PM Mortgage and Real Estate News

Interest rate markets started the day with lower prices; the 10 at 9:00 2.77% +2 bp and making another run at key technical levels, 30 yr MBS price at 9:00 -11 bp from yesterday’s 15 bp price decline in the futures markets prior to the 9:30 open stock indexes were a little better. So far it hasn’t been a good week for interest rates and MBS prices, the last two weeks have seen the 10 yr note move from 2.68% on Friday 2/7 to 2.78% early this morning. 

When the minutes of the Jan FOMC meeting were released Wednesday there was a comment that some of the members were discussing an earlier increase in interest rates than was previously expected as unemployment continues to decline. The comment led to a lot of initial concern in the markets; stocks sold off as did the 10 and MBSs.
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The only scheduled data today, Jan existing home sales expected down 4.3% from Dec, sales fell 5.1% from Dec to 4.62 mil units (ann.), estimates were for 4.70 mil. The median sales price $188,900, +8.1% yr/yr; the inventory level increased to 1.9 mil, based on the sales pace there is a 4.9 month supply; first time home buyers accounted for just 26% of sales, the lowest percentage since NAR has been keeping the data. NAR didn’t blame all of the decline on weather; they noted very tight credit and affordability. Tight credit is a result of Washington continuing to try controlling the economy; the affordability issue is due to low paying jobs with no prospects of increases.

The 10yr and MBSs continue in their narrow ranges; the 10 is testing its key averages that still hold and al momentum oscillators are now at neutral levels since here has been no real change in rate markets going on to three weeks now. 
If you have not locked your rate yet I would suggest waiting until next week.