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I know that charts can be super boring, but they say that a picture is worth a thousand words.  That means that I don’t need to write as much for you to see the bloodbath that’s happened to the mortgage market since the election.  You can easily see that the price has massively declined over the last three trading sessions but is finally, hopefully, finding some footing to stop the sell-off.  As I had mentioned last week, crossing the 200 Day Moving Average would incite a price decline/rate hike; it just so happens that the surprise election result coincided with piercing that support level and was just the stimulus to push rates convincingly higher.

Any economic news is secondary at this point.  I suspect that we might see pricing bounce back from here (which is why I broke out the old trampoline)and give maybe half of the losses back.  But I don’t see interest rates returning to pre-election levels prior to the the next Fed meeting a month from now–and even then it’s wishful thinking to expect long-term rates to go lower even then.