Wednesday, August 14, 2019

Daily Market Report 8/14/19  There's no economic data to report today.  Stocks are being driven downward today (DOW down over 600 so far) on worries of the final Yield Curve Inversion.  The 2 year Yield finally inverted with the 10 year Yield.  This is important because it's been a very good indicator or signal that either we're in a recession or will be heading into a recession.  Again, this is not what causes a recession, but just an indicator or signal (so, not to be mistaken of what puts us into a recession).  This, coupled with more negative data from around the world, is spooking the Markets.  As a result, the MBS is Up 31bps, so we have improvement with our Mortgage Rate pricing; however, the Market did deteriorate a bit more yesterday afternoon, and there was a re-price for worse pricing.  Yields are testing it's first floor of support, and sits at 1.586% currently.

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