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.
Marty Chenard is an Advanced Stock Market Technical Analyst that has developed
his own proprietary analytical tools and stock market models. As a result,
he was out of the market two weeks before the 1987 Crash in the most recent
Bear Market he faxed his Members in March 2000 telling them all to SELL. He
is an advanced technical analyst and not an investment advisor, nor a securities
broker.
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