Yesterday the 10 yr. note closed at its highest rate since the start of the rate increases.  This morning set a new high at 1.98%, as MBS prices are once again under pressure and the Bond market is heading towards its first loss since January.

Today has no economic data and all of the focus is on tomorrows releases for the Fed.  Many believe that monetary help has run its course and has not achieved its goal.  With unemployment still high and no inflation, the outlook  for economic recovery does not look good as a result of little to no pricing pressure to motivate consumer spending.

If the 10 yr. note closes above 1.97%, the impact and outlook will be very negative for interest rates.  With higher rates/lower rebates on the horizon, consumers who have seen expected interest rates spike need to realize that the market is showing no signs of rates coming back down any time soon.

It is better to stop chasing rates and lock in now to take advantage of market volatility and cash in on any high points realized.

- Michael Corboy