Good Morning,
Its a warm, muggy day here in Central Iowa. I hope that this note finds you well and that your day is great wherevr you may be.
In the Markets today, Mortgage Bonds started out the morning down, but have since climbed into positive territory. Overall, however, prices still remain just below a stiff ceiling of resistance at the 200-Day Moving Average.
In other news, Existing Home Sales came in below expectations. Also in the news, the Fed Meeting begins today. Although the Fed Funds Rate most likely won't change as a result of the meeting, there is speculation that the Fed will buy more longer-term Treasuries, which may jumpstart the cycle needed to eventually bring Mortgage rates down.
For now, I recommend floating as we watch to see if a continued slide in Stocks can help Bonds improve or if the Treasury Department's auction of 2-Year Notes later today will pressure Bonds lower. I will certainly keep you posted as things develop. In the meantime, I hope you have a great rest of your day. If there is ever anything that I can do for you, please let me know.
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