MBS Day Ahead: Have You Heard The One About The Uptrend?
Posted To: MBS Commentary
Stop us if you've heard this one before, but rates are low due to an unprecedented global emergency. Unless coronavirus situations deteriorates significantly, it's only fair for rates to gradually push back toward higher levels. But if that's so obvious, why haven't rates already preemptively moved much higher? Why are mortgage rates continuing to operate near record lows? 2 questions there, and each of them has a different answer. Let's break them down. Why haven't rates already preemptively moved much higher? Simply put, markets know that the coronavirus saga has yet to fully play out. Naturally, numbers looked to be getting under control as lockdown measures forcibly created social distancing. But now that most states have eased lockdown measures, epidemiologists'…(read more)