How Long Can Rates Stay This Low?

MBS multi-year Rising Wedge coupled with ultra safe haven trade - the case for even lower rates in weeks to come

Bonds have been trading in a clear, long-term Rising Wedge, after the steep decline in late 2010. In many cases - the Bond will continue to rise over time right into this apex - meaning that rates could end up lower in the weeks ahead - but potentially not without volatility.

Which way will Bonds break out of this Rising Wedge is the $64,000 question that will be answered in the weeks ahead. We could see a continuation higher out of this trend - which could mean even lower rates.

A lot will depend on Europe and Friday's Jobs Report - which will then influence what the Fed does at the next Fed Meeting on June 20th. Will there be more QE and if so, how will the Bond perceive it? If the Bond reacts negatively like it has on past official QE announcements - then the next couple of weeks leading into the June 20th Meeting will really present a wonderful opportunity to line up your clients to get a mortgage as Mortgage Bonds creep towards this apex. This is a technical and fundamental opportunity for rates that won't last forever - help clients see this. One thing we know for sure - when prices break to the downside out of a Rising Wedge - the price action to the downside is typically very fast - like people exiting a building when someone yells "fire".

What To Do With Your Extra Time

Three Must-Read Personal Finance Books

by admin on January 11, 2012

There are many informative and interesting books about managing your personal finances out there. These three are some of the best stand-outs to make a change in the way you view and handle your money.
1. The Intelligent Investor by Benjamin Graham
The author of this book is considered one of the best financial investors of the century, and his advice is still extremely relevant since its original publishing in 1949. His stock market strategies are highly well-respected, and this book will give you a deeper understanding of how to invest your money.
2. The Total Money Makeover by Dave Ramsey
This bestseller is a great overview to managing your finances. It covers getting out of debt, investing, saving for emergencies, college, paying off your mortgage, and much more.
3. The Millionaire Next Door by Thomas Stanley and William Danko 
This book explains what people not just in Beverly Hills or the Upper East Side are doing to make themselves financially successful. It goes over the seven common key traits that the authors have found that wealthier people possess, maybe even your next door neighbor, and shows you how to cultivate them for yourself.
Do you have any favorite personal finance books that belong on this list? Add them to the comments!