|This email was sent to you by:|
Anonymous User |
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
Calmly Grinding to New Highs; Positive Reprice Potential
Posted to: Micro News
Friday, December 20, 2013 11:46 AM
MBS continue to grind along a fairly low-volatility path toward higher prices. Short-covering has helped in Treasuries, as well as 'dip buying' (meaning that prices dipped earlier, and some seized on this as a buying opportunity). Tradeflows have been decidedly positive ever since then, and have had room to run until reaching current levels.
We'd expect to see slower going for the rally here, if not an outright bounce as it coincides with post-FOMC levels from Wednesday. Fannie 4.0s are right on the pivot at 103-06 (meaning that's where prices sank to following FOMC, and where we may start to see resistance today).
All that aside, we've seen enough so far to justify some positive reprice potential. Fannie 4.0s are up 6 ticks on the day, and some early rate-sheet lenders may simply be waiting on prices to level-off before pulling the trigger.
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.