Commentary & News:
2:00 pm ET: Cooler heads help market to recover as the DOW remains in negative territory.
1:15 pm ET: Bond prices fell in FAST trade this afternoon driving mortgage rates higher. Prices shot lower following the announcement from the Treasury that foreign accounts did not purchase as much of the 10-year offering as the previous auction. Despite the fact that the participation from overseas accounts was better than average, we initially got clobbered. Like they say in the mortgage business, you are only as good as your last deal. Lets hope cooler heads help prices to recover.
10:00 am ET, Lenders set pricing
Mortgage bond prices opened lower Wednesday morning adding to the losses seen Tuesday afternoon. Bond prices came under pressure early in the day when stock futures were positive, however, despite the DOW Jones index opening lower, rates did not recover. This is a sign the market is concerned over the auction this afternoon.
The only event on tap today is the Treasury auction of $21B ($21,000,000,000) in 10-year notes. Yesterday’s 3-year auction was good, however, sometimes good is not good enough. Indirect bidder participation, an indication of foreign demand for US debt was slightly below expectations, which caused a knee-jerk reaction driving rates higher. Be careful as the day progresses, rates often come under pressure as traders prepare for the additional supply. Auction results are expected by 1:15 pm ET.
Traders will spend the day watching stocks. If stocks move higher, rates will suffer. At pricing the DOW was near unchanged.
Good News Rates are still at historical lows CALL TODAY to lock in your rate no matter if you are Refinancing or Buying a new home it's time to do so!
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