Mortgage Bonds Quiet This Morning

Mortgage rates are unchanged this morning.  Starting this morning the bond and mortgage markets were slightly better but overall quiet.  Even the US stock indexes prior to and after the open also has been quiet.

June housing starts were better than forecasts - +4.8% against +0.5% expected. According to Econoday for the second quarter as a whole, starts averaged 1.160 million for a 0.8 percent gain from the first quarter with permits averaging 1.140 for a fractional decline but showing building momentum through the quarter. Housing is not on fire but it may be making the difference for the economy as a whole, helping it hold in the modest growth range.

Nothing left for scheduled data today. German business confidence declined today on the UK vote last month. The European Commission, one of many commissions that have sprouted in Brussels, saying today that the GDP may decline a half of a percentage point because of the UK. Here in the US markets have completely discounted the exit vote with the belief now that it will not impair US growth. Makes some sense because it is likely going to take a year or to the unwind the Brits, in the meantime investors will have to focus on each of the events that will be unfolding over the 2 year maximum time once the UK actually invokes article 50 in the EU charter.

Given the lack of economic data today, I am not expecting much movement in mortgage rates today, or for that matter, the rest of the week.  Floating can be an option, but the risk right now is too great as what we saw late last week with the small increase to where we are today.  The 10yr is holding steady at 1.56%, so locking is the smart move, especially if closing in the next 30 days.