Yesterday's Home Sales figured beat expectations by a bit for the first time in a long time. The market rode that wave all the way to close which drew a lot of money out of the Mortgage Bond market, forcing interest rates up.
It had seemed for a moment that traders and analysts forgot we are headed into a full blown recession! Fortunately the consumer confidence numbers served up a sobering slap in the face about 10 minutes ago coming in with the weakest reading in years.
Mortgage Bonds are immediately reacting and improving on the news.
Other news saw home prices continue to fall at their worst levels since the Case-Schiller Index began reporting.
Store Sales were tepid and come with the caveat of Easter spending.
It was a fairly low volume day yesterday for mortgage trading so the bears ruined the fun for everyone. We'll get some if not most of that loss back today assuming no remaining headline shockers send us in the opposite direction. Right now, we continue to move in the right direction even as this is being typed. Take a look at the rest of the scheduled economic reports for the week, such as GDP, Durable Goods Orders, Consumer Sentiment, etc... if you think these will take a page out of Consumer Confidence's book and come in lower than expected, floating your interest rate is a calculated risk that could pay off.