Cautiously Floating- Last full trading day of 2013

By
Mortgage and Lending with Finance Of America NMLS #311662

The last full week of trading in 2013 ends today as the Christmas holiday approaches. And looking ahead to next week, the Bond markets will be closing at 2:00pm ET on Christmas Eve, while Stock trading ends at 1:00pm. All capital markets are closed on Wednesday, December 25 in observance of Christmas.

Mortgage Bonds opened lower and pushed further into negative territory after a government report showed that economic growth grew faster than first estimated in the 3rd quarter of this year.  But Bonds were able to shrug off the good news and roared back into positive territory. 

The Bureau of Economic Analysis reported that the final reading on 3rd quarter Gross Domestic Product rose to 4.1%, above the 3.6% from the second reading and above the expectation of 3.6%. The 4.1% was the highest level since Q4 2011 of 4.9%. The rise was due in part to an increase in consumer spending to 2% from 1.4%, a buildup in business inventories and business spending in software. The Fed will need further confirmation from the Q4 numbers to confirm a more robust economy. We talked about the inventory build-up in the past and how this does positively skew GDP.  Nonetheless, the economy does continue to improve.

 

Technically, the benchmark 4% coupon was able to bounce off a key support level at 102.66 each of the past 2 days and have since traded higher. We are going to continue to float with a finger close to the lock trigger.  Remember, we do get those freak Fridays at times when Bonds simply suffer on Friday afternoon, - keep your eye on bond pricing just in case. 

Posted by

Matt Brady

 

Builder Sales Manager, NMLS ID#311662

(858)342-8659 cell |844-268-1952fax

 

Skyline logo

 

mbrady@skylinehomeloans.com| mattbrady.skylinehomeloans.com    
1455 Frazee Road., Suite 705| San Diego, CA 92108

 

    

 

 

 

BIA SanDiego 15 year Member and P2 Sponsor

 

 

 

BIA SMCBoard Member since 2012

 

 

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Mortgage / Finance
Location:
California
Tags:
mortgage rates
money matters

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
409,031

Matt Brady

Lending With Competence And Character
Let me earn your business!
*
*
*
*
Spam prevention