Inside the Mortgage World

This morning, the entire Bond market, including Mortgage Bonds, are contending with the "I" word...inflation.   It may sounds a bit odd, however the traders in the pits have recently been talking about Obama's stimulus and rescue packages and the reemergence of inflation should they have a positi...

The morning has been a rocky start for Mortgage Bonds.  While Bonds are attempting to nudge higher off of the Rising Trendline, the volatility has picked up on disappointing economic data as well as reacting to the early sell off in Stocks due to ugly corporate earnings reports. The disappointing...

Yesterday, the stock market dropped sharply with its worst-ever performance on an Inauguration Day.  More often than not, the stock market has declined as a new presidential term is greeted. What may be surprising to some is that the Bonds didn't benefit.  Trading was thin as Washington was essen...

After being closed for 3 days, there are no fireworks for Mortgage Backed Securities (MBS) this Inauguration morning.  In fact, they are lacking any enthusiasm as they opened lower... below the 25 day moving average and support, plunged 38 basis points searching for the next support level, and th...

It's an action packed morning - already!  The headlines were coming in well before 7 am screaming the news of more bank challenges.  The effect on our Bond Market?  Not pretty.  Bonds are taking it on the chin by opening lower and still trading at their worst levels of the day.  In banking:  •·  ...

Jobs are on everyones mind.  This morning Initial Jobless Claims (people filing for unemployment) rose 54K last week.  The four-week average fell by 8,000, but keep in mind that this is still 55% higher than the average during the same period last year.  Inflation must have fallen off a cliff bec...

Shop til you drop...and drop they did. Retail Sales for December decline a dismal 2.7% and far worse than expectations.  Excluding the decline in auto sales, this is its biggest drop ever, falling 3.1%.  This is the six consecutive month retail sales have fallen making it the longest decline on r...

This morning mortgage bonds opened lower (worse) and are sitting on a floor of support.  Over the past few days, the bond market has lost 78 basis points and rates have slightly worsened.  The bond market trend continues stay within a wide trading range in a mostly sideways pattern. Big Ben Berna...

It's all over the news; the benchmark mortgage rate continues to fall.  Each week Fannie and Freddie report the prior week's average.  Yesterday Freddie reported the average 30-year fixed rate at 5.01% with an average of 0.6% in discount points for the week.  Keep in mind that rates fluctuate con...

This morning we are off to the races as the Fed begins buying Mortgage Backed Securities (MBS).  The Fed has endorsed a big stimulus package in their efforts to fight the current recession here at home.  Each Thursday they will announce the results of their efforts.  Their plan calls for the purc...