At The Highs Of The Day Heading Into Close
Posted To:MBS Commentary
Today is much flatter compared to yesterday But 4.5's are still up 5 ticks and we're at highs again near end of day 10yr tsy lower by around 1 bp to 3.64 No data on Friday, but tons to consider tomorrow Waiting for reprices for the better, then consider locking First thing's first. It's another “up” day: Also, we've seen some correction to recent widening trends in MBS. Whether this should be reassuring or cause us to worry about spreads widening back out again is and will be uncertain, but at least we know it's uncertain. Here's what's going through my mind right now: 1. It's uncommon for rallies to string together more than a 4 or 5 day streak. Today marks the 4th day in a very stable and directional trend of improvement in MBS. Don't take…(read more)
This mortgage update is brought to you by: Matthew Graham – You can read the full article at At The Highs Of The Day Heading Into Close
Looking At Longer Term Charts For Perspective
Posted To:MBS Commentary
When faced with a lock float decision with decent arguments for either course of action, I like to look at longer term charts to get a sense of where I'm at vs. where I was or could be. Doing so at the current time leaves me with a pretty simple conclusion. Without trying to predict the future, we're obviously much higher in the 2010 range than we are low–pretty close to the highs in fact. It is frustrating, however, that a lot of the lower prices occurred in early January where we might have to doubt whether they were truly reflective of the range or were, in some way, remnants of year end distortion. Even so, the lows from late Feb make a similar case, but there too, we could impugn those on the grounds that they happened and were reversed abruptly. The bottom line I suppose, would…(read more)
This mortgage update is brought to you by: Matthew Graham – You can read the full article at Looking At Longer Term Charts For Perspective
Current Coupon MBS Move Sideways at Resistance as Stocks Keep Rallying
Posted To:MBS Commentary
The dollar is weaker, oil prices are higher, and stocks are rallying—STILL. The S&P is trading at a new “recovery rally” index high print. Rates traders are ignoring the stock lever—for now at least. Since the auction cycle ended last Thursday, the 10 yr note has staged quite the recovery rally of its own…yields have fallen 14 basis points from the 3.779% high all the way down to 3.634%…which happens to be a very technically relevant level: the 62% retracement of the Dec. 21 sell off. The 2s10s curve is also flatter….now resting at 274bps after peaking at 284bps last Wednesday. Again, this has occurred while stocks have rallied. Do you think the LOW VOLUME stock market is having much of an effect on the yield curve at the moment? I do not believe so…rates traders are…(read more)
This mortgage update is brought to you by: Adam Quinones – You can read the full article at Current Coupon MBS Move Sideways at Resistance as Stocks Keep Rallying
Mortgage Rates Move Lower. Most Aggressive Lender Pricing Seen in Weeks
Posted To:Mortgage Rate Watch
Mortgage rates rallied lower yesterday after the Federal Reserve reiterated they intend to keep the Fed Funds rate at at exceptionally low levels for an “extended period”. The Fed also held steady in their belief that inflation is not posing a threat to economic stability. In regard to the MBS Purchase Program, although the door for some sort of extension or reopening is not completely closed, the Fed is still widely expected to finish the program at the end of March READ MORE . Following the release of the statement, benchmark Treasury yields declined and prices of mortgage backed securities moved higher. This allowed most lenders to reprice for the better, lowering consumer borrowing costs by a few basis points . Still, the price improvements were not enough to push the par 30…(read more)
This mortgage update is brought to you by: Victor Burek – You can read the full article at Mortgage Rates Move Lower. Most Aggressive Lender Pricing Seen in Weeks
Loan Demand at Stand Still. Are You Nervous About the Year Ahead?
Posted To:MND NewsWire
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 12, 2010. The survey covers over 50 percent of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. A rising trend of mortgage applications indicates an increase in home buying interest, a positive for the housing industry and economy as a whole. Furthermore, in a low mortgage rate environment, such a trend implies consumers are seeking out lower monthly payments which can result in increased disposable income and therefore more money to spend on discretionary items or to pay down other debt. From the release… The Market Composite Index, a measure…(read more)
This mortgage update is brought to you by: Adam Quinones – You can read the full article at Loan Demand at Stand Still. Are You Nervous About the Year Ahead?