Annnnnnd we're back to the highs of the day. The FN 4.5 is currently +0-07 at 100-13. From the 20 some odd mainstream rate sheets we've seen...mortgage rates are sliiightly lower (rebates a little more robust).
Just an FYI...we really hate sending ALERTS in the current market environment. The term ALERT implies PANIC...we're not panicking, neither should you. Current trading flows do not reflect a fundamental bias. We will begin to place more weight on trends when the market goes back to work at the end of this week/after Labor Day. Until then its more highs and lows in short time frames...
Check out the ups and downs this morning. CHOPPITY CHOP CHOP...
The price fluctuations of rate sheet influential MBS coupons have been a factor of overall weakness in stocks (oil) and the indecisiveness/day trading techniques of TSY market participants. It's still a trader's world...and we're still day trading the curve.
Notice the relationship between Oil prices and stocks?Oil leading the way for stocks...
While we remain cool, calm, and collected....there is still an angel on our shoulders reminding us not to be overconfident. We cannot ignore the wide range that rates are trading within...that said if you are floating in the short term, we think floating remains the right idea, but would advise that you stay ALERT.
Although many lenders have already accounted for the anticipated choppiness of the marketplace, some antsy/trigger happy/aggressive lenders may find reason to reprices for the worse if prices plummet (those same lenders might reprice for the better if these gains hold).
You'll be happy to hear that the parenthetical seems more relevant as today is the last day of the month. The previously discussed supportive events start this afternoon when MBS and TSYs receive month end index extension buyer interest. Our outlook is that "rate sheet influential" MBS prices hold their two day upward trend channel.
Plain and Simple: We will ALERT in the event we see it fit to flee fixed income, but supportive events should serve to stabilize price action.
Anyone on vacation this week?
PS...After dealing with a flat tire on his Mrs. car this morning, he got one on the way to the office. Brutal morning for MG...
MBS Market Alerts
