What you’re looking is the MBS FNMA 30 Year 4.0% Japanese Candlesticks chart. The value of this security has a direct impact on 30 year mortgage rates. The higher the value you the better it is for mortgage rates and as you can see, it has dropped in value significantly over the past month. Mortgage rates are back where they were before the summer and 7 months of gains have been wiped out in one month’s time.
By all accounts, this is the quickest turnaround in mortgage rates that anyone has seen in their careers. We are living in unprecedented times, the economy is still struggling to find it’s footing, unemployment is high, and we have a stagnant housing market yet rates have continued to rise. It truly defies all logic, who knows where they’ll stop?