Reprices for the worse were reported today but rebate losses were limited. On average loan pricing worsened by 17.6bps. If you're looking at C30 pricing and hoping to offer some lucky borrower 4.75%, your quote took the largest lump today. 4.75% is almost on the board for originators who don't mind writing a skinny deal but it's generally not worth the floatdown unless the borrower intends to keep their home loan outstanding for at least the next 10 years. Although the bond market rally failed to extend today and rebate was reduced, loan pricing is still about as aggressive as it's been since late January.

GUIDANCE: The failure of the bond market to extend its recent rally really serves to drive home a point we've been harping on for several weeks now: WE'RE STUCK. If you're floating, you're doing so for marginal improvements in UPFRONT COSTS ....not RATE. When it comes to the outlook for lower rates in the months ahead, we're still optimistic about that expectation but realize it will require a steady drip of bond friendly (economy-unfriendly) news and events . In the short-term, or at least until "the levy breaks" and all hell breaks loose around the planet, we don't expect lender rate quotes to look much better than they do right now. Plain and Simple: We're going to need a sustained bond market rally to see "Best Execution" break through the 4.875% barrier. Otherwise this is as good as it gets. See attached chart.

10yr notes hit the 3pm marking period just under 3.40 and have held that level despite a relatively healthy stock market rally. MBS are keeping pace with benchmarks once again with FNCL 4.5's at 101-29. Volume is low.

Despite a stock market that is presently ticking higher past previous highs, the bond market is actually off its worst levels of the day. 10yr notes fell back under 3.40 and is currently testing that support versus an ongoing stock rally. MBS have kept pace this time around with FNCL 4.5's at 101-30 which is only 6 ticks down on the day.

10yr notes moderated a bit after putting in a resistance bounce around 3.415. FNCL 4.5's hadn't moderated at quite the same pace as they were as low as 101-25 moments ago and just ticked up to 101-29. This illustrates a lack of liquidity in MBS today. The stock lever has been connected today and 10yr yields original move over 3.40 coincided with a stock market jump out of an earlier triangle. Additionally, as that brief stock rally stalled, bonds were then able to put in their high yields. So we can watch the lever for the rest of the day in the absence of data as it may prelude MBS movement.

We have a very slow, orderly, and low volatility sell-off on our hands today. MBS have moved lower in a trend channel less than 2 ticks wide and treasuries have weakened in a similarly narrow channel. The former now stands at 101-27 and the latter at 3.408. No major bearish signals are being triggered. However, the lack of green on screens today does constitute the absence of bullish signals being confirmed.

Today, the Government National Mortgage Association (Ginnie Mae) announced that it has guaranteed more than $26.2 billion in mortgage-backed securities (MBS) in February. “The Ginnie Mae MBS continues to support homeownership and affordable rental properties for families in this tough economy,” said Ginnie Mae President Ted Tozer. “As a leader within the housing finance industry, Ginnie Mae continues to provide critical liquidity to the secondary market.” Issuance for Ginnie Mae II single-family pools totaled over $16.44 billion in February. Issuance for the Ginnie Mae I single-family pools topped $7.62 billion and issuance for the HECM Mortgage-Backed Security (HMBS) was more than $891 million in February. Total single-family issuance for February was more than $24.96 billion. Ginnie Mae’s multifamily MBS issuance was over $1.25 billion.

(Reuters) - U.S. job openings slipped in January, as did the job openings rate, government data showed on Friday. Job openings, a measure of labor demand, fell 161,000 to a seasonally adjusted 2.76 million for the month. December job openings were downwardly revised to 2.92 million. The job openings number in January was 361,000 openings higher than the level a year earlier, but it was still well below the 4.4 million openings at the start of the recession in December 2007. In January, the job openings rate -- a gauge of how many jobs were still open at the end of the month -- fell to 2.1 percent from 2.2 percent in December. The rate of new hires also slipped in January, to 2.8 percent from an upwardly revised 3.0 percent in December. The construction hires rate showed the biggest decline, from 6.5 percent in December to 4.5 percent in January. The separations rate -- or job turnover, including voluntary and involuntary separations -- fell slightly to 2.7 percent in January from 2.9 percent. The report showed 3.71 million people hired in January, down from 3.91 million in December and well below the 5 million monthly hires at the start of the recession. The rate of people who quit their jobs in January, which often is seen as a measure of workers' willingness or ability to change jobs, fell to 1.4 percent for private employees but was little changed for nonfarm workers, at 1.3 percent, and government employees, at 0.5 percent. Although still low, the number of quits was higher than in January 2010 for nonfarm and private employees. The layoffs and discharges rate was essentially unchanged in January for total nonfarm and total private payrolls, but the number of layoffs by nonfarm employers reached a series low of 1.5 million during the month. (Reporting by Emily Stephenson; Editing by Andrea Ricci)

FNCL 4.5's are slightly weaker, now down 8 ticks at 101-28+. Reprices for the worse become more likely as MBS fall. Benchmark 10's are at their weakest levels of the day at 3.406, which is about 4.5bps higher on the day. 10's saw a patch of high yields in this current range after yesterday's auction and we can hope to see that zone hold as support here, but if it doesn't, ongoing pressure is possible for MBS.

MetLife rolled out more details of its compensation plan. "You will find details on Lender-paid and Consumer-paid Loan Originator Compensation as implemented by MetLife Home Loans" in the bulletin. Note that there are some differences from other plans (possibly that broker employee originators must be paid a salary or hour, or that the broker's company can reduce its compensation in order to offset tolerance violations). For Consumer Paid Compensation, "Consumer-paid broker compensation is determined by agreement between the Broker and the Borrower. MLHL will accept loans with Consumer-paid broker compensation up to a maximum of 2.5% of the loan amount. The amount of broker compensation charged to the Borrower may vary from one loan transaction to another. The Borrower may only compensate one loan originator, either the Broker or the Broker's loan originator employee, but not both. Since the Broker receives no compensation from MLHL, the Broker has the option to reduce its compensation to pay some or all of the third-party fees or other Borrower loan expenses, offset consumer disclosure tolerance violations, or offer other pricing concessions. The Borrower must pay the broker compensation from Borrower's own funds or the loan proceeds. The Borrower may use its own funds or loan proceeds to fund third-party fees. The Borrower may also use interest rate credits to fund third-party fees, but not broker compensation. The Borrower may pay bonafide discount points to MLHL to obtain a lower interest rate."