Originally Posted By: Pablo
Originally Posted By: Drew99GT
Originally Posted By: Turk
Look at ARR, NYMY & AGNC the past few days...
They're down on average 10% since QE3's announcement. This is where I wonder exactly what the Fed is doing; all one has to do is chart out bond prices and rates during each QE from start to end and rates/bond prices do the exact opposite of what the Fed publicly states they're trying to do! Rates increase and bond prices drop, to include MBSs.
"One should also note that the effect on mortgage rates depends on what happens to other rates, such as Treasury yields, as well as the spread. But the yield on 10-year Treasuries has risen since QE3. So in effect, the overall effect on mortgage rates could even end up being counter to the Fed's intentions in the end.
http://johnbtaylorsblog.blogspot.com/2012/09/the-eroding-effect-of-qe3-on-mortgage.html
This is what I'm trying to get my mind around as well.
Post 6,500!!
If you don't mind, what's your mind think to do?
Originally Posted By: Drew99GT
Originally Posted By: Turk
Look at ARR, NYMY & AGNC the past few days...
They're down on average 10% since QE3's announcement. This is where I wonder exactly what the Fed is doing; all one has to do is chart out bond prices and rates during each QE from start to end and rates/bond prices do the exact opposite of what the Fed publicly states they're trying to do! Rates increase and bond prices drop, to include MBSs.
"One should also note that the effect on mortgage rates depends on what happens to other rates, such as Treasury yields, as well as the spread. But the yield on 10-year Treasuries has risen since QE3. So in effect, the overall effect on mortgage rates could even end up being counter to the Fed's intentions in the end.
http://johnbtaylorsblog.blogspot.com/2012/09/the-eroding-effect-of-qe3-on-mortgage.html
This is what I'm trying to get my mind around as well.
Post 6,500!!
If you don't mind, what's your mind think to do?
