MBS MID-DAY: Bond Markets Find Support at Weaker Levels after Strong Home Sales Data

By: Matthew Graham • Mon, Apr 28 2014, 11:47 AM

MBS are coping with the double-edged sword that is stronger housing data this morning. On the one hand, the decisive reversal of an 8-month slide in Pending Home Sales is positive news for the housing market in general. On the other hand, it's putting upward pressure on rates so far today.

Fannie 4.0s moved from 104-18 to 104-12 following the data. While this is enough of a move for negative reprices to be a risk, we haven't seen any so far. That could have something to do with the fact that the losses were stemmed fairly quickly, and aren't quite as severe at the moment (up to 104-15 at the moment).

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 97-04 : -0-06	FNMA 3.5 101-06 : -0-05	FNMA 4.0 104-14 : -0-03
Treasuries	2 YR 0.4378 : +0.0038	10 YR 2.6986 : +0.0326	30 YR 3.4842 : +0.0442
Pricing as of 4/28/14 11:47AMEST

Morning Reprice Alerts and Updates

A recap of Alerts and Updates provided to MBS Live subscribers.

10:15AM : ALERT ISSUED: Bond Markets Weaker After Strong Pending Home Sales Data

9:20AM : Bond Markets Slightly Weaker; Some Volatility

Live Chat Featured Comments

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

Sung Kim : "let's hope we dont get the ADP/NFP ramp up "

Victor Burek : "last month, the best pricing was on the Monday of that week"

Victor Burek : "then each day got worse"

Victor Burek : "i plan to lock my floaters today"

Sung Kim : "i would tend to agree, this week is very very scary"

Matthew Graham : "RTRS- U.S. MARCH PENDING HOME SALES INDEX +3.4 PCT (CONSENSUS +1.0 PCT) TO 97.4 - NAR"

Matthew Graham : "RTRS - U.S. MARCH PENDING HOME SALES -7.9 PCT FROM MARCH 2013"

Hugh W. Page : "Markets are so different. My sister is selling her house in Highland Park area of Los Angeles, and had her first open house yesterday. Over 100 people came thru...holy moly"

Bryce Schetselaar : "People here in south Cal are herd-like..."prices are going up so move fast or be priced out!""

John McClellan : "Here is the Austin area we have less than 2 months inventory for the entire MLS average...like walking onto a car lot and there are 50 people looking and there are only two cars...."