Mortgage Rates Stalled - MBS Under Pressure

Mortgage Rates have stalled as we have seen for the third straight day Mortgage Back Securities (MBS) start the day under pressure which means that the rates are moving back up.  Even though the roller coaster is going up and down during the day, we are seeing the climb might be coming back, especially in light of the ADP Report today.  The number they reported was very close to market conditions, and even though it was a bit lower, it was viewed as a good reading. Of course, all of the nays Sayers are stating that ADP does not and cannot determine the effects on what the weather has on these numbers as accurate as the number we will get on Friday, but any signs positive in nature is playing havoc on the entire economist.

Before the number hit, the 10yr Treasuries were below the close of yesterday at 2.60%, but quickly reverted to 2.63%, with the MBS giving back some of its losses before the number retreating to even. Essentially, the traders feel good about the number and are anticipating the estimates of 185K on Friday is an accurate assessment.

In other news in Europe, which has had an effect on the US Markets, German government bonds rose, pushing 10-year yields to a six-month low, as a report showing euro-area retail sales fell more than economists predicted buoyed the case for more European Central Bank stimulus.  The European Central Bank will meet tomorrow and most economists think they will hold their key interest rate at 0.25%. The market will be paying very close attention to comments from ECB President Drahi on any new QE announcements.

If there are any issues you might have in regards to your financing, please give me a call at 314-744-7806, or visit me at my website at www.CallTheMoneyMan.com.