Yep… we have a range-bound mortgage-backed bond breakout above current range resistance…

Approaching the previous all-time highs;

It certainly fits with the negative European treasury rates theme…

I don’t see how American consumers could ever see a negative retail rate (getting paid, cash, to borrow,) but it seems inevitable we’re going to see mortgage (and unsecured?) borrowing rates dive even further south than they are today.

We locked a 30 FRM at 3.75% last week, paying the client 2.75% rebate points (and that’s only because the lender couldn’t/wouldn’t drop their lowest rate coupon even lower to reach a no-points “par” rate.)

I seriously think we may tease the top edge of the 2-3% boundary this year, on LONG-term funding.

Not that this means anything on its face… costs of leverage are so low, a 20-50% discount is actually fairly irrelevant at conumer borrowing levels….

It *IS* a piece of the puzzle to factor in on the macro-level though.

Luck all!
Dave Donhoff
Leverage Planner