Kind of late in the day, but I wanted to share this graph showing that the 30 year MBS 6.5% coupon has started and ended the day above the 200 day moving average for the first time since early May. We have a lot more momentum on our side this time around and the dovish inflation data to back it up. I saw a few reports over the weekend from various sources claiming the Fed will make six rate cuts next year. I’m not quite convinced of that and frankly I hope it doesn’t happen that fast. Before booing and hissing hear me out! I LOVE low rates, but I am concerned about the underlying state of the economy that would necessitate the drastic drop in rates.
Maybe I’m wrong. Hopefully I’m wrong! Bring in the lower rates!
