22 Jan MBS Continue to Climb
The stock market has been on the rise since Biden took office due to his aggressive vaccination goals and as more stimulus becomes inevitable. Biden has set the goal to vaccinate 100 million Americans in his first 100 days as president despite inheriting what he referred to as a “non-existent plan”. We will see if he and his cabinet can make this lofty goal a reality.
There’s good news for the housing market as existing home sales hit their highest level since 2006. This growth is largely fueled by single family home sales which are up almost 23% from this time last year.
Mortgage backed securities are on a 7 day climb but are facing resistance as they approach a ceiling. MBS have risen with little resistance over the past 7 days. However, this ceiling creates a pivotal moment where MBS could break through and shoot higher or bound downward, loosing all of the gains we have seen. We are holding a locking bias unless you are able to monitor the market.