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Joe Shamie

Market Update 11:10 AM ET

Tuesday, April 29, 2014 - Article by: Joe Shamie - First Choice Loan Services - Message

Tuesday - April 29, 11:10am ET

Current Trend Direction: Sideways

Float/Lock Bias: Floating with hopes of doing so into tomorrow's Fed statement

Current Price of FNMA 4.0% Bond: $104.34, -3bp

Mortgage Bonds are near unchanged and off their worst levels this morning after hitting the higher end of the short term trading range on Friday. Higher Stock prices are capping Bonds in the early going.

Bonds are being supported by slowing year-over-year price gains from the February Case Shiller 20-city Index coming in at 12.9%, which was just below the 13% expected and down from the 13.2% year-over-year gain recorded in January. In addition, the 12.9% is down from a recent high of 13.7%. A spokesman from Case Shiller said annual rates have cooled the "most we've seen in some time" due to higher mortgage interest rates and difficulties in qualifying for loans.

The 2-day FOMC meeting will kick off this morning with the statement being released at 2:00pm ET tomorrow. There will be no headlines from the meeting today.

Technically, the 4% coupon is just above support at the 50-day Moving Average with the 25, 100 and 200 below. We have seen Mortgage Bonds cut through support and resistance like butter in the past month. We would like to continue to float into the Fed statement today and tomorrow morning if the market allows us. Any break below the 50-day would prompt a switch to locking. As always, stay tuned.

Joe Shamie NMLS # 241432

First Choice Loan Services NMLS # 210764

First Choice Bank NMLS# 177877

866-970-3400 x-5135

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