6/24/16 Brexit

June 24th, 2016

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.

The chart above was created at 9:48 am et.  On this chart you will see that bonds are close to a 2 year high.  This is due  to money moving out of stocks and into bonds. This volatility was created by the UK's decision to move out of the European Union (Brexit).

Below is the news when it happened and market reaction.  All of the times below are Eastern Standard Time

9:42 am et - Indexes Below

indexes 160624 942 am et

 

Fri, Jun 24 9:33 AM - Soon after the open, the Dow is down 536 points.
Fri, Jun 24 9:32 AM - The VIX, or the fear factor, surges to 24. The higher the number, the more fear there is in the Stock markets. It closed at 17.25 yesterday. 
Fri, Jun 24 9:24 AM - The UK vote is now seen as the biggest blow to the global financial system since the 2008 financial crisis.
Fri, Jun 24 9:12 AM - The Fed is carefully monitoring the markets, prepared to provide dollar liquidity.
Fri, Jun 24 8:41 AM - The 3% Fannie Mae 30-yr coupon rises above the wall of resistance on the UK vote.
Fri, Jun 24 8:36 AM - UK Prime Minister Cameron resigns after the vote.
Fri, Jun 24 8:33 AM - Economic data takes a back seat to the UK leaving the European Union.
Fri, Jun 24 8:31 AM - May Durable Orders -2.2% vs the -0.6% expected.
Fri, Jun 24 8:20 AM - All major currencies that are not the U.S. dollar or Japanese yen are sharply lower as are oil prices. Gold is up 4.59% to $1,321.
Fri, Jun 24 8:19 AM - World financial markets are in shock mode.
Fri, Jun 24 8:18 AM - WTI oil -$2.32, at $47.79.
Fri, Jun 24 8:15 AM - 10-yr T Note yield 1.52%, lowest in four years.
Fri, Jun 24 8:12 AM - Pound sterling plummets to 30-yr low. U.S. dollar index 95.83, +2.29.
Fri, Jun 24 8:11 AM - Treasury prices, MBS surging.
Fri, Jun 24 8:04 AM - Gold prices surge.
Fri, Jun 24 8:03 AM - U.S. Stocks sharply lower, Dow futures -500 points.
Fri, Jun 24 8:02 AM - In a surprise result, the UK exits the European Union and the euro currency. Stocks around the globe plunge.

Contact

John Marbury
jmarbury@nationalbankofcommerce.com
Mortgage Lender NMLS# 514390
NMLS# 740833
Phone:205-266-5669
Fax: 866-217-4174

813 Shades Creek Parkway
Birmingham, Alabama 35209
 

Mission Statement

To be the simplest and most informative mortgage website on the market today. To make the mortgage process as easy as possible, by informing and educating the consumer on what to expect and how much it is going to cost.

Sign Up Now!