Mortgage Rates

Mortgage Rates Anthony Hood Equity Investment Capital Office: 949-891-0067 Email: tony@equityinvestmentcapital.com website: www.equityinvestmentcapital.com Mortgage backed securities (MBS) gained a paltry +8 basis points from Tuesday's close which caused 30 year fixed rates to move sideways. Both the headline and core PPI numbers were lighter than expected. This is normally (and the term "normally" doesn't always apply in today's market place) positive for bonds as it shows very low inflation. But it was very close to market expectations (0.1% vs est of 0.2%) and did not materially impacting pricing as MBS had some headwinds from Europe. The Eurozone posted 0.3 percent growth in the second quarter of 2013 from the first, beating expectations for 0.2 percent growth and signaling the end of the longest recession in continental Europe in over 40 years. This better than expected news has helped to keep pressure on MBS pricing yesterday. MBS traded in a fairly narrow range that was only 23BPS wide from our highs to our lows of the day and were confined to trade within the trading channel. The stock market (as measured by the DOW) tanked -113.35 but MBS barely moved...just another data point that demonstrates that stocks and bonds are operating independently of each other.