When the price of Mortgage Backed Securities (MBS) on the above chart above goes up mortgage rates come down. When the price goes down mortgage rates go up.
Below is the news when it happened and market reaction. All of the times below are Eastern Standard Time
Indexes at the end of the day
Fri, Jun 17 5:00 PM - MARKET WRAP UP:
Bonds took a beating in their fight to break through long-standing resistance levels. The 3.0% Fannie Mae 30-yr coupon closed the day down -12 bps to 102.97. Typically when Bonds take a hit, Stocks move the opposite direction. That was not the case today. All markets dropped, with the Dow losing -53.21 bps to end at 17679.89. The S&P lost -6.79 bps, closing at 2071.20. Finally, the Nasdaq was down -44.58, closing at 4800.34. WTI oil saw modest gains, closing up 1.44 per barrel at $48.65. Overseas, European markets saw gains today after “Brexit” campaigns were put on hold. Those rallies clearly did not translate across the pond. As the world awaits next week’s referendum on Britain’s EU membership, time will tell if anxieties and volatility are the new normal.
Fri, Jun 17 11:37 AM - USD LIBOR 1-month .44%, 3-month .64%, 6-month .92%, 12-month 1.23%.