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Yesterday’s Fed announcement sent stocks and bonds retreating

March 20, 2014; 9:40am Good morning! Interest rate trends: Today – Higher; 10 days – Flat; 25 days – Flat Interest rate recommendation:  Locking bias Mortgage bonds (MBS’s) are slightly worse this morning after yesterday’s selloff.  Yesterday’s Fed announcement sent stocks and bonds retreating, Ms. Yellens comments that QE3 could be finished by Fall and the Fed short term rates could rise within 6 months after that is the culprit for the increased interest rates today.  With this said, the trend will be higher for interest rates fo...

March 20th, 2014 Yesterday’s Fed announcement sent stocks and bonds retreating

Fed’s Monetary Policy announcement today at noon

March 19, 2014; 9:30am Good morning! Interest rate trends: Today – Flat; 10 days – Flat; 25 days – Flat Interest rate recommendation:  Cautious float Mortgage bonds (MBS’s) are flat this morning and not much movement in the markets ahead of the Fed’s Monetary Policy announcement today at noon.  Analysts are expecting another $10 billion in tapering and recommending floating into the announcement.  The economic news has not been impressive lately, so cautious float is still recommended.  Should the Fed’s do or say something une...

March 19th, 2014 Fed’s Monetary Policy announcement today at noon

MBS's are slightly better presently at +12bps

March 18, 2014; 10:19am Good morning! 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 rat...

March 18th, 2014 MBS's are slightly better presently at +12bps

The March NAHP Housing Market Index came in at 47

March 17, 2014; 9:29am Good morning! Interest rate trends: Today – Flat; 10 days – Flat; 25 days – Flat Interest rate recommendation:  Locking bias Mortgage bonds (MBS’s) are flat to slightly worse this morning as the stock market rally’s.  The Empire Manufacturing index came out where expected and better than last month.  The March NAHP Housing Market Index came in at 47, up from 46 last month, but 50 and above is considered good.  As mentioned last week, the improvement we saw in interest rates and pricing due to tension in the Uk...

March 17th, 2014 The March NAHP Housing Market Index came in at 47

Interest rates are really nice right now

March 14, 2014; 9:44am Good morning! Interest rate trends: Today – Flat; 10 days – Flat; 25 days – Flat Interest rate recommendation:  Cautious float Mortgage bonds (MBS’s) are flat this morning, holding on to yesterday’s surprising gains.  Interest rates are really nice right now so locking is good, but with weaker than expected economic news today we will maintain our cautious float recommendation.  The February Producer Price Index (PPI) falls to -0.2% vs the 0.2% expected, and the core PPI at -0.2% vs the 0.2% expected.  This is...

March 14th, 2014 Interest rates are really nice right now

U.S. Treasury is selling $13 billion 30 year notes today

March 13, 2014; 9:22am Good morning! Interest rate trends: Today – Lower; 10 days – Flat; 25 days – Flat Interest rate recommendation:  Cautious float Mortgage bonds (MBS’s) started the day out worse on the slightly better than expected economic news, Retail Sales came in only slightly better than expected and initial jobless claims came in lower, but MBS’s have rallied since and are currently +12bps!  With this current movement better, we will continue our cautious float recommendation and see where we will go.  The stock market was up ...

March 13th, 2014 U.S. Treasury is selling $13 billion 30 year notes today