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Joe Shamie

Market Update 10:35 AM ET

Thursday, April 17, 2014 - Article by: Joe Shamie - First Choice Loan Services - Message

Thursday - April 17, 10:35am ET

Current Trend Direction: Sideways to lower

Float/Lock Bias: Floating longer-term (weeks and months to closing) Locking shorter-term (days and weeks)

Current Price of FNMA 4.0% Bond:$104.19, -25bp

Mortgage Bonds continue to drift lower this morning following the same pattern that began on Monday, when we switched to a short term locking position. The Bond Market closes at 2pm ET today and is closed tomorrow so we may not see that much action as Traders exit for the weekend.

This morning's Weekly Initial Jobless Claims rose by 2K to 304K and below the 312K expected. Claims continue to hover near 7-year lows as employers slow the pace of firings. However, Fed Chair Janet Yellen said this week that a robust and healthy job market still appeared to be more than two years away. We agree with the Fed Chair, who was definitely trying to jawbone Stocks higher with that remark as it would suggest low rates for a longgggg time.

A mixed bag of earnings reports have left Stock prices near unchanged. Goldman Sachs, GE and DuPont's profits fell while Pepsi and Morgan Stanley beat estimates.

Technically, the 4% coupon is clinging to support at the 50-day Moving Average. We continue to recommend a short term locking stance, which is measured in a few days to a few weeks.

Joe Shamie NMLS # 241432

First Choice Loan Services NMLS # 210764

First Choice Bank NMLS# 177877

866-970-3400 x-5135

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