Mortgage Rates Up a Bit

Mortgage rates moved higher today, but with the latest trend in the narrow trading that has occurred the past several weeks, any significant movement would seem to be huge – but in all reality, the movement was substantial but small.  These changes were more likely seemed in the form of the upfront costs/credits associated with any given rate quote. 

NASADAQ took a hit today on weakness at Facebook and Apple. The DJIA continued to improve, S&P generally unchanged. The S&P retch sector index dropped 2.9% the largest drop since last June. Previous tech drops were short-lived and were followed by record highs. Q3 GDP came in as expected, +3.3%. October NAR pending home sales +3.5% better than 1.0% that was thought.  

Tomorrow key data points will be October personal income and spending, income and spending both thought to be up 0.3%. The key part though is the personal consumption expenditures expected +0.1% after increasing 0.4% in September. Also, we get Weekly jobless claims and the November Chicago purchasing managers index.

No new news on tax cuts today – but a Senate vote still believed to happen tomorrow. Unless Republicans have the votes, there will not be a vote. The tax bill has had a pretty consistent relationship with rates.  The more likely it looks, the higher rates go.  If it passes, rates would probably continue higher.  That keeps the potential for volatility quite high in the coming days, especially considering the other potential market flashpoints including a possible government shutdown.

In summary, bonds regressed today, as current Fed Chairwoman Yellen voiced concerns over national debt expansion.  My pricing was roughly off, but hardly a huge swing - it does mark the first day since the 17th we've lost ground.  With potential tax reform approval looming in the Senate, I have been playing conservatively here and locking new applications closing within 30 days.