Tuesday - December 31, 2013, 9:55 am ET

Tuesday - December 31, 2013, 9:55 am ET

Current Trend Direction: Sideways to slightly higher

Advise Your Clients: Carefully FloatingCurrent Price of FNMA 4.0% Bond: $103.12 -3bp

The Bond markets will close today at 2pm ET and will be closed tomorrow for New Year's Day. Stocks will have a regular session today closing at 4pm and closed tomorrow. Our next Daily Market Update will be delivered on Thursday January 2, 2014.

Mortgage Bonds are slightly lower, giving up some of yesterdays gains. For the past week and a half, prices have traded in a sideways range above support at the $102.66 level. A look at the Bond Chart shows how prices managed to bounce off this floor a couple times in the past 7 trading days, so it is good to see Bonds try and stabilize. But at the same time, Bonds have shown no conviction to move meaningfully higher this is not good for rates.

As we head into 2014, clients should be prepared for higher rates. It is highly unlikely that we will see 30-year mortgages back in the 3s. At the same time, we see market volatility picking up in 2014 as the Feds decision to taper further will be completely data driven.

Have a wonderful evening be safe and we will see you next year!

Joe Shamie NMLS # 241432

First Choice Loan Services NMLS # 210764

First Choice Bank NMLS# 177877

866-970-3400 x-5135

jshamie@fcbmtg.com

Current Trend Direction: Sideways to slightly higher

Advise Your Clients: Carefully FloatingCurrent Price of FNMA 4.0% Bond: $103.12 -3bp

The Bond markets will close today at 2pm ET and will be closed tomorrow for New Year's Day. Stocks will have a regular session today closing at 4pm and closed tomorrow. Our next Daily Market Update will be delivered on Thursday January 2, 2014.

Mortgage Bonds are slightly lower, giving up some of yesterdays gains. For the past week and a half, prices have traded in a sideways range above support at the $102.66 level. A look at the Bond Chart shows how prices managed to bounce off this floor a couple times in the past 7 trading days, so it is good to see Bonds try and stabilize. But at the same time, Bonds have shown no conviction to move meaningfully higher this is not good for rates.

As we head into 2014, clients should be prepared for higher rates. It is highly unlikely that we will see 30-year mortgages back in the 3s. At the same time, we see market volatility picking up in 2014 as the Feds decision to taper further will be completely data driven.

Have a wonderful evening be safe and we will see you next year!