I’m starting the day very cautiously floating; a lot of technical damage has been done in both the Mortgage Backed Security and Treasury markets. Several very key support levels have been blown through. We are sitting on the next level of support at the 100 Day Moving Average. You can see the next support level below the 100 DMA is over 100 basis points below current level. There is a saying in the financial world, “don’t catch a falling knife.” A falling knife can rebound quickly, but also further even faster should sentiment and momentum continue. The Producer Price Index was tame this morning and housing starts missed by a little, this will all take a back seat to the technical trading picture. I have been in a locking bias for several weeks and although rates are off the historic lows they are still absolutely fantastic.
Mortgage Rates Update 2/18/2015
