Mortgage bond prices closed slightly higher Friday afternoon applying downward pressure to mortgage rates.
In news released at the open, Q3 advanced gross domestic product rose 2.0%. That data was as expected. The only way we will ever recover from the Great Recession is to have GDP continue to increase. However that said, as GDP increases so will rates because an expanding economy can be inflationary.
In other news, the employment cost index rose 0.4%. Traders were expecting ECI to rise 0.5%. Lastly, consumer confidence stood at 67.7K vs. the expected 68.00 analysts had estimated. All in all the data was as expected.
Next week is going to rock and roll. Monday brings income, outlays, core PCE and IMS data, the election on Tuesday, Fed meeting Wednesday and the employment report Friday. Yikes!
9 am – Mortgage bond prices opened higher Friday morning adding to the gains seen Thursday afternoon.
In news released at the open, Q3 advanced gross domestic product rose 2.0%. That data was as expected. The only way we will ever recover from the Great Recession is to have GDP continue to increase.
In other news, the employment cost index rose 0.4%. Traders were expecting ECI to rise 0.5%.
Traders are now waiting for stocks to begin trade at 9:30 am ET and for the release of the University of Michigan consumer sentiment data set for 10:00 am ET.
Mortgage bond prices remain higher Thursday morning erasing the losses seen Wednesday afternoon and more.
In news released this morning weekly jobless claims stood at 434K and continuing claims stood at 4,356K. Analysts were expecting claims at 458K and 4,450K respectively. That data was better than expected and not bond friendly.
Traders will spend the day watching stocks as they wait for the results of Treasury auction of $29B in 7-year notes. Auction results are expected by 1:15 pm ET.
Third quarter GDP data will be released tomorrow morning.
I recently sat down with Tom Brunette of MetLife Auto & Home and was suprised at how much I learned about insurance. MetLife Auto & Home has really low auto insurance rates and great features included with every policy. One benefit to insuring with Met is their no-deductible glass replacement. This covers ALL of the glass in your car. They will replace or repair ANY of the glass in your vehicle that gets damaged or broken. Sandy roads are right around the corner! This might be just the kind of benefit you’re looking for to avoid paying for a chipped or cracked windsheild… You can call or email Tom Brunette any time for a free quote. email@example.com or 207-232-3295.
Mortgage bond prices opened lower Wednesday morning addling to the losses seen Tuesday afternoon. Rates are under pressure from strong economic data released this morning.
In news released at the open, orders for durable goods rose 3.3%. Traders were expecting orders to rise 1.8%. That data was sharply higher than expectations and not bond friendly.
Traders are now waiting for stocks to begin trade at 9:30 am ET and for the release of new home sales data set for 10:00 am ET. Also, this afternoon the Treasury will auction $35B in 5-year notes with results by 1:15 pm ET.
Why are rates under pressure? It comes from a variety of things including; what will happen during the election next Tuesday, what will the Fed do next Thursday, is inflation going to creep back or skyrocket and what is going with the economy and housing markets. Bond traders hate uncertainty and will take their money off the table when they get nervous.
Contact your Portland, Maine Mortgage Broker today for more info.