Rates Improve this Morning

Rates Improve this Morning

This morning, mortgage backed securities broke above the double ceiling of the 25 and 50 day moving averages that we talked about on Wednesday. With no real ceiling of resistance between where they are at now and where they were as their high point at the beginning of August, there is a lot of room for improvement.  If stocks continue to decline, we will see rates improve. However, if we have a strong jobs report next week and stocks rally, we could potentially see securities drop back below their moving averages.

 

There’s good news for the market regarding mortgage forbearances. Black Knight found that the rate of loans coming out of forbearance is accelerating. On the 22nd, they found that 6.8% of all mortgages were in forbearance, down from 7% the week prior – a drop of 95,000 loans.

 

The suburban home market continues to soar as more and more people relocate to larger homes on bigger lots to avoid the anxiety of being stuck in in a small home during COVID. The  number of suburban home listing across the US has dropped by over 40% from last year. We will continue to see strong demand and bidding wars in this sector.

 

We are holding a locking bias with the big news week ahead. However, it you are able to closely watch the market, there are potential gains.