Mortgage Rates Higher Following Last Night's Speech

Mortgage rates are moving higher so far today.  After we saw the MBS market down and the 10yr yield increase yesterday, the tone was set to see what President Trump was going to state yesterday in his speech.

President Trump’s speech to Congress last night did not have anything new but emphasized changing healthcare, a call to unity in the wake of attacks on Indian nationals in Kansas and the desecration of Jewish cemeteries: “We are a country that stands united in condemning hate and evil in all its forms.” $1T in infrastructure spending, tax reforms, re-working trade deals. His tone, much more presidential than his previous combative rhetoric. He stuck to his prepared text, relaxed his one liners. This morning the stock market soaring, more because of his delivery rather than anything new from his campaign. His tax cut goals and healthcare face resistance with some Republicans and most Democrats; he will need all Republicans and at least eight Democrats in the Senate to achieve his plans as he currently is proposing.

January personal income and spending, both expected to be up and generally in line with estimates.  There was no big movement in pricing when reported as the MBSs and 10yr were off their marks in a negative manner.

February ISM manufacturing index increased to the highest since August 2014.  The index has beaten the consensus the last five reports and by a sizable average of 9 tenths in the last three reports. New orders have posted back-to-back 60 scores with production and employment likewise moving higher. January construction spending did come in a little lower than anticipated.

After the extremely positive economic data denoted above and President Trump's comments about $1 Trillion in stimulus, mortgage rates are moving higher with a good deal of volatility.