Posted To: MBS Commentary

2021’s rate spike is big enough and has been going on long enough that there is widespread speculation about how much worse it could get. While it is true that more pain would only increase the odds of a bounce, it’s also true that we’ve seen more pain on several occasions where many market participants thought we’d bounce. Point being: rates can keep going higher from here despite the hope or expectation of a bounce. But “going higher” can take several paths. One common path with moves this big is for rates to level-off for several weeks (or even months) before continuing higher. This ” hitch ” in the trend could already be taking shape, and today’s 10yr Treasury auction is well-positioned to let us know if we should continue to hope for such things…(read more)

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Published On: March 10, 2021 / Categories: Mortgage News /