Market Snapshot July 12, 2017


Good Wednesday AM,


Bonds are strong this morning, this is helped by Ms. Yellen’s comments which were much less hawkish than expected. She said we will need a few more hikes over the next few YEARS, and hinted that there is balance in the market right now. Additionally the Fed would start to taper the balance sheet this year, which would normally put pressure on rates, but I am still not convinced. If the volume of available loans to purchase is reduced (which it is) then the Fed would just (based on avail supply) be buying less. We will see how that theory works out but for now, I am floating it out there. Today is bond rollover day which doesn’t affect pricing but it does impact trading prices. We would have lost 19bps on the rollover but we are plus 15bps on the day so in reality, bonds are up 34bps from yesterday’s close. The 10-yr is also improving at 2.32%. I’ll start the chicken dance when the 10-yr is back below 2.30%. Pricing today may be pretty good and worth taking.


Interesting piece in Bloomberg.. “The future for appraisers specializing in residential mortgage work is coming to an end,” he wrote in a recent newsletter for peers. “No bang. Not even a whimper.” That’s because the breakthroughs predicted at that seminar a quarter-century ago are finally happening. Advances in big data and computing are helping automation creep into knowledge-based professions, threatening to knock off jobs in much the same way robots have been doing at factories for decades.


And just as a talking point, the average national FICO score reached an all-time high, hitting 700 for the first time ever.


Make today great!