MBS RECAP: Calm, Strong Day; Scattered Positive Reprices

By: Matthew Graham •

Today ended up being one of the the calmest in recent memory in terms of price volatility in MBS.  From 9:30am on, the biggest gap between the day's highs and lows never exceeded 2/32nds.  Prices rose all day, leveling-off parabolically with Fannie 4.0s approaching 104-18. 

Treasury yields exhibited the same sort of trend, with yields grinding down around 2.70.  On a positive note, that's the best 8am to 3pm move since the 13th, but on a sober note, it keeps yields in the same consolidative range we examined in this morning's 'day ahead.'

Most of the gains were intact before this morning's Consumer Confidence data, but the data probably helped those extend.  Whatever the case, a 5 point drop in consumer expectations for the coming months didn't make a case for the party to come to an abrupt halt.   Volume and drama was in short supply.

Several lenders released positive reprices into the afternoon, but because the gains were early enough in the day, most lenders got a chance to price them in to the first rate sheets of the day.

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
96-30 : +0-13
FNMA 3.5
101-05 : +0-12
FNMA 4.0
104-17 : +0-10
Treasuries
2 YR
0.3140 : -0.0120
10 YR
2.7032 : -0.0468
30 YR
3.6586 : -0.0534
Pricing as of 2/25/14 4:18PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:13AM  :  Bond Markets Rally Through Consumer Confidence Data
9:23AM  :  Home Price Gains Decelerate in December, but Still Beat Forecast
9:02AM  :  Bond Markets Flat Overnight, Stronger into Domestic Session
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Sung Kim  :  "if you are adding back stuff off a k1, you will have to use the 1120s and balance sheet. notes due and payable less than one year"
Gaius Rossini  :  "hey what's the max LTV for a fannie loan? can you do 100 LTV? (with PMI of course)"
Ira Selwin  :  "Their matrix is here - http://mndne.ws/Oz02he"
Andy Pada, Jr.  :  "are No Closing Cost refinances prevalent in NY?"
Andy Pada, Jr.  :  "are lenders crediting the mortgage tax"
Brian Chernega  :  "I think costs overall in NY are too high to do a no cost loan, possibly FHA but not Conv"
Brian Chernega  :  "locally there is also an attorney fee between 750-1000"
Brian Chernega  :  "hard to absorb that, title, mtg tax and bank fee."
Jim Whitehead  :  "Agreed, hard to cover all, but can absorb a lot of the costs given the rebates at higher rates. NYC mortgage tax is hard to cover; other counties are much lower mortgage tax. "
Stewart Anderson  :  "Does anyone have a good SE income worksheet that they'd be willing to share? Having trouble calculating a borrowers Partnership(1065) income. Help appreciated! "
Sung Kim  :  "stewart, i have MGICs worksheet that auto calcs"
Sung Kim  :  "OR http://mndne.ws/1egxNNF"