Weekly Mortgage Overview: 12/15/2014

By December 15, 2014Mortgage Overview

Mortgage Backed Securities (MBS) Overview

The stock market (DJIA -99.99) closed way down and moved in the same direction as MBS.

This was a fairly uneventful day, with the MBS market poised for a sell-off after the big run-up on Friday. MBS were pressured by stronger than expected production news but buoyed by another decline in oil.

Industrial Production: This week started with much stronger than expected Industrial Production (1.3% vs estimates of 0.6%) and Capacity Utilization (80.1% vs estimates of 79.3) which pressured MBS in early trading.

Home Builders Index: Fell from 58 to 57, but that is still a strong reading considering anything above 50 is positive. MBS were not impacted by this report.

Oil, Oil, Oil: Fell another -$2.49 down to $55.32 and provided support that kept MBS from selling further.

Tomorrow: There will be Building Permits and Housing Starts…generally these are not major market movers but they are the only thing on the radar for Tuesday.