The volatility continues as Mortgage Bonds opened lower this morning, but then erased their losses. Since May 21, the 4.5% coupon has shed 556 basis points, pushing home loan rates to the highest level since the Federal Reserve announced its Mortgage Backed Security purchase plan back in November.
Fears of future inflation and added supply have been the culprits behind the recent sell-off.
In other news, Retail Sales were inline with estimates and marked the biggest rebound for Retail Sales in 4 months. Also, while Initial Jobless Claims were below estimates, continuing claims rose to 6.82 million, which is another new record.
A day that we are not getting an "alert to lock."
Bonds look to be trying to improve this morning. I will let you know if this changes.
No comments:
Post a Comment