Quick post on mortgage rates as mortgage bonds sit at a key technical level. Reminder, as mortgage bond prices go down, rates go up and vice versa.
If you look at the 3 month chart below on mortgage bonds you can see they've been moving lower in price.
Take important note of the green line I drew. That line represents a level that has proven to be stiff price resistance to any move higher.
Well, today's positive action in price (up) is breaking that trend line. Will this hold? Will bonds head higher in price? I don't know. Let's keep a close watch.
