New Home Sales (new construction) numbers being higher than expected.

February 26th, 2014

February 25, 2014; 9:17am

Good morning!

Interest rate trends: Today – Flat; 10 days – Flat; 25 days – Flat

Interest rate recommendation:  Cautious float

Mortgage bonds (MBS’s) are improving slightly this morning, but mostly flat due to New Home Sales (new construction) numbers being higher than expected.  Also holding MBS’s from getting much better is the $35 billion Treasury auction today.  If the auction is well received, we might receive a boost to Mortgage bonds this afternoon.  The Mortgage Bankers Association Purchase index (loan applications for home purchases) has fallen to its lowest level since 1995.  Interest rates stayed mostly the same and we continue our cautious float recommendation for those who can handle some risk.  Otherwise lock at these improved rates and enjoy!  The next Market News email will be on Monday March 3rd, 2014.  Have a great day!  


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