Mortgage Rates Struggle Again
Mortgage rates may have been feeling the love as I mentioned yesterday in my report, but unfortunately, the love that may be in the air this Valentine Weekend was not there today for the mortgage bonds. What started as a good day struggled badly in the afternoon.
This week had little serious economic data. In Europe, they are still facing increased likelihood of deflation unless the QE from the ECB takes hold - so far the ECB has been impotent in boosting growth.
Next week the markets will be closed on Monday for Presidents’ Day, but the other four days will be packed with more data to make up for it. Also, the FOMC minutes are likely to be interesting with details on the discussions about when the Fed will begin increasing rates. Yellen will be testifying the following week at the Senate and House so the minutes are considered dated and may not get the focus they usually do.
In summary, it seems the bond market selloff has run out of steam, which is my hope at least. However, hope is not a good rate lock strategy. Rates remain near long term lows so I would feel pretty good about locking at these levels. Greek debt negotiations and the Ukraine Russia cease fire continue to have the potential to move markets, I would keep that in mind as a potential wild card especially with US markets closed Monday. Using recent lows as a gauge there is not a great deal to be gained by floating, unless your crystal ball is better than mine. Remember, I told you mine was broken last week as the past two weeks have played havoc on all of us.
This week had little serious economic data. In Europe, they are still facing increased likelihood of deflation unless the QE from the ECB takes hold - so far the ECB has been impotent in boosting growth.
Next week the markets will be closed on Monday for Presidents’ Day, but the other four days will be packed with more data to make up for it. Also, the FOMC minutes are likely to be interesting with details on the discussions about when the Fed will begin increasing rates. Yellen will be testifying the following week at the Senate and House so the minutes are considered dated and may not get the focus they usually do.
In summary, it seems the bond market selloff has run out of steam, which is my hope at least. However, hope is not a good rate lock strategy. Rates remain near long term lows so I would feel pretty good about locking at these levels. Greek debt negotiations and the Ukraine Russia cease fire continue to have the potential to move markets, I would keep that in mind as a potential wild card especially with US markets closed Monday. Using recent lows as a gauge there is not a great deal to be gained by floating, unless your crystal ball is better than mine. Remember, I told you mine was broken last week as the past two weeks have played havoc on all of us.
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