Mortgage Rates Show Little Movement

Mortgage rates had very little movement today with bonds or MBSs even though pricing was a bit better after a long three day layoff – which usually happens in our market.  Surprising, there was nothing much in the stock market either. A couple of Fed officials speaking but I will not use any ink on them because there was nothing new, just more of the same - maybe we will, maybe we will not…

Equity markets have had a nice 10 days recently, today very quiet ahead of bank earnings this week, as everyone out there is expecting soft earnings. Also, after a week or more of no key economic measurements - tomorrow and the rest of the week markets will have something to digest. September retail sales, September PPI and August business inventories will be released tomorrow.

There are a number of issues coming in from Europe with Germany and China leading the way.  In the meantime here in the US investors and money managers as well as some Fed officials continue to say any global slowing can be withstood in the US.

The 10yr note at 2.00% is holding off any major improvements in the bond and MBS markets - on the other side the 10yr is finding strong support at 2.15%. Currently I do not see any reason to be floating now in the short term as there is not much to gain, also though not much to lose as long as the current range exists.

In summary, rates have managed to regain some of the losses from last week.   The benchmark 10 year was unable to break below key level of support at 2.00%.  Since we are very close to the low end of the range, I think locking here is a prudent decision in the short term of 15 days.