Blog

by Ben Bauer

Mortgage Bond prices are modestly higher this morning after losing some ground in yesterday’s session.

There is no economic data to influence trading, while geo-political headlines are also absent.

S&P futures are higher as General Motors beat earnings estimates by a wide margin, Boeing upped its full-year outlook after an earnings beat, while the bullish tone is shrugging off an earnings miss by Coca-Cola.

The big Mortgage Bankers Association (MBA) conference just wrapped up in San Diego with some interesting forecasts for originations. The MBA released its forecast for 2016 originations saying it sees a 10% increase in purchase originations in 2016 compared to 2015 to $905 billion. However, refinance originations are expected to decrease by one-third to $405 billion. On net, mortgage originations will decrease to $1.32 trillion in 2016 from $1.45 trillion this year.

The MBA went on to say that it expects jobs to increase in 2016, GDP to be 2.3%, while interest rates will rise next year, but will remain below 5% for 30-year mortgage rates.

Mortgage Bond prices continue to trade sideways and have been trapped in this pattern since the beginning of October, unable to break above current levels.