Commentary at the Close: The rally in Treasuries and MBS continued for the fourth straight session, despite today's mid-afternoon decline, which provided a reality check. MBS ended higher in today's session, despite the sell-off that occurred from the weak 10-yr auction. There were no economic reports released today.
3.5% Fannie Mae 30-yr coupon up 31 bp at a price of 102.84 up 3bp when rates were set today at 10:00 am Open 102.69 High 102.91 Low 102.62
Stocks ended mixed. The Dow fell by 35.95 points to 20,054.34, the S&P 500 was up by a meager 1.59 points, while the Nasdaq gained 8.23 points to end at 5,682.45. WTI oil closed at $52.34/barrel, near unchanged. 10-yr T Note 2.34%. Weekly Initial Jobless Claims will be released tomorrow. The Treasury will sell $15B 30-yr Bonds, results at 1:00 p.m. ET and comes after today's weak offering from the 10-yr paper
Mortgage applications rise 2.3% as rates hit three-week low
8:54 AM 3.5% Fannie Mae 30-yr coupon up 16 bp at a price of 102.69 up 31bp when rates were set yesterday at 10:00 am Open 102.69 High 102.72 Low 102.53
What Is Going On With Interest Rates? #wigowir
Below is the news when it happened and the market’s reaction. For a full view of the day start at the bottom and work your way up. If want to know what just happened start at the top. All Times are Eastern Standard Time. When the price of Mortgage Backed Securities (MBS) goes down rates go up, and when the price goes up rates come down. Remember in the bond market Bad News is Good News and Good News is Bad new
3:49 PM MBS able to rebound off the mid-afternoon lows.
1:33 PM Alert To Lock!
1:16 PM Mortgage Bond prices lose some gains after the weak auction results.
1:15 PM The $23B 10-yr Note auction garners a "D+" rating.
12:07 PM Bond traders look to the 1:00 p.m. ET release from the results of today's $23B 10-yr Note auction.
11:47 AM Rosy economic sentiment boosted housing attitudes in January, reports Fannie Mae in its Home Purchase Sentiment Index.
11:37 AM The S&P trades to unchanged levels. MBS holding gains. 10-yr yield edges lower to 2.34%.
9:49 AM MBS continue to push higher as Stock losses gather additional steam.
9:33 AM Stocks open modestly lower, Dow -48 points.
8:46 AM The New York Fed will purchase up to $1.825B in Fannie/Freddie 30-yr 3.5s and 4s beginning at 9:00 a.m ET.
8:44 AM For the Fannie Mae 30-yr 3.5% coupon, resistance at the 50-day Moving Average (102.20) now becomes support.
8:22 AM In addition, the MBA reported that the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424K) decreased to 4.27% from 4.32%.
8:21 AM The MBA also reported that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424K or less) decreased to 4.35% from 4.39%.
8:19 AM The MBAs refinance index +2%, purchase index +2%.
8:18 AM The MBA reports that its Market Composite Index, a measure of total mortgage loan application volume, rose 2.3% in the latest week.
8:17 AM The Treasury will sell $23B 10-yr Notes today, results at 1:00 p.m. ET.
8:16 AM U.S. dollar index 100.37, +0.13.
8:16 AM There are no scheduled economic reports set for release today.
8:12 AM WTI oil at $51.86/barrel, -$0.32.
8:12 AM 10-yr yield edges lower to 2.36% from yesterday's close of 2.38%.
8:08 AM MBS open higher as the Stock rally pauses. Late yesterday, the American Petroleum Institute reported that crude oil stockpiles rose by the second largest amount on record, which is pushing oil prices lower and leaning on equities. In addition, investors are taking the chance to secure some profits with the Dow, S&P and Nasdaq near record highs.
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