Mortgages in Conflict With Treasuries; Where’s The Flipping Profit?

Mortgages in Conflict With Treasuries; Where’s The Flipping Profit?

Mortgage rates plunged well into new all-time lows this week, which is a striking turn of events given the vastly different outlook at the end of last week. Specifically, a series of strong economic reports led to significant losses in the bond market (bond losses = higher rates) and gains in stocks. The unspoken warning was that rates had been too complacent in the face of a potential economic rebound. Now this week, markets are singing a different tune . Recently strong economic data was great to see, but with coronavirus numbers spiking in several states, the sustainability of the economic improvement is in question. Sentiment shifted on both sides of the market with stocks giving signals that their recent gains may have been a bit too euphoric . The result was the biggest sell-off since