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Friday, November 14, 2014

Mortgage Bond Market Analysis - TGIF edition

Good morning and happy Friday.  The benchmark bond has shrugged off the early morning propensity to sell which was driven by better-than-expected economic data.  Investors are pushing bond prices higher, albeit slightly.  It is currently up 6 basis points and is hovering above both the 1st level of resistance as well as the 10 day moving average.  Closing above these levels might indicate a possibility of some follow through on Monday; of course we had a nice Friday last week and did an about face on Monday so sometimes momentum works and sometimes it doesn't.  Here's the chart:

It's a good time to lock if you have a loan closing soon but if you have some time, I wouldn't be afraid to float heading into Monday.  If you do float, make sure you stay on top of the market so that you can lock quickly if it turns against you.

Please feel free to share your thoughts in the comments section and share this with your friends as well as like and subscribe.  Make it a great weekend.

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