Rates Are In Big Trouble, But Why? Could Home Prices Cool This Spring?

Huge Mortgage-Specific Weakness The rate reset continues. Just when you thought 10yr yields surely couldn’t go any higher, they did. New intraday highs of 1.394% in 10yr yields, and closing near the 1.37% inflection point. MBS aren’t happy about it. When rates spike this quickly, MBS typically have to undergo a fast and painful repositioning of relevant coupons. The current iteration has seen 2.5 UMBS take the place of 1.5 coupons in just a few short weeks. But even 2.5 coupons got killed today. Multiple lenders repriced for the worse–some of them more than once. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Leading Economic Indicators 0.5 vs 0.5 f’cast Market Movement Recap 08:40 AM Heavy selling overnight in Asia. 10’s hit highs of 1.394. Better buying in Europe despite stronger data
Rates Are In Big Trouble, But Why? Could Home Prices Cool This Spring?
Rates Are In Big Trouble, But Why? Could Home Prices Cool This Spring?

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