It's Hump Day and it's also the first day of the week for any economic data. Existing Home Sales were released today and they came in slightly above expectations at 5.49 mil vs. 5.40. This isn't having much impact on mortgage bonds / interest rates, possibly because of the decline in tech stocks with somewhat disappointing earnings from Apple.
The benchmark bond has traded in a very narrow range throughout the week with nothing big happening to justify any large moves. The FNMA bond closed down 9 basis points on Monday and was up 23 basis points yesterday. It is currently up 12 basis points, 3 off the high for the day and 19 above the low. The 1st level of resistance is now at 103.27 with the current bond price at 103.25 and trying to break through.
Tomorrow we will get Jobless Claims, expectations of 278K vs. previous of 281K, and Leading Economic Indicators which are estimated to come in at .2 vs. previous of .7. I think it's safe to float into tomorrow with so little data and the expectations for it to be weak. As always, make sure you have your eye on the market and can be ready to act should there be any big sudden moves - especially if the bonds start to sell off, pushing rates higher. Thanks for reading - please share this with your friends and clients and subscribe. Feel free to contact me if I can help with anything mortgage-related - 702-812-1214. Make it a great day.