New Range Establishing - Good News For Interest Rates

There is really only one way to start off this post and its with a graph:

As you can see I've put some notes on this one... The long graph is a month snapshot, which you can clearly see has a nice upward trend leading us to lower rates. The green horizontal arrow at the top is the current peak of the market. I have identified this as the high because it is the high of the year (let me remind you high points on this graph represent the lowest rates of the year). The blue lines suggest a new range of trading which is clearly above resent levels leading us to better rates.

Finally the small graph in the top left hand corner is the last five days trading. I included this because it demonstrates roll this month and a clean recovery back to current trading levels. We will discuss roll in detail in another post, but essentially it is when traded notes move into the next month - May turns to June in this instance.

So are these rates likely to hold? I think so, at least in the short term. There is major news in the markets today that have lead short term equities markets lower (Dow is down over 200 right now) while people rush into long term markets forcing our market up and treasury yields -a main competitor - down. All things considered its a good day in the market for home loan interest rates.

Moving into Monday weekend news will be watched closely primarily for resolution in international markets. Assuming no resolution, Monday should support today's gains that I already expect to hold.

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