Mortgage Rates Unchanged

Mortgage rates were very close to unchanged despite market volatility surrounding the release of today's GDP figures.  Is it good news that Commerce revised Q1 growth from -0.2% to +0.6% or bad news that Q2 was less growth than estimates (+2.3% against forecasts of 2.9%)?  Given the lackluster reaction to the report this morning looks like no one is really sure. Although it is now old news, the annual revisions going back to 2012 - the growth over the last three years was not as good as previous data indicated.

Greece has not made the headlines recently after the Greek parliament voted to accept creditor demands negotiated by Prime Minister Tsipras.  But it might not be all sweetness with Greek politicians.  There is some behind the scene issues that really have not surfaced to national news – so stay tune.

I am still holding a slight bullish technical bias. Not much price movement though in MBS prices or treasuries. That we are holding 2.30% on the 10yr note remains significant but the momentum is slowing. Next week the July employment report on Friday, in the meantime personal income and spending, both July ISM indexes (manufacturing and services), construction spending, and factory orders. By the end of next week either the bullish bias will be confirmed with decline in the long end of the curve or our work will turn bearish. Did you know home prices in many of those ‘hot’ markets are no declining? 

In summary, it looks like bonds are getting some month end love today. If you have been floating, I think I would continue to see if the month end buying of bonds continue. It is always risky to float, so only float if you can afford to be wrong.