Mortgage Rates Had a Calm Day

Mortgage rates had a far calmer day compared to yesterday's volatility.  Morning hours brought stronger economic data.  The stock market continues to rally on the FOMC meeting yesterday that a rate increase is not a done deal. It is an on again off again just as the Greek mess is these days.

News on Greece is hard to understand as everyone in the situation is talking today. Not going there now because it wastes all of our time, at least today. The world still is uncertain about the outcome, ECB talking tough, the IMF standing its ground, the Greeks stubborn and unable to meet conditions that continue to be lessened every time the final hour approaches. How in the world can such a minimal country cause this much angst and tension? Years ago we wrote that the creation of a common currency was not a good idea - different cultures and different incentives never seem to work out. Now it is playing out in complete chaos for markets and economies. Every day it is something different, and I am tired of it.

There is no data tomorrow, but it is quadruple witching with contracts and options expiring. Of course there is Greece, with another round of sound bites.

The bellwether 10yr remains well tethered in its new range unable to break and hold below 2.30% area - once it does look for a sizeable move lower in rates. On the other side, 2.50% is where the note has found support, a big move from here for MBSs to find support. The work remains bearish, as I cannot go against it in terms of floating.

In summary, mortgage rates remained at the same levels today. The lack of improvement in rates after the Fed, yesterday, is rather concerning as the current trend appears to be towards higher rates. Until there is an obvious change of direction, and there certainly has not been one yet, I would lock any and every loan at your first opportunity.

I will not have a report on Friday as I will be out of the office at my 40th High School Reunion.  I hope to have a report over the weekend to get everyone back to speed as I anticipate a quiet ride ending the week.