Mortgage rates at a 50 year low?
Mortgage rates are in the news because they are hitting multi-decade lows. While the press is playing it up, the 30 year yields (TYX) is facing a dilemma today. At the close yesterday, the 30 year yields had tested and held our 38.34 support level.
What is significant, is that a very large positive divergence has developed at the same time this support is being tested. The timing suggests that there is a real possibility for 30 year yields to jump up from yesterday's level.
Unfortunately, with the low mortgage rates we have seen in the past few weeks, there have been few takers because consumers have been in a fearful and cautious mood.
With talk about eliminating 30 year mortgages going around, this might be a missed opportunity if not acted upon by new home buyers.
Have a great 4th. of July Holiday ... the markets will be closed on Monday.