the near future. Bonds like good inflation talk and that was okay so we will see how bonds react this morning. Retail sales out Thursday...should see a big reaction in the market. … (0 comments)
rates: Market Update June 9th, 2008
- 06/09/08 12:19 AM
Mortgage Bonds are taking a beating off this morning by 59 bps early bouncing off a resistance level and now are sitting down on a level of support. No economic data released today. Retail Sales is out Thursday which should be a market mover. Oil went up $16 a barrell on Thursday and Friday. Rates are at their worst level since the first part of March. Lehman Brothers lost 2.8 billion and is raising another $6 billion in cash....a sign the credit crisis is not quite over. All in all rates are in a down trend and we look for some support level to strengths … (0 comments)
Mortgage Bonds are down again today after breaking through the 200 day moving average yesterday afternoon. Initial jobless claims where lower than expected this morning and the umemployment rate is released tomorrow and given the inconsistentcy of this number recently we will remain in a LOCK. Should be a big market mover tomorrow. Stay tuned.... … (0 comments)
rates: Mortgage Market Update for June 4th, 2008
- 06/04/08 02:19 AM
Mortgage Bonds are trading lower this morning and surprise, surprise they are sitting right on the 200 day moving average. On Monday bonds broke through and closed above the 200 DMA and did trade below it yesterday but closed in positive territory at the end of the trading day. Technically yesterday was a bulls v. bears struggle because of the wide trading range so it could be another day of uncertainty in the mortgage bond market. Productivity and ISM Index both came in better than consensus and stocks have been down over the past few days so I expect a … (0 comments)
rates: Mortgage Rate Update for June 3rd, 2008
- 06/03/08 01:25 AM
Mortgage bonds are trading -6 bps this morning with no economic data on the docket for today. Fed chairman Bernanke is speaking this morning about the economy and he could move markets, other than that bond trading will be driven by the stock market (stocks up bonds down vice versa) Bonds did close above the 200 day moving average yesterday and if those levels can hold today bonds rates should be trending lower for the next few days. Some employment, productivity and manufacturing numbers are to be released tomorrow that could sway the markets, but for now I recommend a … (2 comments)
Bonds have been on a wild ride this week trading significantly lower until a sharp turn around Monday afternoon followed by a big rally yesterday, opening at their low and closing just off their high. The 30 year fixed rate is at it's best level in just over a month. 
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