The Smart Team of NOVA® Home Loans

MBS RECAP: Slightly Stronger, but Far From Finding Answers

Posted To: MBS Commentary

Bond markets have a question. Will we or won't we be heading back into the sideways, post-election rate range? for top tier mortgage rates, the range is roughly 4.125-4.25%. For 10yr yields, it's the 2.3-2.6% range that we've been discussing for months. Today's trading was positive for bond markets, but it didn't offer a comment on the aforementioned ranges. 10yr yields ended the day right at 2.2999 (let's call it 2.30%). While that's better than a definitive move back above the 2.3% range boundary, it's certainly not enough of an improvement to suggest a great willingness to remain below the rate boundary. In other words, rates are waiting for the next big move . We had a distinct rally from mid-March to mid-April, then a distinct correction since April 18th…(read more)

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Source: Mortgage News Daily

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