Tuesday, July 1, 2014 - Article by: Joe Shamie - First Choice Loan Services -
Tuesday - July 1, 2014, 12:16pm ET
Current Trend Direction: Sideways
Float/Lock: Cautiously Floating
Current Price of FNMA 3.5% Bond: $102.56, -22bp
Positive economic data from UK and China is helping Stocks and hurting Mortgage Bonds so far today. Prices appear to be stalling at the current resistance levels and ahead of this week's big risk event, the June Jobs Report on Thursday morning.
CoreLogic reported that home prices, including distressed sales, rose 8.8% in the year ended in May, which is down from the near 10% that was recorded in April. We feel that home price gains are coming back down to more normal levels after the big gains seen in 2013. On a month-over-month basis, prices rose by 1.4%. CoreLogic forecasts a 6% rise from May 2014 to May 2015, which "should help cool things down a bit and keep the housing recovery going", said a spokesman for CoreLogic.
Technically, and as mentioned, Mortgage Bond prices are stalling at current resistance levels as traders position themselves ahead of Thursday's Jobs Report. We will continue to carefully float, but remember that we will most likely be locking late Wednesday ahead of the Jobs Report.
Joe Shamie NMLS # 241432
First Choice Loan Services NMLS # 210764
First Choice Bank NMLS# 177877
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