Mortgage Rates Holding Steady

We have a huge week for economic data with the focus squarely on ISM and employment data. But our domestic data is currently overshadowed by what is going on in the Ukraine and that is likely to continue to be a supportive factor for pricing all week.

The market is pricing in some reductions in the Non-Farm Payroll (NFP) data, primarily due to the weather and that is providing a lift for bonds. But if we get some stronger than expected ADP, ISM or NFP - them MBS will move into a lower channel.

Mortgage Rates are holding steady at this time.  In this morning's news, we saw Personal Income and Spending improved higher than what was anticipated. This better than expected economic news is negative for bonds and has moved MBS lower from our early morning highs.

Once again, last week's better than expected Chicago PMI reading was a great preview of today's ISM data. ISM Manufacturing was much stronger than expected and certainly didn't show any signs of a slowdown due to weather. The ISM Prices Paid also rose which is inflationary in nature. This was also negative news for bonds.

Construction Spending: Was much better than expected.  Again, another negative for bond prices.

Today's economic news data is clearly negative for Mortgage Backed Securities (MBS) as we have seen them sell off from this morning's highs.  Unfortunately, this will probably hold its levels due to the issues in the Ukraine which has the potential to offset this morning's data and will provide support all week long.  This is the reason why I have recommended to cautiously float instead of locking. 

Remember, if you want to know the benefits of locking your rate today versus floating, simply give me a call at 314-744-7806 or visit me on my website at www.CallTheMoneyMan.com   I have access to real time Wall St. data and instant market alerts with breaking news that I monitor throughout the day to assist us on making the informed decision.