Monday - March 31, 2014, 9:53am ET

Current Trend Direction: Sideways

Float/Lock Bias: Carefully FloatingCurrent Price of FNMA 4.0% Bond: $103.78, -19bp

He never wears a watch because time is always on his side! The most interesting man in the world. But we may not have much time for better rates in the short term this week given the closely watched Jobs Report is fast approaching this Friday.

At 10 am ET, Fed Chair Janet Yellen is speaking in Chicago. Stocks are happy heading into the speech in hopes of equity-positive talk. The last time Yellen spoke, the markets were hearing a Fed Funds Rate hike by mid-2015, but some Fed members have since poo-pooed that notion. If Stocks continue to build on todays opening momentum higher, Bonds could suffer further stay tuned.

The only economic report due for release today was the Chicago PMI manufacturing report, falling to 55.9 from 59.8 in February and below the 60.1 expected. The weaker than expected data lately can only be blamed on the weather for a bit longer.

In housing news, Clear Capital reported today that through the first quarter of this year national home prices remained mostly flat. Not a big surprise as the price gains have slowed since the relatively high uptick in interest rates since last Summer.

Technically, the Bond has gapped or opened lower than Fridays low. This is not a good sign and the pick-up in selling is typical when prices fall through support like the 200-day Moving Average. In retrospect, Fridays Alert To Lock was well timed and avoided negative repricing. But on brand new transactions, we can try and start the day floating, but have these prospects understand that you may be locking into Fridays Jobs Report depending on where prices are on Thursday.

Joe Shamie NMLS # 241432

First Choice Loan Services NMLS # 210764

First Choice Bank NMLS# 177877

866-970-3400 x-5135

jshamie@fcbmtg.com