MBS ALERT: Six Ticks Lower at Bad Time
The FN 4.5 has fallen 6 ticks from a bid of 100-13 to 100-07. Currently the rate sheet influential FN 4.5 is +0-01 on the day after being as high as +0-07 (7 ticks or 7/32nds)...
As many lenders are currently publishing rate sheets...this is bad timing. That said we wouldnt be surprised to see a slight delay in rate sheets as lenders wait for a range to develop. If you already received pricing this morning, it may be recalled. Again choppiness is expected to continue this week, lenders are aware of secondary market conditions and will likely keep a cushion in pricing to avoid rapidly changing price levels.
Dont panic...this ALERT is more of an FYI than a LOCK ALERT. We went through this last week. Lenders should keep rate sheets quite similar to last week's levels.