Last week MBS’s traded in a tight range and we avoided the major swings in pricing that we had in prior weeks, keeping mortgage rates fairly steady.
We had light week in terms of the number of economic releases that hit the market and reports that were released were a mixed-bag. ISM Services came in much stronger than expected, Wholesale Inventories were disappointing, and the Initial Weekly Jobless Claims were very close to market expectations.
The economic data didn't really drive our pricing last week. Instead it was Treasury auctions and Fed speak that were the major force in bond trades.
Talking Feds: We had six different speeches by different Federal Reserve members, but few of them were voting members. Essentially, they all said the same thing: 1) the Fed needs to cut back their monthly bond purchases of Treasuries and mortgage backed securities, 2) it will most likely happen in 2013, 3) they need to see more economic improvement from the second half of this year before they move to taper and 4) they would not give a specific date for the first taper.
The fact that there was no specific date for the Fed to begin tapering has kept MBS’s at an elevated level which has kept rates low.
This
week is big on economic data, but it won’t start until tomorrow and there will
be no treasury auctions this week.
MBS are moving upward this morning on speculation over the German GDP data due out this week. We only have one economic report this afternoon with our U.S. Treasury budget.
The rest of the week is packed with data about inflation levels (PPI and CPI) these are most likely going to continue to show very tame inflation levels on a month-over-month basis.
Tuesday's Retail Sales report and Friday's Consumer Sentiment Index will be the biggest reports of the week.
There may be some benefit to floating your interest rate and watching the market carefully. However, this is really a case by case decision and should be discussed with your Mortgage Professional, who will monitor real time market data to stay a step ahead of lender reprices and to cash in on market gains that help mortgage rates.
MBS are moving upward this morning on speculation over the German GDP data due out this week. We only have one economic report this afternoon with our U.S. Treasury budget.
The rest of the week is packed with data about inflation levels (PPI and CPI) these are most likely going to continue to show very tame inflation levels on a month-over-month basis.
Tuesday's Retail Sales report and Friday's Consumer Sentiment Index will be the biggest reports of the week.
There may be some benefit to floating your interest rate and watching the market carefully. However, this is really a case by case decision and should be discussed with your Mortgage Professional, who will monitor real time market data to stay a step ahead of lender reprices and to cash in on market gains that help mortgage rates.
Today’s Real Estate Report can be viewed at: http://www.newsletterproonline.com/newsletter/originationpro/?newsletter=true&nid=472&uid=10671
Below is an article by Mortgage News Daily about
President Obama calling for the gradual elimination of the Fannie Mae and
Freddie Mac programs:
Contact us today for a free rate quote and GFE:
-Michael Corboy
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