MBS Live Morning: Another Omicron Rally; New Loan Limits TODAY

Today's reaction function for the market is very simple and very obvious.  Shortly after midnight, Moderna's CEO made some discouraging comments about the likely efficacy of current vaccines against the omicron variant, as well as the lead time for new vaccines to be developed.  Stocks and bond yields dropped sharply and immediately. 

In separate news, today is the day for new conforming loan limits.  The underlying price index used in the calculation is already out. See it here: https://www.fhfa.gov/DataTools/Downloads/Documents/HPI/HPI_EXP_us_and_census.txt.

Then apply this methodology: https://www.fhfa.gov/DataTools/Downloads/Documents/Conforming-Loan-Limits/CLLAddendum_CY2021.pdf

The result is

 (328.13-277.97)/277.97 = 0.18053607

$548,250 x 1.18053607 = $647,228.

Rounding to nearest 50 = $647,250.

The official results should be out soon!