Friday, December 13, 2013 - Article by: Joe Shamie - First Choice Loan Services -
Friday - December 13, 2013, 10:50am ET
Current Trend Direction: Sideways
Float/Lock Bias:Floating into Fed meetingCurrent Price of FNMA 4.0% Bond: $103.31, +9bp
Mortgage Bonds are trading higher this morning as buyers emerge on lower prices and the Fed continues to purchase Bonds in the open market. Selling supply is somewhat muted today to end the week.
This morning's tame inflation data at the wholesale level showed that the Producer Price Index for November fell by -0.1% with the Core at 0.1%. The news had little impact on trading and both numbers were in-line with expectations.
The federal budget deal has passed through the House and now heads to the Senate where it is expected to pass and then on to President Obama for his signature.
Over in housing, the Mortgage Bankers Association reported that the average loan size for new homes hit $295,523 last month, but mortgage applications for new home purchases fell by 18% from October to November. The number of new homes sold in November decreased to 32,000, from 40,000 in October.
We are recommending to float headed into the weekend and we would ideally like to continue to float into the 2-day Fed meeting. The Fed's monetary policy statement will be released at 2:00pm ET on Wednesday. Have a great weekend!
Joe Shamie NMLS # 241432
First Choice Loan Services NMLS # 210764
First Choice Bank NMLS# 177877
Didn't find the answer you wanted? Ask one of your own.