Mortgage Rates May 20, 2015

Good news so far, the tone was fairly cautionary and most members said a June hike was unlikely.  The chart I’ve attached  goes back to October of ‘14, but the 200 DMA is very important.  If I could draw this back to May of ‘13 you would see that MBS broke below the 200 DMA then and stayed there until April of 14.  They didn’t push back below the 200 DMA until this month.  They have traded close to it since.  If they did move convincingly below it could be a while before they again pierce the mark.  Remember, rates are still great, you just have more to lose by floating than you do to gain at this moment.