Good Friday AM,

The 10-yr is back to 1.19%. Funny commentary from Dan Rawitch says it all this AM.

Bonds are ridiculous! I really do not know what else to say. This week has seen only bond friendly news. Fed Chairman Powell testifies to congress the need to keep rates down, essentially offering bond buyers a free put, but yet we continue to fall and showing no signs of turning around. There will be a point of capitulation when this reverses, I just do not know when or what the catalyst will be. As I have cautioned all week, please continue to play defense. I realize rates have not been very impacted by the horrible performance in the ten year bond, but at some point, MBS, treasuries and of course fixed rate mortgages will move together, leaving the deserving borrowers, that tried to squeeze out the last 1/8th in rate, crying on the sidelines.

 
Two quick notes of interest:

• Federal Housing Finance Agency Director Mark Calabria, regulator and conservator for Fannie Mae and Freddie Mac, has offered a timely and desperately needed lifeline for struggling mortgage holders. On Tuesday, Feb. 9, he announced Fannie and Freddie were extending COVID-19 related mortgage payment forbearance to 15 months.

• Real Estate is leading the recovery. Nationwide, 10.8% of saved searches on Redfin.com filtered exclusively for homes priced over $1 million in January. That’s up from 8.5% a year prior and marks the highest share since Redfin started tracking such data in early 2017.

Please remain safe and healthy, enjoy the holiday weekend and first, make today great!