A slew of partly-cloudy data out today keeps the technical picture for mortgage bonds looking favorable.

Consumer Confidence dropped from 109.5 to 104.1.

Durable Goods orders went from -2.0% to -2.2%.

Delinquency rates are up in both residential rent and mortgage payments.

The BLS Tenant Rental Index for Q4 2024 dropped -2.4% year-over-year, compared to +1.6% in 2023.  This is the first time in 15 years that the Index has been negative, and eases inflationary concerns.

All these help keep hope alive that lower interest rates are around the corner.  The Fed is expected to keep their rate steady at tomorrow’s conclusion of the FOMC meeting.  But believe that what they say will most certainly impact longer-term rates.

Regarding home values, Case-Shiller’s report published this morning corroborates last week’s FHFA calculation that home values have appreciates 4.2% over the most recent 12 months.