The last couple months we have seen the MBS market accelerate its sell off. The question is: where will it end or settle out? The FNMA 4% coupon chart looks to a 4 year support level at 101.56. Since last September we have lost nearly 350bps, with 230bps peeling off in just the last 2 and half months. To get to the 101.56 support level the market still needs to shed 75BPS leaving mortgage rates to increase another .125-.25%. If you are looking at buying or refinancing now is the time to lock in a rate.
