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

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 8 and 4 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.
No New Weakness, but Reprice Risk Could be Growing
Posted to: Micro News
Wednesday, July 2, 2014 12:29 PM

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

Occasionally there are viscerally-motivated reprice alerts.  This is one of them.  Most lenders aren't at risk, but soon could be--at least to some extent.

Here's why (in bullet points):

  • tight range post-sell-off this morning for MBS, but favoring the lower end of that range now
  • Treasury benchmarks progressively weakening.  This makes it harder for MBS to continue to hold ground, and savvy lenders are aware of those risks to the price outlook
  • liquidity getting to be more of an issue as the week's only other active trading is unanimously slated for after tomorrow's NFP (lenders are more cautious amid illiquid trading conditions).
  • actual, current prices are pretty close to levels normally associated with negative reprice risk anyway, but in the presence of the other bullet points, risk "feels" a bit higher.

Long story short, prices don't necessarily justify negative reprice risk, but it will probably take less than normal in terms of losses to justify negative reprices for some lenders today.

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:
  • 30YR FNMA 4.5 108-28 (0-00)
  • |
  • 30YR FNMA 5.0 110-17 (-0-04)
  • |
  • 30YR FNMA 5.5 111-30 (0-02)
Recent Housing Data:
  • Mortgage Apps 10.03%
  • |
  • Refinance Index 11.33%
  • |
  • Purchase Index 8.43%