MBS ALERT: Better Than Expected Housing Data Pushes Rates Higher

New Home Sales data was just released...better than expected findings were reported.

In October...

Single-Family Home Sales rose 6.2% to an annual rate of 430,000 sales. Much better than the market's expectation for 410,000 annual sales and 25,000 units higher than the 405,000 pace reported in September

At the current annual pace of sales, New Home Supply will last for 6.7 months....the lowest amount of supply since December 2006.

The better than expected read on the health of housing has pushed 10yr yields up 2bps to 3.33%...and pulled "rate sheet influential" MBS prices lower.

Beware of chopatility. Pricing may be delayed and some lenders may even reprice for the worse....