Posted by: cfigueira | May 21, 2010

Mortgage bonds prices

Mortgage bonds prices remained stronger today pushing rates lower following bond friendly data and struggling stocks. The DOW closed down 376 points.

Weekly jobless claims rose 471k, higher than the expected 440k increase. This is very bond friendly.

The Greek economic crisis continues to ripple across the world markets. Many analysts point to Friday as a deadline for Greek debt payments and there is concern there will be chaos in the Euro if additional measures are not implemented to help Greece.

Yesterday the Mortgage Bankers Association said the inventory of homes in foreclosure rose to 4.63 percent from 4.58 percent in the fourth quarter, this initially caused stocks and mortgage bonds to bounce around a bit following the release.

Oil prices fell below $70/barrel today. Falling energy prices generally help alleviate the fear of inflation and help rates improve while rising energy prices usually reignite inflation concerns.

Leading economic indicators fell 0.1%, weaker than the expected 0.2% increase.

Philadelphia Fed’s business conditions index came in at 21.4 versus April’s mark of 20.2.

There is no additional data this week.

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