Daily Commentary by Larry Baer: As
I mentioned in this week's edition of "ViewPoint" - the coming five
business days will be a real "snoozer" with respect to potentially
market moving economic reports.
Expectations for an uptick in both August Housing Starts (due on
Wednesday) and August Existing Home Sales (due on Thursday) are all ready well
priced into the mortgage market.
This week's scantily populated economic
calendar will likely leave mortgage investors with little alternative but to
look to trading action in the stock markets for directional cues as they go
about the business of setting mortgage interest rate levels.
If the domestic economic data remains as tame
as expected -- stock prices will likely begin to slip lower as we plod along
until the election.
My models are indicating the Dow and the
NASDAQ are very vulnerable to a downward price correction - if not today - then
most likely by the last two days of the week.
If this assessment proves accurate, capital flowing from the equity
markets back into the relative safe-haven of Treasury debt obligations and
mortgage-backed securities will tend to be 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
