The price of MBB (Mortgage Backed Bonds) opened way down for the 3rd day in a row. While I think this is a troubling trend, I think we are near the bottom of the correction because we are now trading below the 100 day moving average as depicted by the yellow line in the bottom graph (30 day price window) and the 200 day moving average depicted by the pink line in the top graph (1 year price window). Mortgage rates are currently up, but it is my hope that patience will prevail and we will see a market correction which will bring rates down some.
The price of MBB (Mortgage Backed Bonds) opened way down for the 3rd day in a row. While I think this is a troubling trend, I think we are near the bottom of the correction because we are now trading below the 100 day moving average as depicted by the yellow line in the bottom graph (30 day price window) and the 200 day moving average depicted by the pink line in the top graph (1 year price window). Mortgage rates are currently up, but it is my hope that patience will prevail and we will see a market correction which will bring rates down some.
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