Mortgage Rates 6/3/15
We are looking at 3 days of unfavorable movement in a row, yesterday and today, so far, have been the most significant. Yesterday, Mortgage Backed Securities, MBS, opened up with a gap down. A gap down is a lower open than the previous close. This was also significant as it broke below the 200 Day Moving Average, in this case the little blue line that couldn’t hold support.
Today we opened with another gap down and as you can see by the 6 month chart, MBS are at their worst position in 6 months. That still has to be taken with a grain of salt as the worst position in the last 6 months is still one of the historical best. So everyone who took our advice yesterday and locked should be very happy today. In addition to the data released this week and the jobs numbers Friday, bonds are feeling pressure state side because of European bond sell off. Remember, this is all relative, rates are higher than they were last week, but my parents may have traded for an interest rate like today when they bought the house I grew up in in 1978.