Data for March 23, 2009

Mortgage bond prices opened near unchanged failing to erase the losses from Friday afternoon. Existing home sales data will be released later this morning.

This week the Treasury will auction $98B in 2, 5 and 7-year notes. The additional supply will likely keep prices in check. When discussing rates with borrowers, make sure they are aware of the auctions and the potential upward pressure on rates that may occur.

The auctions begin on Tuesday. The Fed is going to pump another $750 billion in addition to the current $500 billion into purchasing mortgage backed securities. This buying pressure generally helps bond prices rise and rates fall over time. But remember that from a short-term perspective lower rates are not a given.

The Fed is not the only player in the game and buying/selling pressure can come from other fronts. The Fed has been the PRIMARY buyer here as of late and will continue in that role, but we could continue to see choppy trading as we did Friday afternoon as other traders make moves.

Dates for data to be released this week is as follows.

Monday Mar 23, 2009
Existing Home Sales-10:00 am

Tuesday Mar 24, 2009
2-Year Tres. Auction-1:00 pm

Wednesday Mar 25, 2009
Durable Goods Orders-8:30 am
New Home Sales-10:00 am
5 Year Tres. Note Auction-1:30 pm

Thursday Mar 26, 2009
Q4 GDP Final Revision-8:30 am

Friday Mar 27, 2009
7 Year Tres. Auction-1:30 am
Personal Income and Outlay-8:30 am
U of Mich. Consumer Sentiment-10:00 am

Rates will likely fluctuate tremendously through the week. It is best to have your applications in place with your lender and take advantage of low rates should they hit your target. Remember, try to hit the bottom 20% regarding rate, if you hold out to hit the very bottom, chances are you will end up higher than your target.

Have a great week.