Daily Commentary by Larry Baer: Trading activity in the mortgage market is much
lighter than normal this morning as residents on the U.S.
east coast prepare for a large snowstorm in the region.
The next major focus
for mortgage investors will be Treasury's sale of $72 billion in new debt next
week. The Treasury will put $32 billion of three-year notes on the
auction block on Tuesday, followed by $24 billion of 10-year notes on
Wednesday, and $16 billion of 30-year bonds on Thursday.
Next week's economic
calendar will be sparsely populated with Wednesday's January Retail Sales
report dominating Thursday's weekly jobless claims data and Friday's Industrial
Production and Capacity Utilization figures.
The directional
trend of mortgage interest rates for the balance of the day and over the course
of the coming week will be most influenced by trading activity in the stock
markets. Lower stock prices will tend to support steady to perhaps
fractionally lower rates while higher stock prices will likely exert some
modest upward pressure on mortgage rates.
THE MARKET
IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
