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Saturday’s: 9AM 1590 AM/97.9 FM KVTA
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Listen Live
Saturday’s: 9AM 1590 AM/97.9 FM KVTA
Sunday’s: 7AM K-EARTH 101 FM
Rate sheets this morning likely to be similar or slightly better than yesterday, and reprice risk on the day is moderate. Bonds showing some signs of recovery this morning, but nothing to get too excited about. Rates have quickly moved up to match this years highest levels already after the Fed meeting, but I think we may see worse before it settles. Rates shouldn’t move too much higher though, and are likely to fall back to these levels, but in the meantime I still advise locking just to be safe, since we may find ourselves in a new range between 7.5% and 8% rather than 7 – 7.5%. Markets are still coming to term with the Fed’s “higher for longer” messaging, and so are borrowers.
I’m in a locking bias, because I do think rate sheets will worsen, and that it is possible I could be wrong about how bad it will get. There is no reason NOT to lock right now, at least not anything closing in the next 45 days. Remember though that rates are cyclical, and we are likely to see these levels again even if we do see them move higher for a little while.
Technicals:
The UMBS 6.0 coupon is at 99.15, +10bps on the day.
The 10yr Treasury yield at 4.47 and have already tested the 4.5 that I said was coming. If this level holds for the 10yr it will be a good sign for rates… if not, we could be in a bit of trouble as rates will likely move higher and stay there for awhile.
