Last week MBS lost 49 bps, causing 30 year fixed rates to move higher. This ended the two week bond rally. MBS could have sold off even more, given the positive news from the Durable Goods Orders, which was much stronger than expected and CSI rising. Existing Home Sales missed market expectations, but New Home Sales enjoyed gains in unit sales and price increases.
MBS would have lost more ground had it not been for the WSJ article speculating that the Fed would change the language at this week's FOMC meeting to calm the markets. They are likely to leave the Fed Funds rate alone, but eventually, they will have to start to pull back on bond purchases which will have a negative impact on mortgage rates.
This week is a massive week for economic data, with the two main events being the FOMC meeting on Wednesday and Friday's Non-Farm Payroll report. Each report could result in large swings in the market place.
This morning the ISM Non-Manufacturing report came in better than expected which will apply pressure to today's pricing.
Below, please find two Real Estate Reports:
http://www.newsletterproonline.com/newsletter/originationpro/?newsletter=true&nid=468&uid=10671
http://www.newsletterproonline.com/newsletter/originationpro/?newsletter=true&nid=470&uid=10671
Contact Specialty Financial Services, Inc. today for your free rate quote and GFE and position yourself to take advantage of any market improvements and avoid and loss in rate.
www.specialtyfinancialmtg.com
- Michael Corboy
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