Hello, hello everybody, Sean Zalmanoff here, USA Mortgage, Sean Z team. Happy 2021. I was just typing that this morning and that felt a little weird, but also great because as great at 2020 was in some aspects, definitely ready to move on and I think a lot of you are too.
Not a lot of news this week, but some huge news, of course, happening tomorrow. The Georgia runoff for the Senate happens tomorrow and the control of the Senate is in play based upon what happened. Interesting outcomes could present interesting things that happen in our market. Last week we talked about showing you some technical, so let’s just get a little technical real quick and then send you on your way for the week.
Let’s look at the most important thing that we need to show you today. Here is what’s going on in the market. These things, again, that I like to track and advise you and your clients on when to lock in the rates are called candlesticks. Every candlestick represents a day of trading in the market. This pattern that we had back here on December 28th happens to be called the bullish engulfing pattern because it opened lower than the day before, and then closed higher than the day before. When that candle encompasses all that, it means rates are probably going to improve. As you can see here, the price of bonds went up. As you know from previously, when prices go up, yields drop and that means rates drop. Then we hit smack on this level of resistance that we have again, and that is causing us to stay right at this level. Which, if we just draw this picture out for even a little bit longer, the broken record of rates are once again at the best ever.
We are opening January of 2021 with, again, mortgage backed securities trading at the best they’ve ever been. If you thought you missed out on a refinance, if you thought you missed out on buying, time is still here, it’s right on your side to be able to do this for you. And yes, you are not too late. As the beginning of March last year, there were almost $8 trillion in loans that could be refinanced. We refinanced about 2 trillion of those as an industry last year. So if you haven’t taken advantage of these rates, call me, call my team and let us help you take advantage of that. If you’re going to be buying soon, definitely let’s get started on your processing. Get you pre-approved so we can get your offer accepted ahead of everybody else’s here.
Once again, I am Sean Zalmanoff. As you know, my team’s always here to help you and cheers to an amazing 2021. Have an awesome day and awesome week and see you next Monday. Peace, y’all.