The attached chart is a technical "fix" on how pundits are betting on spreads in the mortgage market.
I've long held that deleveraging and its deflationary forces will allow for lower prices with continued lower rates. This is not uncommon during such types of recessions.
As you can see in the chart however, a divergence in the technical underpinnings is causing a lot of anxiety about a jump in mortgage rates. Whether or not my scenario holds, it would now be viewed as a BEST CASE situation let alone any hope for optimism in RE prices!
The clue is in the smart money activity but there are plenty of fools who will allow emotion to override such clues.
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