MBS RECAP: Bond Markets Improve on Weak Data, Friendly Fed
By:
Matthew Graham
•
MBS Live: MBS Afternoon Market Summary
Fed speakers will be an ongoing theme this week as market participants refine their outlook for potential December policy changes. While we heard from several Fed members today, it was really only Dudley whose comments noticeably correlated with market movement. The opening salvo of Dudley newswires contained a slightly more optimistic stance than he usually conveys. This counteracted some of the gains that followed the weaker-than-expected NAHB Housing Market Index.
Dudley later qualified his apparent optimism, saying he anticipated that monetary policy would be accommodative for a considerable period of time due to low inflation and high unemployment. This restored the bid for bond markets--which had only wavered slightly at first. MBS and Treasuries are now coasting toward 5pm at the best levels of the day--albeit in fairly low volume.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
|
|
|
||||||||||||
| Pricing as of 4:04 PM EST | ||||||||||||||
Afternoon Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this afternoon.
3:59PM :
Bond Markets At Best Levels; Some Positive Reprice Potential
We've seen scattered positive reprices so far today and the possibility remains as the day winds down. Fannie 3.5s are up 14 ticks at 101-29 and 10yr yields are down to 2.664. Volume has been light all day and the movement doesn't owe itself to any significant event or headline. As for positive reprices, we'd emphasize potential over likelihood, due primarily to the lateness in the session. We may see a few, but they're by no means guaranteed.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.
Matthew Graham : "http://www.mortgagenewsdaily.com/data/30-year-mortgage-rates.aspx"
Jeff Fullmer : "Does anyone know where I can get a good graph showing average mortgage rates for the past 5 to 10 years? I'm working on a presentation and I need o find one. Thanks in advance."
lhefner : "REPRICE: 1:07 PM - Quicken Loans Wholesale Better"
Ross Miller : "I got the same call"
Bryce Schetselaar : "They tried to do the same thing with me. Said that volume currently was 10% of last year at this time. With the drop in volume, their competitive advantage in pricing goes out the window due to fixed costs...economies of scale"
Edgar : "And they closed our account with 24 hours of going below a certain level (even though we were Tier 1 for years). If they waited 2-3 more days then several loans that closed would have brought us back to where we needed to be."
Bryce Schetselaar : "Yeah, they are REALLY hurting"
Edgar : "Anyone else get hit up by Provident recently about re-opening a broker relationship with them? We have not used them in 2-3 years, and they contacted us a few weeks back about doing business again. Their sales pitch? How we cost them SO much money because of 2 locked loans falling out but if we basically beg them to let us back in they'll consider re-opening the account. Isn't that nice of them? They must really be hurting if they need to go back 3 years and hit hip a small broker for biz. "
Matthew Graham : "Dudley is highly regarded as well. It would be different if it were Plosser (which it will be at 1:30). Even then, they say far more that's ignored than traded. Given what's at stake surrounding QE, such snippets become something other than 'random opining' sometimes. "
Drexel Hill Mortgage, Inc. : "right BB...the crystal ball for late 2014 and 2015...anything could still happen one way or another...but just that kind of speak all of sudden prompts DEC taper...not likely"
Brent Borcherding : "I think it speaks to the general uncertainty and unknown of the market that one individual "opining" can do so, at date. "
Michael Gillani : "It's amazing how random opining by different Fed members can sway the market as a whole on any given day."
Ted Rood : "If it shows not eligible on those two sites (and you're entering address as shown on mortgage statement), prob not harp eligible, Lynn."
Lynn ONeal : "any ideas to determine if a current wells fargo is harp eligible other than fannie and freddies site (or telling them to call wells)?"
Read what our user's have to say about MBS Live on LinkedIn.
» Start a two week free trial of MBS Live.