Mortgage Backed Security News
It is quiet on the western front as we wait on Fed Chairman Ben Bernanke’s testimony in front of the Joint Economic Committee that is set to begin at 9:00 am CST. QE3 will be the main focus, as it is still trying to be determined how much longer it will last. Whatever Big Ben says goes and rest assured the markets will be listening. We are sticking to our position that QE3 will run beyond 2013 and likely into 2014.
Existing Home Sales will be released this morning and follows last week’s dive in Housing Starts. In addition, the FOMC minutes from the May 1 Fed meeting will be released at 2 pm. The backward looking Minutes may not be as much of a market mover since we will be hearing Bernanke speaking live.
There was a bit of good news on the foreclosure front. Lender Processing Services reported that Americans in the foreclosure process have declined by almost 25% since April 2012.
Mortgage bonds are still trying to build on yesterday’s bounce off support. It is recommend that you float your rate ahead of today’s events, while seeing of prices can follow through on the positive momentum.