Tuesday, December 10, 2013 - Article by: Joe Shamie - First Choice Loan Services -
Tuesday - December 10, 2013, 2:00 pm ET
Current Trend Direction: Sideways to higher
Float/Lock Bias:Carefully FloatingCurrent Price of FNMA 4.0% Bond:$103.88, +34bp
After hitting yet another record high close (1,808) yesterday, S&P 500is trading lower and is giving a lift to Bond prices today. There are no economic reports to impact Bond trading, so the debt markets will take their cue from the activity in Stocks.
The Treasury will sold $30B 3-Year Notes earlier today and the results were strong garnering an A rating.
In housing news, the FHFA announced an increase in g-fees of 10bp for the price of guaranteeing all mortgages purchased by Fannie Mae and Freddie Mac beginning in March or April of 2014.
And this from Fannie Mae's November Housing Survey - nearly 2/3s of Americans remain cautious about their personal finances and the state of the economy. Here is the link for the report. http://www.fanniemae.com/portal/about-us/media/corporate-news/2013/6051.html
Technically, Bond prices continue to improve off last Friday's lows. We continue to float, but be aware that the 4% Mortgage Bond is beginning to test resistance at the 100-day Moving Average and it could be a tough level to crack. As always, we will be watching the action very closely throughout the session.
Joe Shamie NMLS # 241432
First Choice Loan Services NMLS # 210764
First Choice Bank NMLS# 177877
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