S&P Global Composite and ISM Indices both came in lower than expected yesterday, which should be good news for interest rates. However, all the recent “higher for longer” rhetoric is taking a toll on MBS pricing, which has now dropped below the 25, 50, & 100 day moving averages. Hopefully tomorrow’s FOMC minutes and ADP Report help skip pricing back up and over these moving averages, which otherwise will serve as ceilings of resistance to keep prices down and rates up.
