Commentary: The mortgage market is under a little bit of selling pressure this morning. I suspect investors are merely adjusting their positions in front of the three-part, $99 billion Treasury auction scheduled to run from tomorrow through Thursday.
Policymakers from around the world met this weekend to discuss the possibility of beefing up the bailout fund for Greece and other countries currently skating along the edge of sovereign debt default. There was no agreement reached on exactly what course of action to take -- so suggestions by some media sources that the European crisis has begun to abate is very premature.
The European debt crisis will be a day-to-day story, with chatter surrounding a possible resolution likely to nudge mortgage rates fractionally higher. Headlines indicating European financial leaders have yet to cobble out a bailout package containing enough "shock and awe" value to avert a major meltdown of both government and bank debt will tend to be supportive of steady to fractionally lower mortgage interest rates here in the States.
This morning's news from the Commerce Department indicating the pace of new single-family home sales fell 2.3% in August was viewed as little more than a macro-economic footnote by most mortgage investors. A notable drop for new home sales was already well priced into the mortgage market. Sharp declines in the Mortgage Bankers of America's weekly mortgage application survey during the month of August strongly suggested the pace of new home sales would be anemic.
THE MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
