Good Afternoon,
I hope your Monday is going well for you. 35 days remain in the First Time Home Buyer Tax Credit -- its getting down to crunch time!
In the markets, Mortgage Bonds were lower this morning, following through on Friday's weakness and responding to a move higher in Stocks. While Stocks are higher due to good earnings reports, it is important to understand that positive earnings numbers gained by cutting jobs are not really positive for the economy, nor are these gains sustainable.
There are no economic reports set for release today, but later this week we’ll have reports on housing, consumer demand, economic growth, inflation and the labor market. In addition, there will be more Treasury auctions later this week as well.
The Fed’s Treasury buyback program comes to an end on Thursday. Without the Fed buying support helping to provide demand to sop up some of the massive supply…rates will continue to edge higher back to more "historically normal" levels.
Bonds have fallen below two support levels. I recommend carefully floating, but should Bonds drop lower I will let you know if we need to lock. In the meatime, 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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