We continue to track technical trading patterns today. After falling below the 100-day moving average mortgage backed bonds fell sharply to the 200-day moving average (indicated by the blue line) as we expected. If you’ll remember mortgage rates move inversely with the price of mortgage-backed bonds so as a result of the sell-off yesterday (indicated […]
Technical trading patterns seem to be the major influencer of mortgage rates this morning. Watch today’s you tube video to understand how this may impact mortgage rates over the next couple days.
There are a lot of important topics to cover this morning: *The mortgage industry is going through another round of credit tightening that will further restrict our ability to provide 100% financing. This time the tightening is being initiated by mortgage insurers. Watch today’s you tube video to understand who will be impacted. *Yesterday Fannie […]
This is pretty big news for our industry: http://online.wsj.com/article/SB120456185094007821.html?mod=hps_us_whats_news The article linked above indicates that we could see huge changes in the way property appraisals are conducted in the future. Essentially, Fannie Mae & Freddie Mac, who ultimately dictate guidelines for a majority of mortgage financing, are agreeing to change the way in which mortgages […]
We expect mortgage rates to drift higher this morning in response “Fed-speak”. If you’ll remember back to the middle of February it was Richard Fisher (Fed official) who criticized the recent cycle of Fed cuts as being soft on inflation. His comments in a speech he made in Mexico City caused mortgage backed bonds to […]
Weakness in the stock market is helping the bond market right now. This may help 30 year rates dip by .125% this afternoon. Watch today’s you tube video to find out what is influencing the markets. We’ll need to be cautious. Technical signals suggest that mortgage bonds are trading against stiff resistance. We could see […]
You Tube link to see rate update video: Mortgage-backed bonds are continuing to rally this morning. After touching the 200-day moving average on Tuesday mortgage-backed bonds have reversed higher by 170 basis points. This is an indication of how strong that level of support is. We have to look ahead to tomorrow as the Fed’s […]
You Tube link to see rate update video: http://www.youtube.com/watch?v=uhh_BCCeazg After moving higher yesterday morning mortgage rates appear to have reversed course on technical trading patterns and testimony from Ben Bernanke. Mortgage-backed bond prices touched the 200-day moving average yesterday morning and despite worse than expected inflation data that would ordinarily weigh on bond prices were […]
The Fed is at it once again slashing short-term interest rates with the hopes of helping the economy avoid a steep recession. Many people, including so-called “experts” in the media, believe the recent Fed cuts are the reason why mortgage rates touched 4-year lows on January 22nd. However, if you look at history the results […]
You Tube link to see rate update video: http://www.youtube.com/watch?v=rPx8IDngbYw There’s a lot to cover today. First off, The Producer Price Index (PPI) which was reported this morning came in much hotter than expected. Both the Core and headline readings on inflation at the wholesale level of the economy came in double expectations. The S & […]