Corporate earning woes continue on Wall Street today with Caterpillar cutting its total year projections in half and a number of regional banks; Market Street, Huntington, Northern Trust, and Regions providing less than stellar results. Treasury Secretary Geithner is on the hill, talking about most banks being well capitalized but that economic uncertainties and the impact of “legacy assets” (sick and hurt paper) has created an environment of great uncertainty. Early trading pushed stocks lower and bonds/mortgage backs higher. Currently, that trend is reversing with the 10 year note now off 3/32’s and MBS unchanged. Since we priced up 4/32’s on the 4.50% FNMA coupon, a little pricing pinch is right around the corner. Technically, the buying today failed to build on a minor probe above the trend line. Selling however has been restricted to the lower half of yesterday’s highs, putting the market in more of a “neutral” mode. Keep one eye on stocks (now up 54 on the big board) as mortgage pricing sits on the other side of the teeter totter.
Keep one eye on stocks (now up 54 on the big board) as mortgage pricing sits on the other side of the teeter totter
About the Author: Max Leaman Austin Mortgage
Great Rates, Low Fees, Close on Time® – (800) 301-3405 Since 2001, Leaman Team has helped clients to purchase, refinance and renovate. The biggest distinction between lenders is their honesty, customer service, and ability to close on time.
September 28, 2018
September 27, 2018
April 27, 2017