It's 2:45 EST and the bond market is getting whacked harder than a pinata at a 4-year old's birthday party. Since my blog posting this morning, the Fannie Mae mortgage-backed securities fallen even farther down the rabbit hole and the currently stand at -50 bps. That's a hefty loss. Turns out the bond traders figured out that a lot of the financial news coming out as of late points to a serious risk of inflation poisoning our economy.
This is bad news for bonds and the lenders are feeling it. I am getting intra-day reprices for the worse as I type this and that means rates are climbing higher. I locked in two clients early yesterday and got them amazing rates on 30-yr fixed mortgages. Luck? ESP? An overdeveloped cerebellum? Hardly. I just study the markets and pick up on trends. Bonds were overbought and were looking for reasons to sell off and they found just that in the PCE Number (see earlier blog post).
Feel free to comment or ask questions as I am grateful and excited to be part of the Active Rain community. Hope everyone has a Blue Skye weekend!