Daily Commentary by Larry Baer: The mortgage market is struggling to find its
footing as the credit market braces for the Treasury Department's sale of $16
billion worth of 30-year bonds later this afternoon. Yesterday's sale of $24 billion worth of
10-year notes drew softer-than-expected demand from domestic investors -
creating concerns today's sale may be weak as well.
Economic news released earlier this morning
showing the number of Americans filing first-time claims for government jobless
benefits dropped by an unexpected 6,000 during the week ended August 4th
added to the gloomy mood in the mortgage market.
A second report from the Commerce Department
showed the trade deficit, the difference in value of the nation's import and
export of merchandise, narrowed to its smallest level since December 2010. Immediately after the much better than
expected trade report hit the "wires" economists began revising
upward their estimates for second-quarter economic growth - a process that
brought a bit more selling into the mortgage market this morning.
Be patient - be disciplined - and play it by
the numbers outlined above.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
