Pricing on mortgages closed down a tick today, holding rates steady. While MBS pricing has risen above all moving averages that now form a precarious floor of support, the 10 Year yield is also above the same moving averages which perform the same function.  For now, that floor is keeping interest rates from moving lower.

The Personal Consumption Expenditures Index will be released this Friday, when the markets are closed (Good Friday) and won’t be able to react.  Consequently, I see stock and bond pulling back to protect institutional positions prior to the long weekend.  But hopefully not enough to cause any rate jumps!

Durable Goods orders came in 1.4% higher this month. That number is below 2.0% so it seems like we should like it a lot; however, last month was a -6.9% retracement.  So this move higher is being being watched carefully.  Also out today, Consumer Confidence is still elevated, but lower than expectations. And last but certainly not least, the S&P Case Shiller Home Price Index shows a 6.6% YOY appreciation rate.  Housing remains strong!