February 25th, 2014
February 25, 2014; 9:17am
Interest rate trends: Today – Lower; 10 days – Higher; 25 days – Flat
Interest rate recommendation: Cautious float
Mortgage bonds (MBS’s) are improving this morning on mixed economic news. Home values continue to rise, but Consumer Confidence came in lower than expected. Today’s Treasury auction should be good due to the short 2 year notes being auctioned. While MBS’s are doing well, we will change to a cautious float recommendation. Interest rates came out better this morning than yesterday and technically MBS’s are above both layers of resistance so it is possible there will be some pressure to go worse this afternoon and thus the “Cautious” float. Those who are conservative, may want to take today’s gains in interest rates and lender credits and lock. Those who can stand a some risk will want to see where this move better this morning will take us. Have a great day!