Weekly Mortgage Overview: 1/5/2015

By January 5, 2015Mortgage Overview

Mortgage Backed Securities (MBS) Overview

The bond market is back. For the first time in two weeks, all the traders are back at work with normalized trading volumes, and those traders bought the heck out of long bonds amid deflation fears out of Germany and a huge oil sell-off.

Germany: Long bonds got a nice boost this morning on the very weak CPI data out of Germany as it hit the lowest levels since October 2009.

Oil: WTI tanked to below $50 per barrel (currently $49.87) on fears that the Russian economy is so crippled that they will need to dump their oil at any price possible in order to just get some form of cash back into their coffers.

Total Vehicle Sales have been dribbling out throughout the day with no final yet but the market is expecting a reading around 16.9M which shouldn’t impact pricing.

The stock market took a pounding from a variety of fronts. It started from weakness overseas that rolled over into the U.S. market and then picked up steam as big hedge funds and traders dumped stocks (after 2014…so as to not get hit with the gains on their 2014 taxes).

Tomorrow will be the first important release of the week with ISM Non-Manufacturing. The market is expecting a very strong reading in the 58.5 range.