WTMS Blog Today = What’s up in Mortgage Today – 04/12/24 > > > >

The mortgage and bond markets finally saw some relief today, with UMBS opening up by a significant 27 basis points. This uptick came as a welcome change after a tough week. The improvement was largely driven by positive inflation data from Europe, which also bolstered US Treasuries. In domestic trading, speculation about flight-to-safety investments emerged as stocks dipped and bond yields decreased, reflecting increased geopolitical tensions and market caution. Import and export prices showed modest changes, aligning closely with forecasts, adding some stability to the market expectations. Despite these gains, the bigger picture remains dominated by concerns over persistent inflation and economic uncertainty. Notably, Boston Fed President Susan Collins indicated a cautious stance towards lowering interest rates later this year, highlighting the need for more convincing data on inflation’s trajectory. Meanwhile, housing affordability issues persisted as median mortgage payments rose significantly. Overall, the day closed on a positive note for UMBS, which ended up 20 basis points at 99.76, suggesting a cautious optimism in the market.

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