Back to top

Market Commentary

Market Commentary

December 30, 2014
10-YEAR NOTES   100-22 (+09)
FN 3.5% COUPON   104-08 (+04.5)
SUPPORT   2.42%
Scan with your
Today we have data on house prices with the Case-Shiller's House Price Index and later we will see the results from the latest Consumer Confidence Index. Case-Shiller's House Price Index (YoY) for October came in soft, as expected, at +4.5% vs. 4.90% in September. This is the lowest rate since October 2012. The MoM reading is positive, showing a strong +0.8% gain. The Consumer Confidence Index is expected to rise to 93.0 vs. 88.7 prior reflecting consumer recognition of improving economic conditions.
Yesterday, treasuries rallied for the second consecutive day as renewed political turmoil in Greece spurred demand for safe haven assets. The 10-Year note rallied +14 ticks pushing yields down -5.2 bps to 2.196%. The coupon stack compressed, tightening 1-2 tick in the belly coupons, and MBS underperformed treasury hedges by 1.5-2 ticks. The curve bull flattened with 2s10s down -2.0 bps to 148.6, pulling the 20-day average to 158.8 vs. 169 prior. Long-end yields fell, with the 30-Year bond down -4.8 bps to 2.764%. The 30-Year current coupon declined -3.0 bps on the day to 2.86% and the 15-Year followed suit, down -3.0 bps to 2.11%. The G2/FN declined 2-3 ticks in the production coupons led by a -3 tick decrease in the 3.0% coupon. The G2/FN 3.5% swap declined to 0-21.25 vs. 0-23 prior. Today treasuries have extended their rally for a third consecutive day with 10-Year note yields at 2.172% and the curve continues to bull flatten with 2s10s down -0.2 bps.
This Week's Events:
12/30 S&P/Case-Shiller House Price Index YoY 06:00 October - 4.64% 4.81% 4.82%
12/30 Consumer Confidence Index 07:00 December 93.9 - 88.7 -
12/31 Initial Jobless Claims 05:30 December 27 290K - 280K -
12/31 Continuing Claims 05:30 December 20 2368K - 2403K -
12/31 Pending Home Sales MoM 07:00 November 0.5% - -1.1% -
01/01 Market Closed - - - - - -
01/02 Manufacturing PMI 06:45 December F 54.0 - 53.7 -
01/02 Construction Spending MoM 07:00 November 0.4% - 1.1% -
01/02 ISM Manufacturing 07:00 December 57.5 - 58.7 -
Visit Us Online

Get Approved

Download Rate Sheet

Price & Lock

Submit Loan

Resolve Loan Conditions

Conventional Program Guidelines

Government Program Guidelines
For more information, please call:

FHA Programs
VA Programs
USDA Rural Housing
HECM Reverse Mortgage
Conforming Products
FHA Multifamily, PowerSaver

GNMA Issuer
Fannie Mae and Freddie Mac Direct Lender
Licensed throughout the U.S. and Puerto Rico
Privately Held Mortgage Bank for Over 32 Years
Excellent Underwriting / Funding Turn Times

This information is provided solely for informational use and is not intended as a trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not liscensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, price, guidelines, fees, costs, terms and conditions are subject to change without notice.