“Mortgage Bonds are lower this morning, following through on Friday’s weakness and responding to a move higher in Stocks. While Stocks are higher due to good earnings reports, it is important to understand that positive earnings numbers gained by cutting jobs are not really positive for the economy, nor are these gains sustainable.
There are no economic reports set for release today, but later this week we’ll have reports on housing, consumer demand, economic growth, inflation and the labor market. In addition, there will be more Treasury auctions this week.
The Fed’s Treasury buyback program comes to an end on Thursday. Without the Fed buying support helping to provide demand to sop up some of the massive supply…rates will continue to edge higher.
FHA…5.25%
Conventional….5.125%
Brian Scott
