MMG - Monday Morning Market Thoughts
Mortgage Market Guide - Monday Morning Thoughts
"Been down too long. Right, wrong, they just can’t stop it” – They just can’t stop it (Games People Play)…The Spinners
Yes, rates have been down too long – but that story has changed a bit since 2018 arrived as rates are at their highest levels in five years. And this morning, the globe is watching the yield on the 10-Year Note as it hovers a whisker beneath “line in the sand” resistance at 3.00%.
Be sure to share with clients that watching Stocks will not necessarily determine where Bonds/Rates go. The Bond market has a mind of its own right now and it continues to have a host of headwinds preventing rates from improving much, if at all from here. Those include:
? Strong economic backdrop
? Rising inflation pressures
? Tight labor market
? Easing geopolitical tensions
? The Fed is buying less and less Bonds over time
? Unprecedented high amount of Bond supply coming to market to fund government
Mortgage Bonds are just above important support, which if doesn't hold, will usher in another round of selling and even higher mortgage rates.
Brand new prospects should be encouraged to get into application and positioned to lock quickly just in case these important technical levels don’t hold.
Enjoy the Spinners