Judgement is All Around Us…

  • December 11, 2013

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Yesterday was a quiet day in the mortgage bond market, but a big day for me. I bought my first Christmas tree. I caved. I was not going to participate this year; however I had judgments raining down on me from friends and family members. I felt like Janet Yellen defending her confirmation before the Senate. Actually, judgment seems to be the theme of the day…

  • No significant economic data was released today.  That leaves a lot of time for investors and politicians to kibitz and speculate about tapering and federal budgets.  Investors are betting the budget deal floating around Washington indicates the Federal Reserve might start to scale back its economic support.
  • Mortgage rates lost some ground today after the 10-Year Treasury auction this afternoon. These large auctions lured investors away from the mortgage market and caused bond prices to fall.  Investors looked at their lives, looked at their options…and they chose Treasuries today.
  • The Senate finally came to a verdict on Mel Watt, a Democrat from North Carolina. He was confirmed as the new FHFA Director.  This could mean changes in future policy like increasing mortgage fees but, he has been quiet about his plans.

Tomorrow Jobless Claims will be released and economists are predicting a strong number even with seasonal adjustments. If that happens that could push sentiment among the FOMC members to taper bond purchases in early 2014. Everyone has an opinion about this timeline but…judgment is all around us.

-By Lindsey Fediuk, Quicken Loans Capital Markets Analyst

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