ending the day strong

Looks like we are going to push to the highs of the day as MBS trading closes.

The 5.5 coupon is up 20/32nds!  That's it's highest level of the day and has been a technical "ceiling" that has enticed bond holders to sell earlier in the day.

Volume reports indicate buyers outnumber sellers 4 to 1!  

Until now, sellers stepped in fairly aggressively when the price got this high, so it's fantastic news for mortgage rates.

 I have yet to see a lender that has priced in anywhere near this level of improvement in today's rate sheets even with reprices, so feel free to float until this improvement gets baked into the cake.  This will likely be tomorrow and we'll have to hope that none of tomorrow's data is damaging to MBS or these improvements could get washed out.

Whatever the case, the benefits of floating into tomorrow certainly outweigh the risks.