MBS Day Ahead: State Of The What? Bonds Turn Attention to Supply and The Fed

Bonds Turn Attention to Supply and The Fed Posted To: MBS Commentary Despite a fair amount of focus on last night’s State of The Union speech in the news, it was a complete dud in terms of bond market movement.

A more important supply consideration arrives this morning in the form of the Treasury’s quarterly refunding announcement. Markets expect 3/10/30yr auctions to come in at $25/24/16 billion respectively. If those numbers are higher-especially if the longer-term auctions are higher-it could put pressure on bonds and MBS.

MBS RECAP: More Warning Shots From Bonds Could The Top Already Be In For Rates? – massive correction. Most analysts would agree that February and March would end up looking like a small warning shot relative to such a correction. To whatever extent that drama begins to unfold, rates couldn’t help but improve simply because so much money from the stock market would be seeking safe havens.

Bond markets have weathered the storm of. That has played out against the backdrop of steadily increasing Treasury supply and a slow-but-steady resolve to raise short-term rates on the part of the.

MBS Day Ahead: Treasury Weakness is a Chance for MBS. In the day just past, bonds extended the gains seen on Monday with 10yr yields hitting 1.98% before encountering resistance. The gains are.

As we mentioned, intermediate term bonds and long-term mortgages (more properly, Mortgage-Backed Securities, or MBS) compete for the same fixed-income investor dollar. Treasury issues are 100% guaranteed to be repaid, but mortgages are not; therefore mortgages carry more risk of default or early repayment, which could potentially disturb the return on the investment.

Most investors care about future interest rates, but none more than bondholders. If you are considering a bond or bond fund investment, you must ask yourself whether you think treasury yield and.

Mortgage Rates Today, Tuesday, Sept. 27: Rates Keep Dropping, New Homes in Demand Home Prices in 20 U.S. Cities Rise by Most Since Mid-2014 – Home prices in 20 U.S. cities rose in September by the most. case-shiller data released Tuesday. The residential real-estate market is benefiting from steady demand backed by a strong job market.

How much control does the Fed have on the housing market? The. – How much power does the Fed have on interest rates? The 100 basis point jump in mortgage rates this year tells you that the market is more concerned over the perception of health in the economy rather than the Fed. The amount of MBS purchases is extreme. The Fed is increasing its balance sheet to nearly $4 trillion.

Mortgage rates today, August 28, plus lock recommendations Home / Gold Price / Mortgage rates today, May 28, 2019, plus lock recommendations. gold price mortgage rates today, May 28, 2019, plus lock recommendations.. Chances are you’ll want to lock your mortgage anyway if you’re shopping for a house and have a better debt-to-income ratio than.

Fed statement set to tone pick up in inflation expectations. – The Federal Reserve is all but set to keep interest rates on hold at this week’s policy meeting, forcing traders to turn their attention to the central bank’s statement for any changes in the.

Bonds rallied in the run up to the auction and extended the gains afterward. The 1pm auction time also saw the heaviest volume of the day–yet another piece of evidence for the "positional" aspect to.

Mortgage Rates Hit Seven-Year High From Freddie Mac’s weekly survey: On the heels of prime rate moving up one-quarter to 5.25 percent this week, the 30-year fixed rate averaged 4.72 percent, up 7 basis points from last week.