Silver Linings…

  • November 21, 2013


The FOMC minutes were released yesterday and the bond market responded…just not in our favor. Shortly after 2 PM, the market sold off, causing mortgage bonds to lose a ½ point. A price event like that made me thankful for the small wins we had today…let’s break them down.

The morning started off rough for the bond market when claims for jobless benefits fell more than expected last week; falling 21,000 for a seasonally adjusted 323,000 claims. The good news is less people are unemployed.

The market began to gain momentum when Yellen cleared the Senate banking Panel on a 14-8 vote. The full Senate approval is expected post December.  The Senate (and the Market) love Yellen.

Then the Philly Fed Index came out and it missed big. Economists forecasted the manufacturing index would be strong at 15; however it came in at 6.5. That may not be good for the economy, but it was a big win for the MBS market.


Another data point for the day, the MBA reported a 6.5 percent decline in Refi Index. In order to encourage more people to refinance, analysts stated rates need to drop towards 3.6 percent. Today will help rates head in that direction, but we aren’t there yet.

By Lindsey Fediuk, Quicken Loans Capital Markets Analyst




Print Friendly, PDF & Email