What is interesting is until today off sheet pricing began after the 4.25% rate on a conforming 30 year fixed; today rate sheets are publishing rates as low as 3.875% on a 30 year fixed. This infers lenders may be preparing for even lower rates, although I must admit there is nothing substantiating this, it is pure speculation.
In fact if we look at our market, it seems as though we have plateaued. The snapshot of our market below highlights this point. Opening at 103.11, we posted early gains and have trickled back down to today's opening price levels. We have seen some support here, but the real fate of our market lies in treasuries.
As you can see the 10 year treasury yield is very close now to 3.000%, currently at 3.03% This 3.000% yield is acting as support for the 10 year. For our market to move higher we will need this support level to be broken and the yield to fall further if we are going to see additional gains in our market. Conversely, if we see treasury yields rise into the "danger zone," I anticipate we will see a sell of in our market leading to higher rates.
Right now the market could swing either way and will be looking to headlines for guidance. The jobless claims figures definitely suggested our economy is far from stable, and the fed comments yesterday support the fact that our economy is anything but healthy. Keep a close eye on the market moving forward.
Posts
No comments:
Post a Comment