Mortgage Rates Positive Today
Mortgage
rates opened positive today as it was the pendulum turn to go the other way as
it hit the ceiling on Friday. So far the
markets have ignored the Fed comments recently in terms of believing a rate
hike is emanate. Stocks continue to
slowly fall but with little volume and not much enthusiasm to sell so far. Markets believing Janet Yellen’s speech on
Friday may finally lead to something concrete - not likely though.
Yellen remains fixed on simple economic data to determine whether or not to increase the FF rate while the ECB, the BofJ and the Bank of England go in the other direction. Yellen does want to move the rate higher, she needs the cushion to cut them again if the economy falters next year - she needs ammo. Not news that the Fed and other central banks are in high concern mode trying to keep the economies of the world from slipping. Since the financial crisis of 2008 central banks have held economies in their hands and still do. The Fed and Yellen would like to let go a little but at every turn foiled by economic slowness.
Tomorrow July new home sales, Wednesday July existing home sales, and Thursday July durable goods orders numbers will be out. Three key reports that Yellen will take notice of prior to her speech on Friday. Also, we have Treasury Auctions this week.
Nothing new from the technicals, still neutral reflecting what markets are doing now, especially in the bond markets.
In summary, I continue to favor floating – but with extreme caution right now if you are not closing in the next 15 days. Bonds have managed to regain all of Friday's losses, but I did not quite see those improvements passed onto to the brokers for the consumer. We are all waiting for Friday as that may be the day this stalemate may break.
Yellen remains fixed on simple economic data to determine whether or not to increase the FF rate while the ECB, the BofJ and the Bank of England go in the other direction. Yellen does want to move the rate higher, she needs the cushion to cut them again if the economy falters next year - she needs ammo. Not news that the Fed and other central banks are in high concern mode trying to keep the economies of the world from slipping. Since the financial crisis of 2008 central banks have held economies in their hands and still do. The Fed and Yellen would like to let go a little but at every turn foiled by economic slowness.
Tomorrow July new home sales, Wednesday July existing home sales, and Thursday July durable goods orders numbers will be out. Three key reports that Yellen will take notice of prior to her speech on Friday. Also, we have Treasury Auctions this week.
Nothing new from the technicals, still neutral reflecting what markets are doing now, especially in the bond markets.
In summary, I continue to favor floating – but with extreme caution right now if you are not closing in the next 15 days. Bonds have managed to regain all of Friday's losses, but I did not quite see those improvements passed onto to the brokers for the consumer. We are all waiting for Friday as that may be the day this stalemate may break.
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