Mortgage Rates May 26, 2015
No, I’m not talking about the Cubs fans who are talking about playoff baseball in May (chuckle). The “pennant” is the current formation Mortgage Backed Securities have taken. The pennant is a sharp movement in one direction with a move in the other after, which looks like a flag waiving on the pole; the green lines were added for affect. Typically a pennant formation is followed by a big move one way or the other, so we should see a breakout soon. There is a lot of economic data Tuesday, Thursday, and Friday, so the catalyst is there.