http://MikesDailyMarketReport.com: The Mortgage Loan Activity reported by the MBA show both Purchase and Refinance sides to have declined from last week, but Purchase side is still showing some resiliency. The BIG wait happened today, as Investors reviewed the FOMC Minutes. As they feared, the Fed is more worried about inflation than they were back in January. It indicates that they will apply 0.5% rate hikes and reduce the Balance Sheet by $95 Billion/month. Once the reduction is underway, then they will look to sell MBS to further reduce it's Balance Sheet. This will add more pressure to Mortgage Rates, which we'll most likely see toward the 2nd half of the year. Both Stocks and Bonds are in Negative Territory. MBS started the day much lower, but had subsided to Unchanged levels just before the release of the FOMC Minutes. Many Lenders repriced for the better; however, once the Minutes were released, then the MBS dropped between 14-23bps, which may lead Lenders to reprice for the worse this time. Meanwhile, the Inverted Yield Curve resurfaced, as the 10 Year Yields spiked up to 2.62% (while 2 year sits at 2.52%).
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