Tuesday, April 07, 2020
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Phil Joseph
Branch Manager
Sr. Mortgage Loan Originator
Over 25 Years' Experience
American Pacific Mortgage
Rancho Bernardo Branch
11770 Bernardo Plaza Court #451
San Diego California 92128

Direct: 619.507.3558
Fax: 858.430.2557
Email: Phil@PhilJoseph.com
Website: www.PhilJoseph.com
NMLS# 249549
Company NMLS# 1850
 
Licensed in California by the Department  of Business
Oversight under the Residential Mortgage Lending Act 417-0015 
 
American Pacific Mortgage may not be the lender for all products offered on this website. Some loans may be made by a lender with whom American Pacific has a business relationship. Equal Housing Opportunity.
 
Phil Joseph
Branch Manager
Sr. Mortgage Loan Originator
Over 25 Years' Experience
American Pacific Mortgage
Rancho Bernardo Branch
11770 Bernardo Plaza Court #451
San Diego California 92128

Direct: 619.507.3558
Fax: 858.430.2557
Email: Phil@PhilJoseph.com
Website: www.PhilJoseph.com
NMLS# 249549
Company NMLS# 1850
 
Licensed in California by the Department  of Business
Oversight under the Residential Mortgage Lending Act 417-0015 
 
American Pacific Mortgage may not be the lender for all products offered on this website. Some loans may be made by a lender with whom American Pacific has a business relationship. Equal Housing Opportunity.

Market Commentary

Updated on April 7, 2020 10:17:06 AM EDT

There again is nothing scheduled for release today that is expected to affect rates. We are seeing Treasury bonds move with stocks, but fortunately, the reaction in mortgage bonds is not nearly as strong. Look for them to remain independent of Treasury securities, at least for the near future. That will limit the negative impact a stock rally may have on mortgage rates.

Activities start tomorrow afternoon with the first of two Treasury auctions that have traditionally affected mortgage rates. There is a 10-year Treasury Note sale tomorrow and a 30-year Bond sale Thursday. We could see some weakness in bonds ahead of the sales as participating firms sell current holdings to prepare for them. This weakness is usually only temporary if the sales are met with a decent demand from investors. The results of the auctions will be posted at 1:00 PM ET each day. If the demand from investors was strong, the bond market could rally during afternoon trading. If the sales were met with a poor demand, afternoon weakness may cause enough of a move to create upward revisions in mortgage pricing tomorrow and/or Thursday.

Tomorrow afternoon also has the minutes from the March 15th FOMC meeting, which was an unscheduled emergency meeting. Market participants will be looking at them closely as they give us insight to the Feds current thought process and individual Fed member opinions about how bad the economy will get during this pandemic. Any surprises in the 2:00 PM ET release could cause afternoon volatility in the markets and possible changes in mortgage pricing tomorrow afternoon.

 ©Mortgage Commentary 2020

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