Daily Commentary by Larry Baer: A
stronger-than-expected report on April housing starts did not generate much of
a reaction from mortgage investors.
Traders also wasted little time shrugging off a stronger-than-forecast
rise in April Industrial Production.
Modestly improving economic data here in the states continues to take a
back-seat to financial drama playing out in Greece
and other euro-zone countries.
The Greek political struggles dramatically
increase the likelihood the country will go bankrupt before the summer is
out. The threat of such an outcome and the
impact it could have on other countries in the region continues to fuel the
global "flight-to-quality" buying of U.S. dollar denominated assets
like Treasury debt obligations and agency eligible mortgage-backed securities -
a credit market condition highly supportive of the near-term prospects for
steady to perhaps fractionally lower mortgage interest rates.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
