Good Morning,
I trust that your Tuesday is off to a good start.
In the financial sectors, Mortgage Bonds are near unchanged this morning, after testing the 200-Day Moving Average yesterday before being pushed back down. Stocks also tested their 200-Day Moving Average yesterday, only to be knocked back down to their 50-Day Moving Average.
In the news today, Housing Starts rose a whopping 17% in May to come in better than expectations. In addition, Building Permits--which are a sign of future construction--also came in better than expected. These are good signs that the affordable home prices, tax incentives and low home loan rates are attracting buyers to the market.
Currently, I recommend floating your rate, as I monitor the market. If Stocks drop below their 50-Day Moving Average, Bonds could benefit. However, if Stocks bounce higher, it could be really tough for Mortgage Bonds to gain any headway. I will keep you posted.
In the meantime, I hope that you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.
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