CHM Blog

At 6:30 pm ET yesterday a cease fire deal was reached with the Iranians. The cease fire adds another two weeks to the negotiations.

The reactions this morning are extensive, the 10 year note at 8:30 am 4.24% -6 bps, MBS price +36 bp from yesterday, futures trading in stock indexes, the DJIA +1,190, NASDAQ +804, S&P +158. Crude oil price -$18.00, gold +$116.00, the US dollar weakening.

The only data today, weekly MBA mortgage applications for last week. Mortgage applications eased by 0.8% from the previous week on the period ending April 3rd, extending the cumulative 28.5% plunge from the three previous weeks, even with a slight decline last week. Applications for a contract to refinance a mortgage, which are more sensitive, fell by 3.0%. In turn, applications for a mortgage to buy a new home inched higher by 1% but fell 7% from the previous year, the first annual decline in over a year.

At 1 pm the Treasury will auction $39B of 10 year notes, yesterday’s 3 year auction was met with strong demand, today’s 10 will likely see strong bidding also.

At 2 pm the minutes from the March FOMC meeting, with the Iran conflict on center stage the minutes won’t mean much.

PRICES @ 10:00 AM

10 year note: 4.25% -6 bp

5 year note: 3.89% -5 bp

2 year note: 3.76% -4 bp

30 year bond: 4.86% -1 bp

30 year FNMA 5.5: @9:30 am 101.34 +37 bp (+29 bp from 9:30 am yesterday)

30 year FNMA 6.0: @9:30 am 102.38 +17 bp (+18 bp from 9:30 am yesterday)

30 year GNMA 5.5: @9:30 am 101.03 +18 bp (+25 bp from 9:30 am yesterday)

Dollar/Yen: 158.28 -1.34 yen

Dollar/Euro: $1.1690 +$0.0092

Dollar Index: 98.72 -1.13

Gold: $4,802.50 +$118.80

Bitcoin: 71,821 +2807

Crude Oil: $94.22 -$18.73

DJIA: 47,874 +1289

NASDAQ: 22,655 +634

S&P 500: 6767 +152

Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.

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