So, a pair of ducks was walking down the middle of my street this morning, saying hi. A nice sign of spring and the change of season!
Saw Lake Tahoe had 10 inches of snow last night, wish I was driving up for a ski trip from my old place.
But, back to spring!
Take a look at this 6 month chart on the FNMA 3o Year 3% coupon trading. Take a look and then I'll continue on with what we can derive from it.
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| FNMA 30 Year 3% |
That line shows the area in price where resistance to further upward movement exists. However, in early April the price broke through. Interesting to note as it appears this is the clue to the trend change in motion.
After breaking through this resistance area, the price came back down and has since went up. This shows a base of price support now exerting itself.
What does this mean for our future?
Expect mortgage bonds to be in a 2-3 month upward move. This should bring us slightly lower mortgage rates in the months ahead.
Heck, with the Dow Jones hitting a record high why not set a new record low for mortgage rates?
Seems to make sense with the nonsense of today's financial markets!
Brett
www.brettgrendahl.com
@brettgrendahl
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