MBS RECAP: Mortgages Underperform Amid Holiday Trading Conditions
By:
Matthew Graham
•
MBS Live: MBS Afternoon Market Summary
Today serves as a good example of Treasuries and MBS moving in opposite directions. It's not that they weren't almost always moving in the same direction at the same time--simply that Treasuries' moments of improvement were a bit better than MBS, and moments of weakness were far less pronounced. This left 10yr Treasuries 6/32nds higher in price by the end of the day (-0.02% in terms of yield) whereas MBS were 2/32nds lower in price. Treasuries suffered and benefited by virtue of their relationship to the corporate bond market. This was a mild net-positive on the day. MBS suffered due to thinner staffing levels on this holiday week. This can work in either direction, as we saw on Friday afternoon. Today it happened to be in the "down" direction for prices. Zooming out to a 2-day view, nothing much is happening. Fannie 3.5s are right in line with Friday afternoon's range.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
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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.
2:46PM :
ALERT ISSUED:
MBS Back to AM Levels; Some Negative Reprice Risk
One lender just repriced worse, and although it's not uncommon to see that lender reprice when no others are, it is a moderate risk with Fannie 3.5s having fallen another 2 ticks in the past 5 minutes--now down 4 on the day at 101-03.
The weakness is MBS-specific as Treasuries continue to hold a narrow, sideways range. 10s are still 1.3bps lower on the day at 2.7409.
The weakness is MBS-specific as Treasuries continue to hold a narrow, sideways range. 10s are still 1.3bps lower on the day at 2.7409.
1:36PM :
Back to Unchanged Levels; Limited Selling Momentum
MBS Prices faded from their highs from earlier this morning, but are currently stabilizing right around 'unchanged.' 10yr yields have been flat since 11am, trading between 2.736 and 2.741. The 2yr Treasury auction at 1pm was a non-event--coming in very much in line with expectations and not causing any movement in longer maturities or MBS.
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.
Dave Pressel : "we use a consultant (I think she charges like $85 / hr) -- she is dynamite. Is located here in NJ. Email me if you want her contact info"
Ira Selwin : "Depends on the assistance you need - Ellie Mae won't help you create docs and stuff like that"
Andrew Russell : "Anyone have a contact at Ellie Mae that can assist with custom docs, etc?"
Kyle Miller : "Had one filed 10/23 and no transcripts yet."
FPH : "anyone have a borrower file taxes in October come back verified via 4506 yet?"
Ken Crute : "seeing some agressive portfolio rates out there, nothing would surprise me. Nor would it surprise me to learn that a LO was not familar with the restrictions surround a Non Warr deal "
Matt Hodges : "client claims that Quicken has known about the nonwarrantability for a while"
Matt Hodges : "Can anyone confirm Quicken will do non-warrantables at decent C30 rates? client quoted an okay rate, using Quicken on a condo with 33% commercial space"
Jeff Anderson : "REPRICE: 11:56 AM - Chase Better"
Matt Sullivan : "REPRICE: 11:17 AM - Fifth Third Mortgage Better"
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