Falling Rates in a Post ‘Brexit’ World Lead to Rally in Agency MBS Prices; But Will Cooler Heads Send Rates Rising Again?
July 1, 2016
Since the United Kingdom voted to leave the European Union a week ago, interest rates in the U.S. have been steadily falling, causing a rally in MBS prices. According to market watchers, Fannie Mae/Freddie Mac MBS values for new securities haven’t been this good since January 2015. Meanwhile, mortgage rates touched a three-year low the past few days with some primary market lenders making new loans at 3.25 percent and no points. As Inside MBS & ABS went to press, the benchmark 10-year Treasury was yielding...