MBS RECAP: Morning Weakness Defeated but Resistance Remains

By: Matthew Graham •

MBS tell a bit of sunnier story than Treasuries today as Fannie 4.0s were able to break their 2014 highs by one whole tick (1/32nd).  10yr Treasuries better capture the theme, hitting 2.819 at their best levels EXACTLY matching the lows seen on Friday and last Monday.  Needless to say, it will be a good resistance level to watch before and after next week's FOMC Announcement.

To be more clear, the theme referenced above is one of "leveling-off at the best levels of 2014."   In current territory, bonds have done much to account for any small shift in tone from the Fed, but remain in weak enough territory so as to not be hung out to dry if the Fed stands pat on tapering.

Today was uneventful, though it might not have been if bonds kept losing ground in the morning.  As it stands, the losses were shed by mid-morning.  MBS made it a few ticks into positive territory and have dialed back a bit ahead of the close.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0
96-08 : +0-01
FNMA 3.5
100-19 : +0-00
FNMA 4.0
104-02 : +0-00
Treasuries
2 YR
0.3836 : +0.0046
10 YR
2.8286 : +0.0016
30 YR
3.7463 : -0.0107
Pricing as of 1/21/14 4:03PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:16PM  :  Edging Into Positive Reprice Territory for Some Lenders
9:24AM  :  Weaker Overnight, Bouncing Back Somewhat; Hilsenrath Article Analysis
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
William McGuirt  :  "so you cannot do cash out using VA in texas, correct? "
Jay Rodriguez  :  "You can do VA Cash Out, you just can't do a VA Texas 50 a 6 Home Equity Loan. In other words no proceeds can go to the borrower through closing."
Jay Rodriguez  :  "3yrs with late payments. No waiting period of no lates leading up to short sale and borrower was not trying to take advantage of the market."
Victor Burek  :  "3 years but no wait if no lates on any debt in prior 12 months"
Joe Probst  :  "Question. I have heard that FHA streamlines have changed back to net 50.00, from 5% on payment requirements. Is that correct?"
Matt Hodges  :  "if so, it would be a recent ML"
Bryce Schetselaar  :  "I haven't seen anything solid, Joe...no mortgagee letter that I have seen"
Andy Pada, Jr.  :  "Fannie Mae Capital Markets Desk closing early today"