The coupon represents a bucket of loans with a rate range of about 1%. This bucket is what the bond traders are buying and selling, so the change in the bucket won't really affect you much. The real part you are looking for is the trending. Pay close attention to Dan Rawitch's daily commentary as he discusses what factors contribute to the movement of the bonds. The bond trading used to be more important when you could use the rebate to to either get a better rate or make a bit more money on the loan. Since compensation reform, it really isn't that important for you, but it still important to understand where rates are going so you can ensure your borrowers lock with the best possible rates. Generally, when you see the bond charts up, it is good for rates and they will go down. When the bond chart shows a loss, prepare for rate increases. When watching the RW, the goal is to find out how long it takes your particular lenders to reprice for the better or worse as a result of bond changes. If you would like a bit more education on the subject, here are some great resources:
Video on candlestick charts in RateWatch:
As a first step, watch this quick 10 minute video on how to use candlestick charts in the RateWatch dashboard:
Additional Resources To Further Your Education (provided with courtesy of stockcharts.com)
Introduction to Candlestick Charts with good details on basic candlestick formations.
Understanding Trend Lines - Trend Lines are an important tool in technical analysis for both trend identification and confirmation.
Master the chart patterns and you are ready to make well educated short-term or long-term forecasts.
For a full review on candlestick, charts, patterns and forecasting, please see the following page:
Thanks again and please feel free to contact our support team if you have any questions at all.