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Mortgage News Daily

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MBS RECAP: Mortgage Struggle Back To Yesterday's Weakest Levels
Posted to: MBS Commentary
Thursday, November 29, 2012 4:05 PM

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MBS Live: MBS Afternoon Market Summary
It was an exceedingly tepid and flavorless session for broader bond markets, but especially for MBS.  Fannie 3.0's began the session chopping around unchanged levels vs yesterday's close.  Considering yesterday went out at the lows, that wasn't an especially positive development and lenders first round of rate sheets mostly reflected that.  Movement in markets beyond MBS continues shouting at any old dogs left to toss out previous assumptions about economic data.  The stock market's reaction to Fiscal Cliff comments was four times bigger than whatever you'd call the barely detectable amount of movement following the release of GDP and Jobless Claims.  Hint: that wasn't because of some balanced struggle between the bulls and the bears as they hashed out a meaningful response to economic fundamentals!  Markets really didn't care about the morning data, preferring instead to sit and wait for whatever might be said about the Fiscal Cliff and subsequently react.  Even then, the movements are small in the context of recent weeks and months and despite the frustrating and lifeless session, MBS are still in their best territory since 11/9 with the exception of yesterday.  Hard to be too frustrated about that.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
105-03 : +0-01
FNMA 3.5
106-19 : +0-01
FNMA 4.0
107-02 : +0-03
FNMA 4.5
107-23 : +0-01
GNMA 3.0
106-17 : +0-01
GNMA 3.5
108-22 : +0-04
GNMA 4.0
109-11 : +0-04
GNMA 4.5
108-27 : +0-01
FHLMC 3.0
104-23 : +0-01
FHLMC 3.5
106-07 : +0-01
FHLMC 4.0
106-16 : +0-03
FHLMC 4.5
106-31 : +0-00
Pricing as of 4:04 PM EST
Afternoon Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this afternoon.

1:20PM  :  ALERT ISSUED: Moderately Strong 7yr Auction Helps Reinforce Pre-Auction Trading Levels
Although the 7yr Treasury auction came in a slightly higher than expected yield, bond markets had rallied into the 1pm auction deadline sufficiently to leave the 0.003% miss in a less unfavorable light. Couple that with the strong internals such as a 2.81 bid-to-cover vs a recent average of 2.65 and it was actually a moderately strong outing for 7's.

It would be a bit of stretch to say that markets rallied in response to the auction, but perhaps more fair to note an absence of negative fallout. Whatever rally we've seen in bond markets is due to the congressional conga line of Fiscal Cliff comments that began just before noon. If anything, yields moved microscopically HIGHER following the results, but given the stabilization in equities markets, we could easily imagine them moving higher than they did, had it not been for the easily digestible auction stats.

10yr yields are 2bps improved on the day now to 1.613 and Fannie 3.0 MBS are 3 ticks higher at 105-04. These gains aren't sufficient for positive reprices in and of themselves, but we couldn't rule out a "stability reprice" from a lender or two.
11:58AM  :  MBA’s Stevens Asks Congress to Reconsider Increasing Fannie/Freddie Guarantee Fees
David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement today regarding H.R. 6429, a bill that would increase costs for future homebuyers by raising the guarantee fees charged on single family mortgages by Fannie Mae and Freddie Mac in order to pay for certain immigration reforms.

“Fannie and Freddie’s guarantee fees are supposed to be used to help offset the risk inherent in providing mortgages, and any increases to those fees should be used for that purpose. Dipping back into the housing piggybank to pay for unrelated policy items on the backs of America’s homebuyers sends the wrong message at a time when the housing market is starting to show signs of recovery.”

“We are asking Congress to reconsider the approach of using guarantee fees for anything other than their intended purpose. Increasing the cost of most mortgages will only add to the uncertainty that is plaguing the mortgage market and holding back a more a robust housing recovery.”
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.

Jeff Anderson  :  "REPRICE: 1:58 PM - Chase Better"
Clayton Sandy  :  "REPRICE: 1:27 PM - Provident Funding Better"
Jeff Statz  :  "FNMA Confirmation of Conventional Loan Limites for 2013 https://www.fanniemae.com/content/announcement/ll1211.pdf"
Ted Rood  :  "Will kick the can off the cliff instead of down the road."
Matthew Graham  :  "RTRS- REID SAYS WON'T KICK THE CAN DOWN THE ROAD ON FISCAL CLIFF "
Matthew Graham  :  "RTRS - BOEHNER SAYS "I'M GOING TO DO EVERYTHING I CAN" TO AVOID GOING OVER FISCAL CLIFF "
Matthew Graham  :  "RTRS- BOEHNER SAYS WHITE HOUSE'S APPROACH TO FISCAL CLIFF TALKS SO FAR IS "WAY OUT OF BOUNDS" "
Matthew Graham  :  "RTRS- BOEHNER SAYS DEBT LIMIT INCREASE MUST BE MATCHED OR EXCEEDED BY SPENDING CUTS "
Matthew Graham  :  "RTRS- BOEHNER SAYS REVENUE IS ON THE TABLE, BUT ONLY WITH SERIOUS SPENDING CUTS "
Ira Selwin  :  "you can actualyl replace the word "weeks" in that first headline with "days" or "months""
Matthew Graham  :  "RTRS- BOEHNER SAYS HAS NO IDEA WHAT COMPROMISES THE WHITE HOUSE IS WILLING TO MAKE ON SPENDING CUTS "
Matthew Graham  :  "RTRS- BOEHNER SAYS TREASURY SECRETARY GEITHNER GAVE NO NEW SUBSTANTIVE PLAN FOR FINDING A FISCAL CLIFF DEAL "
Victor Burek  :  "exactly jr"
Matthew Graham  :  "RTRS- U.S. HOUSE SPEAKER BOEHNER SAYS THERE HAS BEEN NO SUBSTANTIVE PROGRESS IN LAST TWO WEEKS IN FISCAL CLIFF TALKS "
John Rodgers  :  "they should have been working on this all year instead of trying to win an election. "
Matthew Graham  :  "and re: "not leaving anything to doubt:" http://www.mortgagenewsdaily.com/mortgage_rates/blog/284806.aspx"
Matthew Graham  :  "no, what vic said"
Brayden Alexander  :  "fed buying?"
Matthew Graham  :  "I guess markets aren't leaving anything to doubt"
Victor Burek  :  "he doesnt sound optimistic"
Victor Burek  :  "boehner giving press conference on fiscal cliff"
Adam Quinones  :  "US FHFA: Fannie/Freddie Loan Limits Unchanched In 2013 - - MNSI "

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More From MND

Mortgage Rates:
  • 30 Yr FRM 4.11%
  • |
  • 15 Yr FRM 3.26%
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  • Jumbo 30 Year Fixed 3.98%
MBS Prices:
  • 30YR FNMA 4.5 107-29 (0-00)
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  • 30YR FNMA 5.0 110-07 (0-01)
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  • 30YR FNMA 5.5 111-05 (0-01)
Recent Housing Data:
  • Mortgage Apps -2.68%
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  • Refinance Index -3.98%
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  • FHFA Home Price Index 0.67%