So you might have heard there is this super secret satellite dropping from the sky. How does this relate to mortgage rates you ask? They don't really - except the mortgage bond chart looks very similar to the degradation of the orbit of USA 193.
The chart on the left shows the orbital height of USA 193 - the chart on the right shows the mortgage bonds at the close of business today. The chart shows bonds going down which means rates are going up.
We had a late afternoon rate increase today (represented by the really long red bar on the right side of the chart). It caused conforming rates to go up by 1/8% today (loans under $ 417,000). Jumbo rates took one in the face again with already high rates jumping 3/8% from earlier pricing.
Back to the satellite - the US government has decided to try to shoot down USA 193 tomorrow around 9:30pm EST. If it works as planned - the satellite will fall harmlessly in the Pacific Ocean. We might be in for a treat tomorrow night if some of the debris burns up overhead while the lunar eclipse is going on.
Should be a busy day for the mortgage bonds tomorrow. The biggie - Core Inflation is scheduled to be released at 8:30am. Core inflation is the measurement of inflation minus fuel and food. Mortgage bonds really don't like inflation - if the number is higher than expected - we could see some significant worsening in rates. If the number comes in as expected or even lower - we might see a welcome lowering of rates.
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