Rate Sheet Influential MBS Prices Decline. Does It Matter At This Point?

"Rate sheet influential" MBS prices are moving lower today. I hope this doesn't add to your anxiety level.

If you've been riding the float boat, now is not the time to be bailing water. Remain calm, nothing has changed. QEII is coming and I expect it to lead mortgage rates lower.  I updated my thoughts on the topic last Friday and feel this post should be read if you're having last minute second thoughts about floating. Of course this is just my opinion, so take it for what's it's worth to you....but when was the last time you remember me being this Adamant about a market event? (haha Adam-ant, that's what people called me when I was a kid)

Mortgage Rates in QE Countdown. Trick or Treat?

The December delivery FNCL 3.5 is -0-07 at 100-17. The December FNCL 4.0 is -0-07 at 100-07.  I've got the current coupon marked at 3.482%. My model is more heavily weighted toward 4.0s at the moment because that's where production has been focused lately.  Liquidity is missing  ahead of mid-terms tomorrow and the FOMC announcement on Wednesday.  This makes for choppy price action, which is clearly the case today. Both of these events will influence the bond market with the latter having an immediate impact while the prior will will be more psychological than anything.  

ARE YOU READY TO TEAR THE ROOF OFF? WE NEED THE QEII. GOTTA HAVE THAT QEII....TURN THIS MOTHA OUT

My Halloween Costume: I rocked a Sidney Crosby t-shirt jersey, a long blond wig, and a fannie pack stuffed with maxi-pads and tampons. Yeh. It was awesome. If you weren't aware of my feelings (jealous of the Cup) toward the Pittsburgh Penguins' leader, now you are. I still have much respect for him as the 2nd best player in the world though, I just can't get passed the fact that he tends to whine a bit more than most grown men.  He still has a Cup though, Alex has no Cup yet. Go Caps!