Monthly Archives: May 2009

Fed Clarifies MBS Purchase Policy

As the pressure for higher mortgage rates has increased in recent weeks, investors have speculated that the Fed would step in to “defend” certain interest rate levels, but that hasn’t happened. This week, Fed officials explained that their mortgage-backed securities … Continue reading

With the “game” being played out between the Fed (Quantitative Easing) and the market (inflation, fixed income downgrades, and potential treasury bubble) the outcome is unknown yet the stakes are high

As we close the book on a holiday shortened trading day, the picture looks much the same as yesterday.  Fears of U.S. debt being downgraded, following a similar fate in the U.K., has traders on edge with many sellers and … Continue reading

Continued selling in a thin market has taken the yield on the 10 year note right back to the highest level in months (3.37%)

Continued selling in a thin market has taken the yield on the 10 year note right back to the highest level in months (3.37%).  The selling has come out of thin air, with mortgage bankers selling supply into the down … Continue reading

Illiquid market trading is pushing the market around this morning

Illiquid market trading is pushing the market around this morning.  We started the day with the 10 year note up 8/32’s, trading at a yield of 3.17%.  However, within the last few minutes, traders have turned sellers in treasuries and … Continue reading

Maybe a price change for the better in the making!

Just off the wire, the FOMC sees significant risk to the downside within the economy and at the same time, bumping their forecast of unemployment, now going to 9.0% to 9.5% and GDP coming in at minus 2% for the … Continue reading

April Housing Starts fell to a new record low this morning, down 12.8% to 458K units

April Housing Starts fell to a new record low this morning, down 12.8% to 458K units.  The April decline was due in most part to a 42% drop in multi-family housing units.  Single family homes were not much better, falling … Continue reading

Expect mortgage pricing to hold if we can stay below 3.25% on the 10 year note

It’s been a busy Monday in the market.  Stocks caught an early bid on the heels of some upgrades on financial stocks and a better than expected earnings report from Lowe’s.  The only news of the day came via the … Continue reading

Given the high profile data this week, mortgage pricing and note yields have done well

CPI, inflation at the consumer level, hit the tape unchanged on the “headline” number and up .3% on the core index (ex-food and energy).  The print was close to expectations with the core level just a touch higher than predicted.  … Continue reading

Retail Sales Decline

After several weeks of improving economic forecasts, weaker than expected economic data this week tempered some of the optimism for a near-term recovery, which was favorable for mortgage markets. Tame inflation data and sustained Fed purchases of mortgage-backed securities (MBS) … Continue reading

Keep an eye on stock market direction as mortgage pricing will trade just the opposite

The menu today features a bowl of bank stocks coming to market, all in an attempt to take care of their stress test needs, oversold conditions in treasuries due to last week’s plate full of auction paper, and a touch … Continue reading