What is Happening in the Mortgage Market

Mortgage Bonds are trading nicely higher this morning at the expense of Stocks, which are under selling pressure following news that England and Germany have said their economies will be slower to recover than previously thought. This is driving mortgage rates down roughly 0.125% lower than yesterday.  Review our home page for today's rates, www.MortgageProsUs.com

Also adding pressure to Stocks was a worse than expected Retail Sales Report, which showed consumers tightening their purse strings. Retail Sales for April came in at -0.4% versus the 0.0% expected and after stripping out auto sales, the number was -0.5%, quite a bit lower than expectations of 0.2%. Adding to the weakness of the Report were downward revisions to the prior month's numbers, thereby making those already lousy readings even worse. It was the 8th decline in the last 10 months for headline Retail Sales, and until we see a boost in consumer confidence and further improvement in the job market, Retail Sales will likely languish.

Bond prices are higher so far this morning, but already well off the best levels seen earlier in the day. A look at the Bond Page shows prices piercing overhead resistance at $100.31 but then backing off and moving lower. You can also see how the last two times we visited this level, pricing worsened rather quickly. Bottom line - continue to float carefully, and be ready to act upon a reversal.

Richard Woodward

Banker / Senior Branch Manager

Because You Deserve The Best

Mortgage Pros is Now Envoy Mortgage

Office: (972) 661-5136 Fax: (972) 314-9647

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.MortgageProsUs.com

Residential and Commercial Mortgages