MBS Live: MBS RECAP
| Open MBS Live Dashboard | ||||||||||||||
|
|
|
||||||||||||
| Pricing as of 4:00 PM EST | ||||||||||||||
Afternoon Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard.
11:51AM :
ALERT:
Positive Reprice Potential Increasing as MBS Hold Gains
MBS are currently responding favorably to a supportive event in benchmark 10's. The fact that 10yr yields (so far) appear to be holding the line just under 2.10 this morning is a positive sign in terms of overall volatility. Fannie 3.5's had been trading a narrowing range until 10yr yields broke positively out of their own narrowing range. After that, MBS did the same and continue trading over the 101-26 technical (also the scene of the breakout). The longer this phenomenon plays out, the more likely it becomes that we'd see the characteristically early-to-act lenders repricing for the better, even if only by small token amounts. More time and better gains would be needed before positive reprices would be seen by a majority of lenders.
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBS Live Dashboard.
John Rodgers : "REPRICE: 3:28 PM - Chase Better"
Matthew Graham : "great question. Couldn't say for sure. Although, I think we probably just learned from MBS Twist to expect less than we think we should in terms of MBS outperformance"
Matthew Graham : "MBS weakened and came back, and here we are"
Matt Hodges : "So, MG - how does QEIII in actuality vs. anticipation differ from QE and QEII with MBS buys"
Matthew Graham : "and one more fundamental piece supporting all that is the ongoing and perhaps building consensus that the next QE effort will include new money for MBS. "
Matthew Graham : "there's also technical considerations on MBS spreads making them look like they are doing a classic retracement pattern (long explanation, suffice to say, technically supportive spread levels were reached. traders are buyers vs tsys for now)"
Matthew Graham : "there's a fairly strong contingent of "month-end" factors that tend to benefit MBS versus Treasuries in general this week (I think I have a link for you on that)"
Matthew Graham : "Treasuries, of late, have been pulled higher in huge swings by porpoising with german bund yields after the failed auction"
Matthew Graham : "relative to each other, MBS began underperforming treasuries quite a bit earlier this month and a lot of the 2nd half of the month has been "catch up." "
Matthew Graham : "The main reason that MBS can be green today while treasuries are so deep in the red is several-fold..."
Bert Swyers : "how are we green right now?"
Joe Bydzovsky : "REPRICE: 2:35 PM - Fifth Third Mortgage Better"
Jay Bridges : "REPRICE: 1:01 PM - Met-Life Better"
Michael Tadros : "REPRICE: 12:39 PM - Interbank Better"
Michael Tadros : "REPRICE: 12:18 PM - Provident Funding Better"
Thomas Quann : "REPRICE: 12:12 PM - Sierra Pacific Better"
Matthew Graham : "particularly interesting S&P chart in this post, as well as a paragraph on how things sometimes go after triangle breakouts: http://www.mortgagenewsdaily.com/mortgage_rates/blog/237831.aspx "
BVG : "“The short app loan application is the latest customer-inspired feature in our lending solution,” said J.P. Kelly, president, OpenClose. “We feel the best enhancements come from listening to our clients. This short app was something our credit union and community banks were asking for since many of their employees are untrained in the mortgage process."
BVG : "Interesting in a bad way: West Palm Beach, Fla. November 30, 2011 – OpenClose mortgage software developers have added a shortened loan application to its loan origination software. The trend for community banks and credit unions to attract more mortgages continues and the new “short app” was developed to easily initiate the loan process and/or create a home equity line of credit (HELOC). Rather than struggling with the complex 1003 form, employees untrained in the mortgage process can quickly an"
Matthew Graham : "ok, so this is relatively important. Rehn is "up there," and is saying what many are thinking (and some have said), that the EU either needs to move toward a fiscal union or call the whole thing off. "
Matthew Graham : "RTRS- EU'S REHN SAYS: EUROPEAN INTEGRATION CAN ONLY BE ACHIEVED BY A SINGLE LEGAL FRAMEWORK OF ONE UNION "
Matthew Graham : "RTRS- EU'S REHN TELLS EU PARLIAMENT EURO ZONE WILL EITHER UNDERGO DEEPER INTEGRATION OR WILL HAVE TO ACCEPT GRADUAL DISINTEGRATION "
Matthew Graham : "RTRS- EU'S REHN SAYS: WE MAY HELP TO PREVENT A FUTURE CRISIS BY CREATING A REAL STABILITY UNION "
Matthew Graham : "RTRS- EU'S REHN SAYS TREATY CHANGE CANNOT OFFER AN IMMEDIATE SOLUTION TO CURRENT CRISIS "
MBS Market Alerts
