After reaching intraday highs, production MBS coupon prices fell 8 ticks (well 20 min ago to be honest...sorry for the tardiness!!!)...be aware that some lenders will use this as a reason to reprice for the worse. Again, as indicated in MBS OPEN this will be a normal occurrence when MBS prices are trading at the top of their price range because mortgage bankers will look to take profits (lock their loans) at the highest prices they can...very similiar to your locking strategy (lock when you think YSP is topped out).

In every instance in the "post-Federal Reserve deciding to spend 1.25 trillion on MBS" era....cheaper dollar prices have drawn buyers back into the market and MBS prices have recovered.

Vic wrote a great post about Mortgage Rates and their relation to closing costs...plus he commented on econ data. I for one see continuing jobless claims (and declining average hourly work week) as a sign that next month's Non-Farm Payrolls Report will continue to indicate economic contraction has not run its course on global markets.

An upward trend channel was in the works....lets see if we can get back in the groove