New home sales hit the largest increase in 47 years.

Mortgage bonds prices remain negative this morning piling on top of the already bad day of trading yesterday.

Durable goods orders fell 1.3%, weaker than the expected 0.3% increase. Unfortunately the data is being overshadowed by talk of the Fed selling assets off their balance sheet. More supply pressures prices down and rates higher.

Yesterday Treasury secretary Geithner made remarks about Fannie Mae and Freddie Mac that have the market unsettled. Geithner said they were a “colossal mess, colossal mistake, never should have happened.” He said the administration plans to “change that system completely” next year. Those remarks don't really instill much confidence in mortgage backed securities.

New home sales rose a shocking 26.9%. This was the largest increase in 47 years and just added fuel to the fire of an already negative mortgage bond market.

Existing Home Sales Increase 8.2% in February

Nationally, the number of buyers who wrote contracts to purchase previously existed homes increased sharply exceeding analysts expectations for the month of February. 

Home sales had been sluggish during the winter months due to the unusal weather patterns and the Mid Atlantic regions having several larger than expected snow storms. 

Additional thoughts for the increased business is that the Federal Government has offerred the First Time Homebuyers tax credit of up to $8,000.00 and an existing homeowners credit of $6,500.00 if they were to move and buy a new primary residence.