Happy Valentine’s Day!

Happy Valentine’s Day!

Happy Valentine’s Day!   Mortgage bonds are down today, currently sitting on a triple layer of support.  However, support appears to be weakening, as bonds keep poking through and then coming back up.  This is often the initial signal of a pending break through.  Should this happen, mortgage rates will step a notch higher.

Consumer Sentiment was released this morning, reporting at 81.2, which is higher than the 80 figure anticipated.  However, Industrial Production and Capacity Utilization were both reported lower.  This conflicting message is causing investors a bit of confusion.  It seems when one report is strong, another is weak…  A lack of a clear direction makes placing positions in the market dangerous.

Mortgage bonds are currently flirting with support.  Since a break below will be very negative for mortgage rates, we feel the safe play is to suggest locking.  The stock market appearing poised to challenge market highs, combined with an overall unfriendly bond market momentum, gives us concern about near term deterioration of interest rates.

Markets will be closed on Monday in observance of President’s Day.  Have a great Valentine’s Day, and know how much we sincerely appreciate your business and referrals.  Now go enjoy the day with those you love!