Daily Mortgage Rates Predictions June 02

  

  

  

  

  

  

Rates are still heading higher. 

The ISM Non-Manufacturing Survey beats expectations this morning.  This was the only scheduled economic indicator released today.   Wachovia released it’s CEO Kennedy Thompson today due to continued backlash from Sub-Prime Mortgages.  The Nation’s 5th largest bank lost half of its stock value from last year.  With the ISM report being positive and looming inflation fears, the 200 day moving average appears to be out of reach for mortgage bonds any time soon.  Currently, the Fannie Mae Mortgage Backed Securities are +9bp on the day at 99.28 on the news about Wachovia and struggling airlines.  That is actually -12bp lower since the ISM reported at 10:00am.  We will be keeping our eyes on the stock market to see signs of pain in the economy that may be helpful for low risk mortgage backed securities.