Mortgage Rates

Mortgage Rates Anthony Hood Equity Investment Capital Office: 949-891-0067 Email: tony@equityinvestmentcapital.com website: www.equityinvestmentcapital.com The benchmark FNMA 3.5% August coupon lost -11BPS from Friday's close. We had a fairly quiet day...perhaps the "calm before the storm" this week. Pending Home Sales were better than expected (-0.4% vs -1.0%) and this is during the period where mortgage rates where near their highest of 2013. But MBS were not materially impacted by this report. From a technical perspective, MBS traded in a very tight range that was only 24BPS wide from our highs to our lows. Once again appetite for MBS decreased at the top of our trading channel which is our ceiling of resistance. However, the rest of the week is packed with highly influential economic data and other events that can significantly impact mortgage rates movement. There are seven economic reports that may affect mortgage pricing in addition to another FOMC meeting that certainly has the potential to cause chaos in the financial and mortgage markets. There is important economic data scheduled for release each of the remaining four days, so there is a strong likelihood of seeing noticeable mortgage rate movement several days, with more than including an intra-day revision. Overall, I am expecting to see an extremely active week for the financial markets and mortgage rates. I think that the most important day is either going to be Wednesday due to the GDP release and FOMC adjournment or Friday with July’s employment numbers being posted.