Continuing to slide early

Heads up!  We've peeled off another 3-4 ticks in the last 10 minutes.  Lenders likely hedged early rate sheets, but nonetheless we may see price changes for the worse.

This puts us in a precarious position because if we fall enough in the morning, lenders are likely to price very conservatively.  This makes locking in that overly-hedged rate a nauseating proposition when we can assume there will be an extent of "rebound" even if other market factors simply hold steady.

So consider your Friday afternoon rates versus this morning.  If you have lost more than .5 YSP at PAR, I would float.

Treasuries and MBS are tracking well this morning, so if you see bond yields shoot up, consider that a lock alert, unless otherwise advised when you check back here.