Tag: july 29 2010 MBS

Rate Update July 30, 2010

Posted on by Evan in Rate Update

Mortgage rates are unchanged today.

Stocks have opened lower on weak economic and earnings data, which should help mortgage rates.  The Commerce Department reported this morning that 2nd quarter GDP growth was more sluggish than analysts had expected.  Furthermore, they went back revised previous GDP growth figures lower for the past 3 years.

Also hitting stocks and helping mortgage rates was weaker than expected earnings reports from Chevron and Merck.

Mortgage-backed bonds (MBS’s) are rallying this morning pushing prices into an “overbought” level.  We will shift our outlook to floating for now.  But, next week brings a busy economic calendar so it may not last long.

Current outlook: floating

Rate Update July 29, 2010

Posted on by Evan in Rate Update

Mortgage rates are unchanged today.

Stocks are trading higher in early morning trading, albeit on light volume.  Equities received a boost from better-than-expected earnings from Exxon Mobil, encouraging news from Disney, and better than expected jobless claims figures.

On the flip side mortgage-backed bonds (MBS’s) haves started the day weaker.  The main focus for interest rate watchers today is the US Treasury’s auction of $29 billion in 7-year notes.  Yesterday’s 5-year auction went very well so we don’t expect any major problems.

From a technical perspective MBS’s have traded within a tight trading range for 20 of the past 22 trading days.  Anytime we see this for a prolonged period we begin to get nervous about a breakout.  In my opinion rates have only one direction to go at this point.

Current outlook: locking