Mortgage Bonds Holding Their Ground Today

Look at the green candlestick line on the far right of the chart below.  Why?  Well, that shows the positive action of today's trading in mortgage backed securities.  When those prices go up, mortgage rates go down and vice versa.

Now, looking ahead, if we see continued price strength and a resumption of the uptrend seen in this chart we should see rates get back to the levels seen last week.

That big red candlestick line on the right hand side of this chart was last Friday.  Why the price decline on that day?  Well, that was the monthly Jobs Report number and it came in better than expected.

Now, one report does not make a trend so let's wait and see where mortgage bonds go from here.

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