Maine Mortgage Market Update 11.15.2010

The steep selloff from Friday continues this morning. Mortgage bond prices remain considerably weaker pushing rates much higher. Stronger than expected retail sales data isn’t helping.

Retail sales rose 1.2%, expected up 0.7%, not bond friendly.

With all the volatility seen recently, you can expect your pricing desk to price defensively. Unscheduled price changes will come fast and exceed market movement as lock desks attempt to protect against the risk of falling prices.

Bonds are in the tank as investors move to the sidelines to see how QEII will play out. Bonds are concerned inflation will shoot higher.

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