Ilustrating the Chop...To Take or Not to Take the Money and Run

Top Chart is 4.5. Bottom Chart is 5.0. Fan Lines and Dashed Lines are key retrace resistance/support levels.

The range in which the MBS has recently begun trading sideways within is widening for the worse. The 4.5 and 5.0 have each broken a support line and begun the process of testing the lower levels. 

At this point the risk to short term (10 day) floating is very close to outweighing the reward. You can always renegotiate if rates get drastically better, you cant do anything if you lose these recent highs though. So again if you have a lender that has re-priced these 2 day gains aggressively,  "taking the money and running" is advised.

Don't panic yet though...just stay ready. Longer term...end of month/into January we're still feeling floaty.