Push-Pull Battle

Mortgage bonds are drifting lower today, as stocks are pushing higher.  We seem to be continually in a push-pull battle, with stocks up one day and down the next.  It seems as if investors are constantly searching for reasons to buy or sell.  Pending Home Sales rose 5.9% in May, providing hope for an improving housing market.  Also helping spur enthusiasm was the Durable Goods orders showing a 1.1% increase in May.  Since the trend has been declining recently, this was welcome news.  Since mortgage backed securities are in a tightening trend, locking is very much advised on short term transactions.  Also, if we step off the trend of improving interest rates, we will likely see higher rates in the future.  This is a great time to take advantage of amazing interest rates…