Forgotten Your Password?

Need to Register?

Joe Shamie

Market Update 11:05 AM ET

Friday, January 17, 2014 - Article by: Joe Shamie - First Choice Loan Services - Message

Friday - January 17, 2014, 11:05 am ET

Current Trend Direction: Sideways near resistance

Float/Lock Bias: Locking with prices fighting resistance and at top of trading range. Current Price of FNMA 4.0% Bond: $104.00, +9bps

Mortgage Bonds are banging up against resistance and are near unchanged after a slew of typically Bond friendly news weak economic reports and soft corporate earnings/guidance.

Housing Starts in December declined by 9.8% from November to December to an annual rate of 999K - but essentially in line with the 986K expected. Building Permits, a sign of future construction, fell by 3% to 986K versus the 1000K anticipated. Cold weather in December has been blamed for the pullback in the housing numbers not to cause a ruckus, but isnt always relatively cold in December. This is an OK number for a housing market improving at a modest and sometime uneven pace.

Over in the Stock market - UPS, Intel, Amex, Morgan Stanley and General Electric reported a mixed bag of earnings, which has left Stocks slightly lower however, Bonds havent gained much because of the aforementioned resistance.

Technically, the benchmark 4% coupon is trading in a sideways pattern near resistance at the 50 and 100-day Moving Averages. We will continue to recommend a Locking bias, especially with it being a Friday as the Fed exits late morning for its Bond buying and headed into the extended weekend.

Note: All U.S. markets are closed on Monday in observance of Martin Luther King Day. Our offices will also be closed. Our next Daily Market Update will be released on Tuesday morning the 21st. Have a great weekend!

Joe Shamie NMLS # 241432

First Choice Loan Services NMLS # 210764

First Choice Bank NMLS# 177877

866-970-3400 x-5135

Didn't find the answer you wanted? Ask one of your own.

Get an answer
Subscribe to our news feed.