Mortgage Rates

Mortgage Rates Anthony Hood Equity Investment Capital Office: 949-891-0067 Email: tony@equityinvestmentcapital.com website: www.equityinvestmentcapital.com Miscellaneous: The bond and mortgage markets opened generally unchanged this morning with no driving news and no US data points today. MBSs had another good day yesterday but treasuries were flat; the spread between 30 yr mortgage rates and the 10 yr note is narrowing since the Fed announced its plan to purchase $40B a month of mortgage-backed securities. US treasury market this morning is slightly weaker, the 10 yr note up 1 bp to 1.78%. German 10 yr bund also weaker in price on reports that said euro-region policy makers will unveil a financial bailout program for Spain as early as next week. The German 10-year yield climbed one basis point, or 0.01 percentage point, to 1.58%. Spanish Economy Minister is in talks with European Commission authorities to facilitate a new rescue program that will be presented on Sept. 27, the Financial Times reported, citing unidentified officials involved in the discussions. If you blinked you missed Congress in session; the politicos are about to head home again after two heavy lifting weeks of constant arguing and not accomplishing much. That really should not be a surprise however, this Congress is one of the worst in history and is an embarrassment to citizens. Just 13% of Americans approve of the job Congress is doing, according to a Gallup Poll released last Friday. That’s the lowest congressional approval rating Gallup has recorded so late in an election year. The only notable piece of legislation Congress plans to send to the President from its two-week September session is a stopgap funding measure to keep the government operating from the Oct. 1 start of the fiscal year through March 27, 2013. Lawmakers plan to finish their work within the next few days. At 9:30 the DJIA opened +41, NASDAQ +18, S&P +6; 10 yr note +2 bp to 1.79%. Mortgage prices generally unchanged from yesterday’s close. The day should be quiet with no news of consequence, not much to report. On CNBC this morning most talk is about Apple’s new phone, not much to fill the airwaves this morning. . Technically the 10 yr note is still slightly bearish, while the MBS markets hold a bullish bias on the Fed’s decision to buy MBSs.