MBS RECAP: 1/9/2012

By: Matthew Graham • Mon, Jan 9 2012, 4:15 PM

MBS Live: MBS RECAP

Open MBS Live Dashboard

FNMA 3.5
103-08 : +0-05

FNMA 4.0
105-12 : +0-06

FNMA 4.5
106-24 : +0-08

FNMA 5.0
108-04 : +0-06

GNMA 3.5
104-22 : +0-05

GNMA 4.0
107-12 : +0-02

GNMA 4.5
109-00 : -0-01

GNMA 5.0
110-29 : +0-04

FHLMC 3.5
103-02 : +0-05

FHLMC 4.0
105-06 : +0-06

FHLMC 4.5
106-06 : +0-07

FHLMC 5.0
107-19 : +0-05

Pricing as of 4:00 PM EST

Afternoon Market Updates

A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard.

3:27PM : ALERT: MBS Trying to Fight Off a Case of The Monday's After Hours

There's really not much going on to drive the price swings this afternoon apart from light liquidity and low volume. All across the board, markets are ticking with about half their normal volume and frequency. 10yr futures just now cracked 500k contracts on the day after seeing well over a million on Friday and even broke into 7 figures on Thursday as well.

A case could be made for technical selling in benchmarks (pulling MBS down with them), stock lever connection, pre-auction concession heading into the rest of the week, or some combination of the above. but all carry the caveat that the low volume looks to have exaggerated the moves and that no major technical levels have been crossed. Just an uneventful afternoon with a bit of selling pressure in bond markets that now looks to be stabilizing for now. Consumer Credit crushing consensus estimates turned out to be non-event for bond markets. Consumer Credit! You're on notice! Next time you offer a big beat/miss and markets don't respond, we won't be watching you next time!

3:17PM : ECON: Stronger Than Expected Consumer Credit

Consumer Credit in November up $20.37 Billion vs Revised $6.02 Bln in October
Biggest one month gain since 2001
Revolving Credit rose $5.60 billion vs revised gain of $685.9 mln in October
Non-Revolving up $14.78 billion vs revised gain of $5.34 billion in October

Featured Market Discussion

A recap of the featured comments from the Live Discussion on the MBS Live Dashboard.

Matthew Graham : "RTRS- U.S. NOV NON-REVOLVING CREDIT UP $14.78 BLN VS REVISED $5.34 BLN INCREASE IN OCT "

Matthew Graham : "RTRS- U.S. NOV REVOLVING CREDIT UP $5.60 BLN VS REVISED INCREASE OF $685.9 MLN IN OCT "

Matthew Graham : "RTRS - U.S. NOV CONSUMER CREDIT UP $20.37 BLN VS REVISED $6.02 BLN INCREASE IN OCT; BIGGEST 1-MONTH GAIN SINCE 2001 "

Gus Floropoulos : "REPRICE: 1:46 PM - PHH Better"

Jason Oelrich : "REPRICE: 1:33 PM - Met-Life Better"

Dan Clifton : "REPRICE: 1:27 PM - 360 Mortgage Better"

Daniel Kramer : "Below are the effective dates of the staggered plan: • January 11 – GFee increase will impact 45- and 60-day pricing. You must begin calling Priceline for Rate Lock Extensions rather than extending online for Conventional Conforming loans (extensions will not be available online for Conventional Conforming loans). • January 31 – GFee increase will impact 30-day pricing. • February 13 – GFee increase will impact 15-day pricing. Important Conventional loans locked prior to the dates above must fun"

Daniel Kramer : "Conforming and Non-conforming prices will change based on recent Congressional action. Specifically: • Freddie Mac and Fannie Mae are increasing their Guarantee Fee (GFee) effective with April “settlements,” which will worsen pricing. • In order for a loan to meet the April settlements, it must close by Feb. 29, 2012. • The GFee increase will worsen prices by up to 80 bps depending on note rate. • Wells Fargo Wholesale Lending is staggering the impacts of that increase by Rate Lock Period in an"

Eric Franson : "REPRICE: 12:58 PM - Wells Fargo Better"

Daniel Kramer : "REPRICE: 12:00 PM - Fifth Third Mortgage Better"

Kent Mikkola #353976 : "REPRICE: 11:59 AM - Franklin American Better"