REAL ESTATE TOPICS...The warmer weather has not been kind to Mortgage Bonds

"It’s a cruel, cruel summer." Bananarama. The warmer weather has not been kind to Mortgage Bonds, as recent volatility has caused them to fall below important technical levels. But will it be a "cruel summer" for them, or is a rebound ahead?

The warmer weather has proved to be positive in some respects, as Retail Sales rose by 1.2 percent in May, a big jump from the 0.2 percent recorded in April. Retail Sales measures total receipts of retail stores from samples representing all sizes and kinds of business in retail trade throughout the nation. It is the most-timely indicator of broad consumer spending patterns. Consumer spending is an important piece of the U.S. economy, making up about 70 percent of the nation’s economic activity. May’s reading has boosted hope that the U.S. economy will continue to gather some steam.

Fannie Mae released its May 2015 National Housing Survey. Of note, 66 percent of respondents say it’s a good time to buy a home while 49 percent feel it is a good time to sell a home, the latter being a new high for the survey.

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In addition, research firm CoreLogic reported that completed foreclosures are down nearly 20 percent from April 2014 to April 2015

Looking ahead, the upcoming Federal Open Market Committee meeting could add even more volatility to the markets, especially if members hint about rate hikes down the road, possibly in September or October. With Mortgage Bonds and home loan rates near some of their worst levels of 2015, will they be able to reverse course and improve? Or will it be a cruel summer indeed?