It's a great Thursday, lots of sunshine. I like it!
Looks like mortgage bonds like today too as they are up big after being hammered the past week or so.
Take a look at this chart below. Remember, green is good for lower mortgage rates.
The technical pattern formed by the past three trading days is a variant of a Morning Star Candlestick pattern. You don't need to know what that is just what it means. What does it mean?
Well, after a downtrend, the appearance of this pattern means that a price bottom looks to have been found and we should see higher prices in the days ahead.
Higher prices for mortgage bonds means lower rates.
This might coincide with a pullback in the equity markets. It has been a very long time since the stock market has had a 5% pullback.
For now, it looks like better pricing on mortgage rates in the coming days.
Brett
www.brettgrendahl.com
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