Data released today (Wednesday) shows that "mortgage rates are suddenly soaring and are pulling down mortgage activity."
This kind of loan rate rise was something to which I alluded in my post of May 7th. Perhaps this is why we saw a rise in Mortgage Delinquencies on May 9th.
We'll see if rates stay elevated if "tapering in stimulus" is NOT mentioned as an imminent proposal in Ben Bernanke's speech/testimony today.
***UPDATE: No mention in Bernanke's speech about imminent tapering (it will be dependent upon economic data that the FOMC reviews at each meeting, according to him). So, the big question now becomes, "Will Banks lower mortgage rates?" Don't hold your breath. And, my last question is, "Will TV commentators stop talking and guesstimating about such a scenario anytime soon?" Don't hold your breath.
We'll see if the Homebuilders ETF (XHB) continues to soar or begins to pull back. A drop and hold below immediate support at the 61.8% Fibonacci retracement level of 31.81 and, subsequently 30.00, could trigger a decline to the lower Bollinger Band, or lower, as shown on the following Weekly chart...one to watch.
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