Today's Rate Volatility

http://globalhomefinance.com

Today's Rate Volatility: HIGH What happened last week? Mortgage backed securities (MBS) gained +36 basis points from last Friday's close which caused 30 year fixed rates to move slightly lower from the prior week. MBS traded in a very tight range all week. Mortgage backed securities were effectively "trapped" in a very narrow trading channel that was capped by our 10 day moving average which prevented any sustainable rallies towards better pricing.  We had a mixed bag of economic data which kept us trading in a tight range.  We had a very strong 10 year Treasury auction but the demand for our 30 year Treasury bond auction was not as strong.  We had a very low Initial Weekly Jobless Claims report, but the Labor Department said it was inaccurate.  Retail Sales did improve but came in lighter than market expectations.  Business Inventories improved but were offset by a much weaker than expected Consumer Sentiment Index. The bottom line is that there simply wasn't enough negative or positive economic data to break MBS out of their trading channel which resulted in some very tame rate movement. What is on the agenda for today? Don't miss out on the mortgage industry's premiere insight and commentary. Subscribe to RateAlert Executive today and get today's lock advice, complete market commentary and forecast for today, and watch the full Morning Coffee Update video with Bryan McNee - all available only to our Executive subscribers.