Wednesday, February 5, 2014 - Article by: Joe Shamie - First Choice Loan Services -
Wednesday - February 5, 2014, 11:35am ET
Current Trend Direction: Stalled at resistance
Float/Lock Bias: Locking into Jobs Report. Current Price of FNMA 4.0% Bond:$104.81, -3bp
As evidenced by the Red Candle for today, prices are lower from where they opened. After a swift 250bp rise since Dec 19th, Bond prices have stalled heading into Fridays Jobs Report.
Speaking of Jobs - ADP reported this morning that private employers added 175K jobs in January, essentially in line with the 178K expected. The report comes before Fridays official Jobs Report where it is expected that employers, both private and public, added 175K jobs. More on the Jobs Report in tomorrow's Update.
The ISM Service Index came in at 54.0 in January, above the 53.8 expected and comes on the heels of Monday's sloppy ISM Manufacturing Index reading. The data helped to push Mortgage Bonds a leg lower.
In our Closing Technical Signal yesterday we switched to a Locking stance, and we are sticking with it today. With prices stalled at lofty levels and the Jobs Report on Friday, locking short-term loans, those closing in days to a few weeks, is prudent.
Joe Shamie NMLS # 241432
First Choice Loan Services NMLS # 210764
First Choice Bank NMLS# 177877
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