So, what has happened in the last few days regarding Home Loan Rates?
Monday: Existing Home Sales for February were reported at a better than expected pace. February's inventory of unsold homes fell to a 9.6 month supply, down from January's 10.3 month supply. The median home price was reported at $195,900. The market had been expecting a far worse report, so this surprisingly decent read on housing is helping Stocks move higher, and pressured Bonds lower. Last Tuesday's cut to the Fed Funds Rate was the sixth in th most recent cycle that began on September 18th. And once again, Bond prices were worse off, with home loan rates moving higher after the Fed rate cut. Although some are baffled by this, it makes perfect sense when you understand that Fed rate cuts risk inflation, the arch-enemy of Bonds. Tuesday: Consumer Confidence for March plunged to a reading of 64.5, which was far worse than expectations of 73.4 and get this.... the Expectations component, which measures consumers' outlook for the future, is at a 35-year low. Wednesday: A poor Durable Goods reading is helping Mortgage Bonds move higher this morning. The market had expected a reading of 0.8%, so the atual reading of -1.7% has pushed Stocks lower and has helped Bonds improve. But, in this crazy enviroment, it can all change quickly. So we are happy to see the gains, but watching it carefully. New Home Sales came in today over expectations of 580K at 590K. This is not a big market mover. Today Dallas Fed President, Richard Fisher is scheduled to speak. He has not been happy with the Fed cuts and has previously shaken the markets with his inflation warnings. Brace yourself as this could be a market mover. With durable goods showing that Inflation is taking its toll on Manufacturing I think he will be sounding the alarm. I recommend locking today in anticipation of a market move downward. | 
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