Alert to Lock the MBS broke below the 200 day moving average, on rising inflationary news. Tomorrow we have the CPI numbers which could further erode the bond market given that we did fall through that 200 day floor. To exasperate the issue we fell off the Up Escalator, putting a short-term end to our rate rally.
This week we are looking at Bond auctions and some inflation reports at the end of the week, click to play the rate report and find out if I’m locking or floating… Don’t forget to subscribe!
Rates stay pretty much unchanged this week, with little economic news reported. Take a look at the chart and notice how a crossroad is emiment in the very near future. MBS are near unchanged today…lock short, float long.
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This week in preview we look to Thursday for the only real market moving reports, also I am recommending locking 30 day closings and floating longer transactions. Mortgage rates improved from last week. Volatility should be low this week. MBS are still pressed up against the 200 day moving average.
After 14 straight days of positive Fannie Mae 4% coupon closings, the bond finally looks to be at a crossroad. The attach video shows the 14 day rally, the huge battle to break through the triple overhead layers of resistance and todays head on collision with the 200 day moving average. What is the market to do? Tomorrow we have the Jobs numbers hitting the wire at 8:30EST, this usually volatile report could either catapult the Mortgage Bonds higher and further the rally or kill it off and cause a massive selloff, which by the way the bond market is ripe for. Its going to be interesting to watch.
Posted in Daily Updates
Tagged bonds, Fannie Mae, MBS, Mortgage Bonds, moving average, rates, volatile
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