MBS Live: MBS Afternoon Market Summary
Several lenders were out with improved rate sheets this afternoon, as reported in real time by MBS Live members. The underlying strength making such things possible wasn't attributable to any one factor.  Low volume greased the skids for easier movement (it takes fewer dollars at work to move low-volume markets) and comments from Fed speakers made for a generally constructive (good for MBS/Treasuries) tone. Prices climbed into the noon hour and leveled off before continuing a moderate push into better territory after the 3pm Treasury close (Treasuries continue trading from 3-5pm, but many market participants treat 3pm as the end of Treasury-related business for the day).

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
96-25 : +0-13
FNMA 3.5
101-01 : +0-13
FNMA 4.0
104-07 : +0-10
FNMA 4.5
106-14 : +0-08
GNMA 3.0
97-19 : +0-13
GNMA 3.5
102-01 : +0-11
GNMA 4.0
105-02 : +0-10
GNMA 4.5
107-03 : +0-05
FHLMC 3.0
96-12 : +0-12
FHLMC 3.5
100-24 : +0-13
FHLMC 4.0
103-30 : +0-09
FHLMC 4.5
106-01 : +0-07
Pricing as of 4:08 PM EST
Afternoon Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this afternoon.
3:36PM  :  MBS Hit New Highs as Day Winds Down
Volume remains light today for both Treasuries and MBS. This has made for easier movement after 2pm, and it happens to be in our favor. Fannie 4.0s and 3.5s are both at new highs for the day and 10yr yields are testing their lows presently. A positive reprice from a lender or two isn't out of the question, but far from guaranteed. Fannie 3.5s are up 12 ticks in total at 100-31, but only up 3 ticks from most rate sheets.
2:24PM  :  Slight Pressure in Afternoon Hours; Reprice Risk is Contained
MBS are just slightly off the highs seen heading into the noon hour though Fannie 4.0s are still up 6 ticks on the day at 104-04. Current prices are still in line with, or higher than those that prevailed when the last round of rate sheets came out. That makes negative reprices unlikely for now, but positive progress is no more likely.

Keep in mind that some lenders have historically repriced regardless of MBS Price movements, especially on days with high lock volumes. These "pipeline control" reprices can't be foreseen based on price movements.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.
Matthew Reid  :  "kroll is back up jeff"
Jeff Anderson  :  "Anyone have any updates from Kroll? What's been the turnaround times since the floods started out there? "
Dan Crowley  :  "REPRICE: 2:38 PM - Caliber Funding Better"
Matthew Graham  :  "I know, but are lenders putting out reprices that only affect 4.25% and lower? or just .125, etc.. across the board?"
Matthew Graham  :  "RTRS- FISHER: IT WAS A 'VERY CLOSE AND TOUGH DECISION' NOT TO TAPER FED'S BOND-BUYING PROGRAM LAST WEEK "
Matt Hodges  :  "i understand the logic, but most borrowers aren't buying down to it"
Matthew Graham  :  "RTRS- FISHER: I WOULD LIKE TO TAKE A LITTLE BOOZE OUT OF THE PUNCHBOWL, STOP ADDING TO THE FED'S BALANCE SHEET "
Matthew Graham  :  "right, but if the front-running lenders have lockable rates out at 4.25%, they're going to have to change those rate sheets if 3.5s tank, even if 4.0s aren't tanking as badly. "
Matt Hodges  :  "i'd like to see 101 held before you shift coupons, personally"
Matthew Graham  :  "3.5 is valid as well. I'll probably change it if we hold ground tomorrow. 3.5 is definitely affecting sheets"
Jason Anker  :  "4"
Justin Bayle  :  "i've been checked out for a couple days...are we still watching 4.0 or moved to 3.5?"
Matthew Graham  :  "RTRS- FED'S FISHER: THE WHITE HOUSE HAS MISHANDLED 'TERRIBLY' THE PROCESS FOR PICKING NEXT FED CHAIR "
Matthew Graham  :  "RTRS- US SENATE MAJORITY LEADER REID SAYS HOUSE WILL HAVE THE CHOICE OF EITHER PASSING FUNDING BILL WITH NO ADD-ONS OR SHUTTING DOWN GOVERNMENT "
Nate Miller  :  "REPRICE: 1:36 PM - Green Tree Better"
John Rodgers  :  "it was working earlier"
Matt Hodges  :  "i ran two AUS on Kroll pulls this morning"
John Rodgers  :  "website is down and I can't run credit"
Matt Hodges  :  "JR - would AUS be able to access existing CRs from Kroll if they were?"
John Rodgers  :  "Is Kroll down?"
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