Posted To: MBS Commentary

It's been almost exactly 3 months since the quick rate spike in early September. That, of course, followed an impressive run to the lowest rates in more than 3 years in August. The combination of those long-term lows and the quick bounce set the stage for a consolidation trend that's been intact ever since. That's not to say that yields haven't traveled outside those levels, but not in a meaningful, sustained way. Even then, we could simply say that yields haven't ventured back into the previous range since breaking into the current range in August. The dividing line is roughly 1.96% in terms of 10yr yields. If we approach the range in horizontal terms, the week begins with rates almost perfectly centered in the most recent section of the range. It's possible that the…(read more)

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Source: Mortgage News Daily