Vic provided a pretty good outlook on mortgage rates heading into tomorrow's ADP report and Friday's NFP release. We are indeed at a crossroads....a strong employment situation report would essentially confirm a month's worth of weakness in the bond market, thus putting a firm layer of resistance under the rates market, making mortgage rates under 5.00% a thing of the past. 

I wrote a whole bunch more content after that statement but decided to take it out...will publish in MBS AFTERNOON

Stocks have rebounded from their intraday lows and are in the green. (The S&P is, the Dow and NASDAQ are not...but I think the S&P is more indicative of the market's sentiment).

The 3.375 coupon bearing 10yr TSY note is trading at yield lows/price highs, currently +0-18 at 96-29 yielding 3.753.

The "rate sheet influential" FN 4.5 MBS coupon is +0-14 at 100-17 yielding 4.452%...also at the highs of the day. We've seen a few reprices for the better but nothing widespread.

No...I am not willing to call this a facemelter.