Rates are on the move AGAIN! The MBS Market is down over 100 basis points again and rates are headed for or are already at 5%. I will keep you posted through the week.
Why are rate going up? The risk of inflation has increased which creates risk on the yield of the mortgage backed securities. This has caused the mortgage bond prices to fall.
There are two main factors in the global economy driving this fear of inflation. One is the extension of the US tax cuts which will keep the national debt high and China announcing they are taking measures to slow their economy to head of inflation. See my video for a detailed explanation.
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