Good economic news = Higher Mortgage RAtes
MBS are down -6/32 (FNMA 30-yr 3.5 at 103.01), around 6/32 lower than yesterday at this time.
MBS responded in the typical fashion to stronger than expected economic data this morning. July Retail Sales rose 0.6% from June, well above the consensus for an increase of 0.3%. Excluding the volatile auto component, Retail Sales rose 0.5%, above the consensus for an increase of 0.3%. The results for June for both readings were revised significantly higher as well. The Empire State regional manufacturing index jumped to 25.2, far above the consensus of 13.0. July Import Prices rose 0.1% from June, matching expectations. The Dow is up 10 points. No more economic data will be released today.