New Home Sales declined in February

March 25th, 2014

March 25, 2014; 9:05am

Good morning!

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

Interest rate recommendation:  Locking bias

Mortgage bonds (MBS’s) are flat presently, after starting out this morning worse.  New Home Sales declined in February, but Consumer Confidence rose to the highest level in 6 years.  The data is capping interest rates and helping the stock markets presently.  Technically MBS’s have tried to, but been unable to, break through resistance level #2 and stay there.  We therefore maintain our locking bias recommendation today.  The U.S. Treasury will hold another auction today, tomorrow and Thursday, which will likely be headwind for interest rates.  Tomorrow in economic data, we will see Durable Goods Orders and on Thursday GDP.  Both have potential of moderate impact.  Have a great day! 


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