MBS prices are down a bit on the session (FNMA 3.50 -4.5/32) on decent data, as we still have no clear picture of resolution in the EU financial crisis. Initial Jobless Claims came in a bit better than expected (390k vs. 400k est.), the Trade Balance was more narrow than anticipate (-43.1B vs. -46B est.), and Import Prices were tame (-0.6%). Stocks are in positive territory today (Dow +66.15, S&P +4.90), after an awful day yesterday, which saw the down plummet almost 400 points, which was the worst single-session loss in two months. Ongoing issues in the EU really pushed the markets around yesterday, but news is light this morning. Expect any news out of Europe to spark movement. Absent a bombshell from the EU, we may see today’s auction garner some attention. Today, we have a $16B 30yr auction (11am MT). As we know, the Fed is trying to lower long-term interest rates though their Operation Twist, so this auction may tell us a bit about how well that plan is going. So far, the operation has failed to do much to lower mortgage rates.
Tomorrow, Friday, 11/11 has only Consumer Sentiment (est. 61.3), so expect the headlines and the equity markets to drive mortgage prices.
If your looking for a new loan, feel free to contact me at 702-370-2016 Greg Corpodian
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