Good Monday AM,

Finally a small break in the rate clouds. The 10-year treasury is showing signs of strength this morning and mortgage bonds are improving as well. On the news front, NAHB beat expectations while Empire State Manufacturing missed by a long shot. It has been a while since we have seen a manufacturing number miss expectations. We have a light news week with most of the releases being housing related and I think most of us know those numbers will be good. I expect a fairly quiet bond week and that we will stay range bound. If we see a break below or a break above the current range, expect a much bigger move.

I don’t want to beat a dead horse about how big of a deal it is that FHFA imposed this 50bps hit for all refinance loans. But it is a big deal. I thought I would share a vlog on the subject to make the point.

https://www.facebook.com/theresource.tv/videos/vb.111490705548553/659762364895195/?type=2&theater

Please remain safe and stay healthy, make today great!