Market Comment
Yesterday, we saw a huge rally in Mortgage Bonds after Greece's debt was downgraded to "junk" status, which prompted investors to seek the safe haven of the US Bond market. However, we're seeing a slight reversal this morning.
In other news, the Fed's Policy Statement and Interest Rate decision will be released this afternoon. Two important topics that may move the markets are what the Fed says about selling its Mortgage Backed Securities holdings and whether the Fed continues to say that rates will remain low for an “extended period” of time.
Currently, Bond prices are trading near an important ceiling at the 50-Day Moving Average. I recommend floating for now, but be prepared to lock if the situation changes.
Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
In other news, the Fed's Policy Statement and Interest Rate decision will be released this afternoon. Two important topics that may move the markets are what the Fed says about selling its Mortgage Backed Securities holdings and whether the Fed continues to say that rates will remain low for an “extended period” of time.
Currently, Bond prices are trading near an important ceiling at the 50-Day Moving Average. I recommend floating for now, but be prepared to lock if the situation changes.
Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112
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