Mortgage Rates 8/31/15: Mortgage Backed Securities are stuck between the 100 and 200 DMA; the 200 DMA has been very hard to stay above as you can see by the numerous turn backs the past few weeks. The 100 DMA has recently been a pretty strong floor of support, so who is going to win? Well, we have a lot of data this week starting with the Chicago PMI that was a tad weak which caused bonds to sell off a little and stocks to rally some off their lows. Manufacturing, ADP and Jobless claims all follow this week. As shown by the weak data this am the bond markets want a rate hike, they will improve on it and rates will get a little to a fair amount better. This is counterintuitive to everything that my economics classes taught me, but this is how the trade is working now. So, if we see strong data this week that would give the Feds what they need to hike, rates should get better!
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