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There was a bit of "which way do we go" after Obama's political appeal to middle class Americans to Tweet their Congresspeople about resolving the Fiscal Cliff. But we're now seeing the answer is "lower" for MBS, which have now moved to their session lows, down 1 tick at 105-03. Meanwhile, stocks are at their highs, as are Treasury yields with some additional pressure created by the need to take down the 5yr Note auction at 1pm.

Depending on what time of day a particular lender was out with their first rate sheets, we've now crossed into "negative reprice risk" territory. For some lenders, this may not be a foregone conclusion, but the faster-acting lenders could be close at these levels.

More from MND:

• MBS Commentary: The Day Ahead: Do or Die Time for MBS
• MBS Commentary: MBS RECAP: Attempting To Consolidate After Wednesday's Sell-Off
• Mortgage Rate Watch: Mortgage Rates Carried Higher Still By Yesterday's Momentum
• Pipeline Press: Can't Count on Low Rates Forever, Right? Why QE3 Could be Expensive; HUD disaster relief
• MND NewsWire: New Homes Hit Record Median Price in April, Sales Rise

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