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Fannie 3.0s are back in line with prices that prevailed before this morning's stronger-than-expected Durable Goods data, now down 6 ticks on the day at 103-09. Naturally, the hit to rate sheets has been much larger than 6/32nds in most cases, not to mention the fact that rate sheet print times fell hard on the heels of the more disconcerting moments of the morning sell-off.

On any other day, we'd already be seeing a positive reprice or two. The slow grind back toward "less bad" levels does indeed create that possibility, but we'd emphasize the differences between today and a normal morning sell-off during a less chaotic time for bond markets. Possibilities > Likelihoods, but at least we're moving in the right direction.

More from MND:

• 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
• MBS Commentary: MBS MID-DAY: Treasuries Green, MBS Red

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