Last week was unpleasant in the mortgage world, to say the least. Rates suffered a double whammy due to the surprise 50bp LLPA on refis and the trend breakout in the broader bond market. Ideally, lenders will have priced in the worst of the LLPA drama last week. Combine that with a potentially supportive reversal in bonds, and this could be a much better week.
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20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
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NAHB Builder Confidence 78 vs 73 f'cast, 72 prev
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NY Fed Manufacturing 3.7 vs 15.0 f'cast, 17.2 prev
Bonds opened slightly stronger as they continue lowering the defenses raised to last week's heavy supply. Gains faded a bit at the 9:30am NYSE open, but both MBS and Treasuries are now back to their best levels of the day.
Bonds improved until 12:25pm ET, and have slowly been giving back some of the gains since then. MBS and Treasuries are both still in positive territory. UMBS 2.0s are up an eighth after being up nearly a quarter point earlier. 10s are down 2.6bps at .6833, up from lows of .6671
MBS Market Alerts
