Daily Market Watch
MICHAEL TORRES
Sr. Mortgage Loan Officer | MLO 539674 | Residential and Commercial Real Estate Financing | Class A CDL Driver
By Michael Torres and PMR Loans Sept 26 2017
Pricing is mostly level with Monday’s closing prices.
è MBS and Treasuries are holding yesterday’s gains for now as investors weight the North Korean threat, central bank policy, the German election and our ongoing political saga and the chances of tax reform.
è After spiking up to our near term ceiling of 2.28 last week, the 10 YR has been attempting to inch back down hitting as low as 2.214 yesterday. We’re slight up this morning inching around 2.241 right now…
è Stock Market Indexes are positive this morning as the tech sector recovers some recent losses.
è North Korea says it has the right to shoot down US Jets. Some ponder the likelihood of war by miscalculation. Trumps twitter rhetoric continues while diplomatic efforts are happening behind closed channels.
è A third Republican Senator has come out against the latest attempt to repeal and replace Obamacare virtually sealing its fate for defeat.
è Meanwhile Puerto Rico remains a disaster area following Hurricane Mariah and the Trump administration feels the heat over its response compared to Harvey and Irma.
è Yellen and several other Fed officials will be speaking today
è In news released today: Consumer Confidence for September fell to 119.8 from 120.4 in August. New Home Sales fell 3.4 percent in August versus expectations for a gain of 3.3 percent.
è In more news: The Case-Shiller US National Price Index, covering all 9 US census divisions, reported a 5.9 percent annual gain in July, up from 5.8 percent from June, beating the expected 5.7 percent increase.
è On tap tomorrow: Mortgage market data, Durable Goods and Pending Home Sales. Friday brings the PCE and another look at inflation numbers.
Top 2 boxes: 5 days of MBS prices on left. 1 year of the benchmark 10 Year Treasury Yield on Right.
Bottom 2 boxes: 3 months of MBS prices on left. 1 year on right. (majority of current locks are put into this MBS)
Red line is 25 day moving average. Green line is 50 day moving average. Purple line is 100 day moving average
Remember: the higher the price the lower the rate so higher is better for rates! (Pricing is in 32nds so -08 = .250 in price)