Although the 74.2 reading on Consumer Sentiment was slightly higher than consensus estimates of 73.2, the fact that it did not beat the 74.5 December reading seems to be the driving force behind a down trade in stocks and recovery bounce in bond prices.
10yr notes just crossed over yesterday's closing yield levels around 3.39 after trading as high as 3.45 this morning. FNCL 4.5 MBS are at 102-03 and rising. If current levels are maintained, we stand a good chance to see reprices for the better from lenders who were already out with pricing before the data.
Remember: the best way to stay on top of the minute to minute changes in the MBS prices that dictate loan pricing is at the MBSonMND Live Dashboard (LEARN MORE HERE). Have a question about something you're seeing on the dashboard? Just ask! AQ and I respond to originator questions all day whether it's simple clarification on market events or curiosity as to when I'll next don the Rally Sweater. Not only that, but you have access to colleagues from around the country discussing lender reprices the moment they happen, as well as guidelines, deal structuring, and other industry-related questions.
If you're locking today, hold out at least until this rally gets a chance to grow some legs. Reprices are possible at the moment....
ps. Do not attempt to rationalize this range bound market. The rock moving will only led to range exhaustion induced madness.