The mortgage market has been like a rollercoaster this year with huge swings up and down but at the end of the ride you end up exactly where you started.
This week was no exception. We opened the week on the 30 year mortgage backed security bond market at 97.5 and ended the week at 97.875 just 37 basis points higher. But here is what happened during the week, on Wednesday the market moved from 97.5 to 98.625 that’s a whopping 112 basis points. That is huge. Even more remarkable the low for the week was 97.406 and the high was 98.625 that’s a change of 122 basis point. Remember when the bond market raises fixed rate mortgages rates decrease and as the bond market decreases mortgage rates increase.
As you can see just like a rollercoaster we go up, we go down, and end up right where we started.
You are probably wondering what happened to mortgage rates. We started the week with 30 year mortgage rates at 6.875% and ended the week at 6.75%. That’s not much of a movement. The biggest benefit of the swings this week is we broke a very strong resistance level which has turned into an equally strong support level and it keep the bond market from falling even further on Friday.
So stay tune, we may have an even rougher rollercoaster to ride next week.
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