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The sell-off continues to extend into capitulative territory with MBS now well below their January 4th lows, and well into early September 2012 territory. Nothing new has happened and the current weakness is a product of itself rather than any headline cause and effect (though the latter was the initial catalyst).

Snowball selling, capitulation, pain trade, whatever you want to call it, negative momentum has taken its toll and more of the same can't be ruled out until we bounce back definitively. Really, only the lenders who priced late in the morning and who erred on the conservative side stand a decent chance of NOT repricing.

More from MND:

• MBS Commentary: MBS RECAP: Technically an Early Close, but Buyers Never Showed Up
• Mortgage Rate Watch: Mortgage Rates Hold Steady Ahead of 3-Day Weekend
• MBS Commentary: MBS MID-DAY: Negative Reprices in the AM: Breakfast of Champions
• MND NewsWire: Delinquency Rate Hits Post Housing Crisis Low for Freddie Mac
• Pipeline Press: Government Furlough Days; H.R. 1077's Impact on QM And 3% Limit; MBA on GSE risk sharing

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