Are Mortgage Bonds about to revisit the best levels of the year?
Last week was a great time for clients to lock. But new clients may be given another opportunity to capture the lowest rates of 2016.
As the chart shows, Bonds are trading sideways along a support level - one defined by former resistance. The longer the Bond can stay above the black line, the more formidable that support becomes. This means the recent pricing gains may just be pausing before refreshing and moving higher again.
Want more good news? There is not a lot of risk in floating to see if it plays out, as prices are trading just above support. If prices move and convincingly close beneath this nearby support it will be time take our chips off the table and lock again.
Have a great weekend.
Bill