Good morning all and happy hump day! We had news today, as Mortgage Applications for the week ending March 19 was released at 6:00 central. We continued to see weak numbers at -2.5%. This followed the prior weeks’ -2.2%. Many of the housing headlines this morning dealt with a re-hash of yesterday’s New Home Sales. The 18.2% decrease was the sharpest decline there since July of 2013!
Bonds today are on a downtick in price, with the 10yr T-Notes -6/32 to yield 1.64% and FNMA 30yr 2.5% at $102-28 yielding 1.99% and +79 to the 6.5yr treasury curve. Note that when rates were lower this same MBS coupon had a 3.8yr average life. You couldn’t ask for a better example of duration extension. We buy and sell MBS, call us! Have a great day!
Cherry Picks
10 Year Fixed
15 Year Fixed
20 Year Fixed
30 Year Fixed
Agency CMBS
Agency CMO – 3 Year
Agency CMO – 5 Year
Jim Tait is a registered representative with and offers securities through Hanover Securities, Inc. (Hanover), Member FINRA & SIPC. Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Securities that may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results.
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Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Loans and/or Securities which may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results. This information from Banes Capital Group (BCG) and/or Hanover Securities is for your private use, and was obtained from sources we believe to be reliable. However, we do not represent that this information is accurate or complete, and it should not be relied on as such. This information is for institutional investors only, and as such certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in loans or securities identical or related to those identified herein.
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