June 4th sale of mortgage backed securities pushed mortgage rates higher. A highly eventful week witnessed MBS coupon price move 200 basis points low early last week and conversely raising the thirty year fixed rate from 4.87 percent to 5.37 percent by weekend. The thirty year fixed rates were at a 4.62 percent before May 27th Black Wednesday.
To the market, this could very well mean the onset of recovery. Stock market is witnessing a positive change in the mood of investors who were investing in low risk assets like treasury debt are now attempting to invest in assets that yield higher returns.
