Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
# of Forum Posts

Send Article via Email

Can forward to 6 email addresses at a time. Register or Login

Registered users also get the additional advantage of Co-branded Emails and Landing Pages. Learn more about these features.

Your Name: 
Your Email: 
I want to forward this to
(Enter Email Address Below) :
Include a Personal Message (optional)

Please add 3 and 5 and type the answer here:
Leave this field blank.
Email Preview Below:
This feature is now 100% free. Learn More About Co-branded Email and our other Co-branded Services.
This email was sent to you by:
Anonymous |
Mortgage News Daily

Email alerts, such as this one, are a free service provided by Mortgage News Daily. If you would like to receive an alert when important news breaks please register to join our community.
Negative Reprice Risk Picking Up As Flight-to-Safety Reverses
Posted to: Micro News
Thursday, December 27, 2012 3:46 PM

Forward this email:  Send a copy of this story to someone you know that may want to read it.

Around noon, news hit that the House would reconvene on Sunday at 6:30pm. In and of itself, the headline doesn't appear to say much, but considering that much of today's bond market rally was predicated on Harry Reid referring to going over the Fiscal Cliff by saying "Looks like [that's] where we're headed," it stands to reason that some of that flight-to-safety should be unwound if congress is getting together on a Sunday night in late December.

Stocks have taken the news and ran with it while Treasuries and MBS generally did a good job of fighting off the risk reversal at first. At this point, it looks like that admirable display of ground-holding is starting to get a bit shaky as MBS test their lowest levels since before Reid's initial comments at 10am.

Whereas positive reprices were more likely an hour ago, negative reprices are more likely now. Fannie 3.0s are down to 104-24 from 104-29 highs--not a huge move considering we're still 2 ticks higher on the day, but it may be enough for several lenders to already be planning on negative reprices if prices can't immediately find a reason to bounce back above 104-25. Bottom line, negative reprices aren't guaranteed, but they're now more likely than positive reprices and that will continue to be the case at 104-25 or below.

More from MND:


If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.

Forward this email:  Send a copy of this story to someone you know that may want to read it.


More From MND

Mortgage Rates:
  • 30 Yr FRM 3.67%
  • |
  • 15 Yr FRM 2.95%
  • |
  • Jumbo 30 Year Fixed 3.62%
MBS Prices:
Recent Housing Data:
  • Mortgage Apps 10.03%
  • |
  • Refinance Index 11.33%
  • |
  • Purchase Index 8.43%