MBS MORNING: Happy Holidays. Rates Unchanged

Good Morning.The market is flat.

The 3.375 coupon bearing 10yr TSY note is -0-02 at 96-26 yielding 3.762%. The FN 4.0 is -0-02 at 96-28 yielding 4.297% and the FN 4.5 is -0-01 at 100 the buck yielding 4.509%. The secondary market current coupon is 4.505%

Copy and Paste is a great tool. I copied and pasted this from Monday's MBS OPEN:

From a loan pricing standpoint. I recall this time of year as being one of my favorite for determining rate sheet rebate. I viewed it as so...

Most borrowers have already locked in  and many have actually already closed. Who wants to deal with a loan closing at this time of year?  My main goal was to limit the amount of work I had to do over the next 10 days. I made sure all my positions were square, I double checked pricing, hounded post closing to get my files shipped, and started working on monthly P&Ls. My eyes were generally off the market as my mindset was " GET WORK DONE, LEAVE THE OFFICE ASAP". Processors, UWs, Closers, Shippers, and Accounting were all in the same boat. (Compliance always cared)

This was not an originator friendly environment. To avoid extra work and disruption...I always baked a few extra bps into my rates. My innate sense of capitalism took over. This sentiment was shared up and down the mortgage pricing supply chain. Not matter how the market was moving....primary/secondary market pricing spreads were getting wider.

Plain and Simple: Don't be surprised or angry if rate sheets start to get more expensive...regardless of how the market behaves.