April Palacios
Branch Sales Manager
Fairway Independent Mortgage Corporation
License:
124941

Steady Selling in Bonds. 'Tis The Season?

Steady Selling in Bonds. 'Tis The Season?

Bonds began the day in weaker territory and continued to sell off through 2pm ET despite an absence of any obvious justifications.  That said, 'tis the season for bonds to move whichever way they want without any obvious justifications.  Volumes were as low as you'd expect for X-mas week, if not slightly lower. Treasuries are in a cautious stance, having been tasked with underwriting several huge shorter term auctions on X-mas week, and less than one week after a big dust-up with the Fed.  It's basically the bond market version of "sell in May and go away," except May is December. 

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Steady Selling in Bonds. 'Tis The Season

MBS & Treasury Markets
UMBS 5.5 98.45 -0.01 10YR 4.584% -0.005% 12/24/2024 12:57PM EST
MBS are now down 9 ticks on the day (.28) and nearly a quarter point from the AM highs.  Lenders who priced at or before 9:30am ET are slightly more likely to be considering negative reprices.  Some of the later-pricing lenders could even be considering reprices if they're feeling especially jumpy. 10yr yields are up 7.4bps now after a slow, steady sell-off, at 4.589.   READ MORE
Today's Mortgage Rates
30YR Fixed 7.10% +0.06% 15YR Fixed 6.45% +0.02% 12/23/2024
Holidays have inconsistent impacts on mortgage rates because holiday's have inconsistent impacts on the bond market (and rates are dictated by the bond market). Bond traders (the people buying and selling the bonds that ultimately determine mortgage rates) are people too.  They take vacations, or tack an extra day or two onto a scheduled holiday market closure to make for an extended holiday weekend. When more than a few traders are absent, the balance of remaining t...   READ MORE
Economic Calendar
Time Event Period Actual Forecast Prior
Tuesday, Dec 24
8:55AM Dec/21 Redbook yy (%) Dec/21 5.9% 4.8%
10:00AM Dec Rich Fed, services index Dec 23 9
10:00AM Dec Rich Fed comp. index Dec -10 -9 -14
10:00AM Dec Rich Fed manuf shipments Dec -11 -12
11:30AM 2-Yr Note Auction (bl) 28
11:30AM 2-Year FRN Auction (%) 0.140% 0.170%
11:30AM 5-Year Note Auction 4.478% 4.197%
11:30AM 5-Yr Note Auction (bl) 70
2:00PM Christmas Eve
4:30PM Dec/20 API weekly crude stocks (ml) Dec/20 -4.7M
7:00PM US Holiday
Wednesday, Dec 25
12:00AM Christmas Day
Read My Latest Newsletter
 "If anything on Fed day ends up having an impact on mortgage rates, it would have to be changes in the Fed's rate outlook and/or comments from Fed Chair Powell during the press conference that follows the rate announcement." That's how we closed out last week's newsletter , and there were certainly some changes! The gist was that mortgage rates often correlate very poorly with changes in... READ MORE
April Palacios
Branch Sales Manager
Fairway Independent Mortgage Corporation
License:
124941