Well, we had our 2nd day in a row of downward pressure on mortgage backed securities.  As MBS move lower in price, it causes mortgage rates to move higher increasing borrowing cost.   A few lenders did reprice for the worse but most lenders left rates unchanged from morning levels.   In total, borrowing costs increased by another .25 in discount today.

In positive news, MBS are up slightly over this point last week so we head into next week at higher levels than we did the prior week.  Hopefully, we pick up some steam and see some improvement early next week.

Economic data is quite thin in the coming week but Treasury issuances are rather large.  With the added supply of debt about to come to market, it can place pressure on Treasuries and MBS to move higher in yield.  Today, the biggest loser was Treasuries which moved from a yield of 2.85 at open to 2.95 currently probably in anticipation of the upcoming supply. 

If you want to see graphs of today’s action and intraday updates, click over to the MBS Commentary.

I will get back to everyone Monday with my week in review.  I hope everyone has a fantastic weekend and thanks to everyone for the comments this week.  Please keep them coming.