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Despite the fact that MBS have hit their lowest levels of the session roughly 10 minutes before the FOMC party kicks off, the broader trends in bond markets and equities remains more sideways than "weak." We just happen to be on the far edge of sideways.

This doesn't mean that negative reprices are an impossibility. In fact, with a gap of 5 ticks between highs and lows, it's possible, but most lenders put out rate sheets when prices were only 2-3 ticks higher, if that. As such, any negative reprices would be emotional decisions based on the steady move from highs to lows since noon. Most will likely wait for any post-FOMC volatility to make itself apparent.

Fannie 3.0s are currently down 7 ticks at 102-28 and 10yr yileds are up 4bps on the day at 1.9442. Stocks are flat after opening up roughly 10 points higher in the S&P.

More from MND:

• Pipeline Press: Mel Watt Hearings; Current Origination Numbers; Foreclosure Process Slowdown Merely a Hiccup
• MBS Commentary: MBS MID-DAY: THIS IS WHY YOU WANT MBS LIVE!
• MND NewsWire: Substantial Decline in Foreclosure Inventory Noted in LPS Report
• MND NewsWire: Mortgage Applications Fall Sharply as Rates Rise
• MBS Commentary: The Day Ahead: Has All the Hype Been Remotely Justified?

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