Wednesday, April 2, 2014 - Article by: Joe Shamie - First Choice Loan Services -
Wednesday - April 2, 2014, 11:20am ET
Current Trend Direction: Sideways to lower
Float/Lock Bias: FloatingCurrent Price of FNMA 4.0% Bond: $103.56, -31bp
Mortgage Bonds continue to drift lower today after hitting a short term peak last Thursday. Looking ahead, we may be locking again into the Jobs Report.
The closely watched S&P 500 opened near unchanged levels after closing at a fresh record high yesterday of 1,885.
The markets have digested mixed numbers from the ADP report for March with private employers adding 191K jobs, below the 215K expected. February was revised up to 178K from 139K. The labor markets seem to have improved after the recent weakness seen in December, January and early February due to the extreme winter weather around the country. The ADP report comes ahead of Friday's government jobs data where it is expected that employers added 195K jobs, both in the private and public sector.
The Mortgage Bankers Association reported today that its Market Composite Index, a measure of total loan application volume, fell by 1.2% in the latest week. The refinance index fell 3%, while the purchase index edged up 1%.
Technically, the 4% coupon has drifted lower from resistance at the 200-day Moving Average...start the day floating. But get your clients prepped to lock in advance of the Jobs Report.
Joe Shamie NMLS # 241432
First Choice Loan Services NMLS # 210764
First Choice Bank NMLS# 177877
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