Mortgage Secrets…Learn What the Experts Say

Rates are steady so far today.  There are no reports due out today, but there is a Treasury auction this afternoon.  In the news the Senate will be questioning the CEOs of Goldman Sachs, Bank of America, Morgan Stanley and JP Morgan as to how the financial crisis occurred.  All of these companies have had enormous profits recently.

Bonds are starting the day off good so far, but could quickly change.  Stocks have been trading lower, with a disappointing 4^th Quarter earnings from Dow component Alcoa.  Another Treasury auction is due out this afternoon. 

So far this morning Bonds have been trading higher and are pretty active.  No reports are do out today, however the Treasury will be auctioning $84 Billion in new debt supply, which could add pressure on Bonds if the results are poor. 

Mortgage Bonds have opened lower this morning, but moved higher before dropping back down.

 The ADP Employment Report came out and is the best reading since March 2008.  The Institute of Supply Management Service Index was reported as expected.  Today’s news points in the direction that the labor market is recovering from its worst levels, however is still somewhat weak. 

The Feds purchased $9.3B in Mortgage Backed Securities last week.  The Feds are buying fewer Mortgage Bonds and plan on wrapping the program up in March.  Also, Dennis Lockhart, the Atlanta Fed President, will be speaking later today which could move the markets.

Rates are steady so far today, but may change after the Treasury’s announcement of the results of today’s $42 Billion in 5 year T Notes.  Stocks have moved higher this morning. 

The Case Shiller Home Price Index was unchanged in October after four consecutive monthly gains. 

Bonds are trading lower so far this morning, with no economic reports due out today.  The Treasury will be auctioning $118 Billion in T-Notes this week starting with $40 Billion in 20- year notes today. 

Personal Spending, Personal Income and The Core Personal Consumption Expenditure Index all came in weaker than expected this morning.  The Personal Savings rate stayed the same.  The Treasury is auctioning off $118 billion of 2, 5 and 7- year notes next week.  No other data is due out today.

Rates are lower today after the Initial Jobless Claims rose higher than what was expected.  Yesterday, the Federal Reserve restated that its Mortgage Backed Security Purchase Program will end in March.  No other economic reports are due to be released today.

Rates are higher this morning after the release of the Producer Price Index, which measures inflation, came in higher than expected.  Also, the Empire State Index of manufacturing in New York came in with the biggest monthly decline in December.  In better news, Industrial Production increased in November by the most in three months.