MBS AFTERNOON: Seasonal Slowness in Both Sides of Mortgage Market
In the secondary mortgage market, volume was on par with the already low 30 day average. Trading flows, although balanced, once again reflected late summer seasonal influences (yawn). Again we remind..this final week of August is one which many a trading desk is operating "a man down"...staffed with understudies whose only order is to avoid being momentum's speed bump.
Much of the same is occurring in the primary mortgage market as originators look to squeeze in that last minute vacation before school starts up. (School started here already btw). Reports from lock desks indicate more time has been spent nagging apathetic shippers and confirming commissions rather than locking loans, creating commitment confirmations, reconciling fundings, and updating the pipeline.
Plain and Simple: its the end of the month. New TIL amendments have made last minute rushes impossible...back shops are more busy tidying up than anything (ugh commissions are no fun). ITS SLOW EVERYWHERE!
Although there have been a few moments where the cheeks clenched up a bit, the range has managed to keep choppy price action in check today...
We saw only one mainstream lender reprice for the better today....GUESS WHO?
HA..yeh the price leader.