November 21st, 2014 7:30 AM by Dale DiGennaro
As of late yesterday, Mortgage Backed Securities (MBS) were up +7/32 (FNMA 30-yr 3.5 at 103.17), around 1/32 above morning levels. Despite stronger than expected economic data, MBS prices held early gains. Most notably, the Philly Fed regional manufacturing index surged to the shocking level of 40.8, far above the consensus of 18.0, and the highest level since 1993. Most economists expect future readings to return to levels around 15 to 20, though. The Dow was up 30 points yesterday as well. No economic data will be released today though so no real change is expected. October Existing Home Sales increased 2% from September to an annual rate of 5.26M, above the prediction of 5.15M, and the highest level since September 2013. Existing Sales were 3% higher than one year ago. Total inventory of existing homes available for sale fell 3% to a 5.1-month supply, but they were still 5% higher than one year ago. Freddie Mac reported that average mortgage rates fell in the week through November 20, with 30-yrs hitting 3.99%, from 4.01% the prior week.
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