Good Monday AM on this last day of August,
Sunning a little behind today so I am including a brief and technical insight from Dan Rawitch. For the rest of us that don’t live in the technical world, stocks are sliding which is helping bonds and then, rates. There is no news today but the rest of the week brings several important reports, with at least one on each of the next 4 days. Nonfarm Payrolls are expected to remain in positive territory on Friday and the unemployment rate is predicted to move below 10% (currently 10.2 and forecast to drop to 9.8 this week).
“Bonds have done well since the open as the DOW is struggling. The MBS is still a tad under Friday’s close. I have been happy to see how well we have stayed above the line of support and respected the current trading range as well as the current upward channel. Treasuries still have downward pressure in price and I do not like the chart. That said, we are sitting on a key Fibonacci level of support and price has so far respected that level. There is no scheduled news today and it is a light news week. I also expect a fairly light trading day on this last day of August. Light days can create volatility and we have already seen that this morning. I would be locking around this current level, unless you think this is the time that we will break through the line of resistance and stay up there. It is a low percentage bet and you would be guessing.”
Just in case you have been asleep and didn’t know this was a good time to refinance, according to Yahoo Finance. Investing sage Warren Buffett, who turned 90 on Sunday, would probably tell you to stop procrastinating. Rates on 30-year fixed-rate mortgages have been dirt-cheap in 2020 and are currently averaging just 2.91%, according to the nearly 50-year-old survey from mortgage giant Freddie Mac. That’s close to the all-time low of 2.88%, reached in early August.
Please remain safe and healthy and make today great.