State of the Market

Retail Sales lower than expectations at -0.3%.  Stripping out car sales, the number only fell by -0.1%.  That’s the only domestic report out today; the Producer Price Index and the Fed’s Beige Book come out tomorrow.

Greece made a $95M debt payment to Japan today.  Banks in Greece are scheduled to reopen this Thursday after being closed for a two weeks now.  It’s probably pretty easy to find $95,000,000 when the banks are empty and you have complete access.

Our mortgage bond pricing enjoyed a run up for the first week of the Greece debt crisis and has now slid back down to pre-crisis levels from the last week in June.  We have hit a triple bottom and hope that we can continue to hold here.  Looking at the chart for the last two years, this area holds a lot of support, but if pricing falls from here, rates will most likely climb another 1/4% rather quickly.  Stay quick on your feet.