Rates steady

Mortgage Bonds are trading slightly higher today ahead of some big supply set to hit this week from the Treasury Department in the form of T Note offerings.

In economic data, Durable orders were unchanged in October, while the case Shiller Home Price 20-city index rose to its 6th straight monthly gain. In addition, Lender Processing Services reported that home prices rose in September from the prior month and are higher from a year ago while Consumer Comfidence jumped to its best level in more than four years.

I will continue a Floating recommendation for it is tough to see home loan rates move significantly higher from current levels. The Federal Reserve continues to keep home loan rates near record lows in an effort to shore up the housing market and that should continue well into 2013 or until such time that the sector can stand on its own two feet.

Leonard Winslow
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