Can You See The Weekend Yet?

  • December 13, 2013

canyouseetoon

This week dragged on and on, didn’t it? No economic news has made for a long week. I am sure everyone is filling the time with holiday parties and late night gift wrapping. I, for one, am exhausted from all the frivolity.  Actually, I think the Bond Market is a little tired too. I better grab a cup of coffee because it’s time for the weekly recap. Let’s break it down …

  • MBS rallied early in the week following a strong employment report. This is paradoxical in many ways, but the increased buying from late in the week carried us through positive territory. What does this mean to you? Mortgage rates went down. We might have started the week a little too strong.
  • At the opening bell Tuesday, the market improved again despite the FHFA announcing an increase in guarantee fees effective April 1st. This means the cost of an insured mortgage will increase come April 1st. If you want to avoid the fee, close your loan prior to that date. Hurry!
  • Wednesday we hit a lull in the economic calendar. However, there was a short lived rally when Mel Watt was confirmed as the new head of the FHFA.  Investors are concerned he will expand the HARP program. About ten minutes later we hit that 3 o’clock feeling.
  • Thursday was stagnant. Today was even more so with no economic reports to move the needle in either direction. Is the clocking moving? Seriously. Tap tap.

All eyes are on next week and the FOMC meeting. Wednesday the minutes from the December meeting will be released and Ben Bernanke will take the stage. If the Fed announces tapering we could see a big swing in the market. Get your rest because next week is going to be busy.

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