MBS Pricing Snapshot

Granted, most lender's rates were out at a time this morning when prices were just now edging up to current levels. Since then, they moved about 5 ticks higher and have since moved about 5 ticks lower in the last 2 hours. The most recent dip looks to be met with decent enough support at 103-29, but liquidity does appear to be a concern.

These things happen on Friday afternoons, sometimes leaving buyers but often times sellers (as the Fed usually buys earlier in the day). That's not a prediction about how the balance of the day will trade, merely a justification for the modicum of weakness here. It's not yet looking like a negative reprice situation, but depending on lock volume and "jumpiness," there are other reasons a lender might reprice for the worse.

In assessing the possibility of those "pipeline control" reprices, all you can really do is 'know your lender' and whether or not they have a history of such things. Otherwise, we'd probably keep an eye on 103-29 here as that seems to be where the bid-side will try to draw its line in the sand. if we break lower, the better technical level is actually 103-28, as it represents sort of the middle ground between the morning highs and afternoon lows. If we find ourselves under 103-28, negative reprices would be more of a concern, otherwise, we're just trying to stay on cruise control for the next 2 hours.