Mortgage Rate continue going higher daily. The yield on the 10yr Treasury (closing moves with mortgage rates) jumped this morning to 2.50%. MBS had yet another gap down in price and slid through yet another support level (see chart below and notice we have lost 550 basis points in 180 days!)
We currently in an environment unlike anything we have ever seen before!! We have a gas crisis like the 70’s, inflation of the 80’s, a stock market correction like the late 90’s and housing affordability nose diving like we had in the early 2000’s. All of these independent events up until now have been unprecedented. Now they are all occurring at the same time. Nobody can know for certain what the FED is going to have to do to rates to stop inflation. Now add to all of this….Putin. Hold on tight and stay focused on what you can control!