Mortgage Rates are fantastic! This week we have seen a nice rally in Mortgage Backed Securities (MBS) pricing, and remember as bond prices rise, yields drop. This morning, the MBS is down slightly on the day and the ten year is doing great. This current trend in Treasury and MBS is rolling, so long as the MBS can hold above the 100 day moving average, then this upward momentum will hold. We are nearing some pretty good resistance on the 10yr TSY (see below) but I continue to see the type of price action and the favorable indicators that are necessary to break above the next resistance level.
Bottom Line: There is no scheduled news today but COVID is weighing on the market and this is good for bonds. Beware of a stimulus surprise in the coming days which could temporarily derail our bond rally, because of this unforeseen data, I am recommending clients lock as escrow opens.
SOURCE & AUTHOR |
Keith Murphy Branch Manager – Essex Mortgage NMLS #330827