March 18th, 2014
March 18, 2014; 10:19am
Interest rate trends: Today – Slightly lower; 10 days – Flat; 25 days – Flat
Interest rate recommendation: Cautious float
Mortgage bonds (MBS’s) are slightly better presently at +12bps, earlier today they were worse due to tension easing in the Ukraine and the stock market regaining what it lost last week. However, since then MBS’s have improved on worse than expected economic data. Housing starts fell for the 3rd straight month, Inflation came in as expected and slightly lower. Interest rates came out roughly the same as yesterday, only slightly worse in some areas, but we expect to get some back today as long as MBS’s continue to hold current gains. We thus have a cautious float until lenders reprice for the better, which is expected if MBS’s hold. Now MBS’s are +15bps. Have a great day!