Equity markets doing better this morning after the strong selling last week that took the DJIA down 437 points; the bond and mortgage markets were supported last week on the fall. This morning the 10 yr started weaker; at 9:00 -8/32 at 3.63%, mortgages at 9:00 -5/32 (.15 bp) and the DJIA futures +46. Technically, both the 10 yr treasury and mortgages are finding resistance at key levels; the 30 yr FNMA 4.5 coupon at its 40 day moving average (100 26/32 (100.81 bp), the 10 yr note at 3.60% both levels that will keep rates in check early this week. At 9:30 the DJIA opened +65, the 10 yr note -7/32 and mortgage prices -.15 bp from Friday’s close.
This week there is a lot to think about; Treasury will sell $118B of notes, the FOMC meeting that will conclude on Wednesday at 2:00 with the usual short statement, and the confirmation of Ben Bernanke for his second term. Let’s just say that if by some chance Bernanke was not re-appointed, it would break the equity markets, hammer the dollar and eventually spark a run up in interest rates.
The only economic release hit at 10:00; Dec existing home sales expected to be down 9.8%, were 16.7% to 5.45 mil annualized, the largest monthly decline ever; inventories fell 6.6% and the median sales price at $178.300. Yr/yr sales increased 4.9% in 2009 frm 2008; the yr/yr price decline at 12.4% was also the largest decline in prices ever recorded. Treasuries caught a little bounce, the stock market didn’t react negatively to the decline in sales.
Market Minute information for January 25th, 2010 provided by:
 Patsy Bailey Mortgage Banker |
 4801 Lang Ave NE Suite 100 Albuquerque, NM 87109 4001 Office Court Ste 603 Sante Fe, NM 87507 Cell: 505.715.3231 Office: 505.473.4045 ext.109 E-mail: patsybailey13@gmail.com |
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For more information on home financing, visit my Albuquerque Mortgage Page.
