5/09/16 Rates close to 2 year lows

May 9th, 2016

When the price of Mortgage Backed Securities (MBS) on the above chart above goes up mortgage rates come down.  When the price goes down mortgage rates go up. 

The chart above was produced at the close of today's trading.  We are currently close to 2 year highs.on prices and 2 year lows on mortgage rates.  Buyers  of MBS have turned into sellers when we have hit these prices in recent history.  This makes it difficult to see further improvement in rates.  

Below is the news when it happened and market reaction.  All of the times below are Eastern Standard Time

Mon, May 09 5:00 PM
MBS played spectator today as Treasuries pushed higher and ahead of tomorrow evenings Monthly Bond Rollover. MBS widened against Treasuries as the corporate calendar Bond supply took much of the air out of the fixed income room to start the week in what was already expected to be heavy supply in the next five days.

Not much action in the MBS market today to begin the week. There were no major headlines that hit the wires nor were there any economic reports. The 3% Fannie Mae 30-yr coupon closed at 102.84, up 9bp. Stocks also experienced a lackluster session. The Dow fell by 34.72 points to 17,705.91, the S&P 500 squeaked out a 1.55 point gain to 2,058.69, while the Nasdaq gained 14.05 points to end at 4,750.20. WTI oil was last seen at $43.42/barrel down $1.26. 10-yr yield 1.75%. There are no major economic reports due out tomorrow.
 
Mon, May 09 4:06 PM - Stocks close little changed as higher healthcare shares offsets lower commodities.
Mon, May 09 2:21 PM - The median existing single-family home price was $217,600 in the first quarter nationwide. That is up 6.3% from a year ago, reports the NAR.
Mon, May 09 2:20 PM - The National Association of REALTORS® reports that the median price of existing single-family homes rose in 87% or 154 of 178 of the major metro areas across the U.S. in the first quarter of 2016.
Mon, May 09 12:42 PM - Approaching midday, MBS flat to higher with little movement. S&P holding a small gain. WTI oil lower by $1.15 to $43.50/barrel. 10-yr T Note yield 1.75%.
Mon, May 09 10:41 AM - The Dow slips into negative territory. S&P near unchanged. WTI oil now lower by $0.67 to $44/barrel.
Mon, May 09 10:31 AM - The MBA reports that mortgage credit availability tightened in April.

10:05 AM New Rates have been posted http://www.johnmarbury.com/page5.html/

Mon, May 09 9:38 AM
Stocks open modestly higher.
Mon, May 09 8:55 AM
10-yr T Note yield 1.76%.
Mon, May 09 8:33 AM
The Monthly Bond Rollover will take place tomorrow night (Tuesday) after the close of trading.
Mon, May 09 8:27 AM
Fed's Evans says he expects U.S. GDP growth to rebound to 2.5% this year. Evans believes the Fed's current wait-and-see approach to rate hikes is appropriate.
Mon, May 09 8:21 AM
The Treasury will be selling a boatload of 3 and 10-year Notes along with 30-year Bonds this week Tuesday, Wednesday and Thursday.
Mon, May 09 8:18 AM - There are no economic reports being released today and the first report will be released on Thursday with Weekly Initial Jobless Claims.
Mon, May 09 8:17 AM - WTI oil $44.83/barrel +$0.18.
Mon, May 09 8:17 AM - U.S. dollar index 94, +0.11.
Mon, May 09 8:14 AM - S&P futures edge higher extending Friday's gains after the disappointing jobs report suggested that the Federal Reserve would raise rates just once in 2016.
Mon, May 09 8:12 AM - MBS open flat to modestly higher to begin the week after digesting the weaker than expected April jobs data on Friday.

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