Monday, December 17, 2012

30y mortgage rates have stopped declining

As discussed a couple of weeks back (see post), the primary dealers had built up quite a position in MBS (mostly agency paper) - in what started to look like a crowded trade. Some of those positions have been reduced in recent days, causing long-dated agency paper to sell off somewhat (following treasuries lower).

30y 3% coupon FNMA bonds (price) (source: MortgageNewsDaily.com)

As a result, the 30y mortgage rates have bottomed - for now.

source: Bankrate.com




SoberLook.com
From our sponsor:
Related Posts Plugin for WordPress, Blogger...
Bookmark this post:
Share on StockTwits
Scoop.it

*** Please help keep Sober Look going by viewing the following messages from our sponsor: