Good Morning,
I hope that all is well for you and that your Thursday is already off to a great start.
In the markets today, Mortgage Bonds are down a bit, but remain above a triple-decker floor of support. Despite appearing to be overbought, the bias for Stocks is higher for now, which is a drag on Mortgage Bonds.
In the news, Initial Jobless Claims were reported in-line with expectations, but are still high. Continuing Claims were down, but this could be a reflection of unemployment benefits running out for people. Also today, Existing Home Sales came in better than expected and increased for the third time in as many months. Even better, the supply dropped to its best level in over a year, showings signs we are in a bottoming process.
Overall, excess supply of Bonds has been the nemesis of Mortgage Bonds and was the catalyst for the sharp rise in rates in May and early June. For now, I recommend LOCKING YOUR RATE, as next week's Treasury auction, the favorable economic data and the rally in Stocks are all pressuring Bonds and will probably continue to do so for some time.
If there is ever anything that I can do for you, please let me know. Also, don't forget to follow me on Twitter @MortgageMinute in order to access the latest information.
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