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Following a somewhat disappointing 30 year bond auction yesterday, prices of mortgage backed securities plummeted and mortgage rates moved higher as lenders repriced for the worse. Prices of mortgage backed securities are considerably lower today. Many lenders have already repriced for the worse. Reports from fellow mortgage professionals indicate that par mortgage rates are priced between 4.625% to 5.000% for the best qualified consumers. ...

Not too often do we see a MBS rally on Friday, but it is happening today. Currently MBS are up .75 basis points which has resulted in most lenders repricing for the better. Fellow mortgage professionals are seeing improvements to price but it appears that lenders are not passing along all the gains. Quite often lenders are more conservative on their rate sheets on Friday hedging against any unknown events taking place over the weekend. ...

In what has become a common occurrence of late, mortgage rates failed to hold below 5%. Following a sizeable rally earlier in the week, mortgage backed securities prices fell nearly a full point yesterday. Consequently lenders were forced to reprice for the worse multiple times and mortgage rates moved higher. By day's end the par 30 year fixed rate mortgage had moved o 5.25% after reaching 4.875% on Wednesday. ...

Mortgage rates took another step higher yesterday following a 3% rally in the stock market. Tame inflation and “not as bad” industrial production numbers have resparked the green shoots theory of a quick economic recovery. Market participants, not wanting to miss out on the rally, quickly sold their fixed income investments to move their money into the higher risk but higher return equity markets. In total, mortgage backed securities moved lower in price (as price moves lower, rates move higher) by 75 basis points which forced all lenders to reprice for the worse with some issuing a couple reprices as the losses snowballed into close. Losing much more was MBS’s closest relative, the benchmark 10 year note, which sold off and moved to a higher yield of 3.63. Just a few days ago, the 10 year note was trading under 3.30 in yield. After mortgage rates briefly touched 4.875% the other day, they have quickly turned and by day’s end yesterday par was sitting at 5.25%...

After making little to no ground during the holiday shortened work week, mortgage backed securities are still in search of clear direction. Last week MBS closed at the same level at which they opened on Monday, even a very poor Employment Situation report was unable to increase demand for "rate sheet influential" MBS coupons. To remind readers, as MBS move higher in price, mortgage rates move lower. Following the release of the employment situation report on Thursday, MBS did manage to gain some ground but eventually gave back early morning gains as market participants made for an early exit ahead of the three day weekend. Matt and AQ inform me that MBS are battling a very unclear economic picture which is prohibiting prices from moving higher. The week ahead is very light on economic reports with the highest impacting events to come from Treasury auctions throughout the week...

Yesterday mortgage-backed securities had their least volatile day since last week's " Black Wednesday " event. MBS traded in a tight range most of the session, closing slightly higher than the previous day's "going out" marks. With all the volatility recently, I have to say it was nice to have a calm day, especially since we ended up in the green. Some of that volatility has returned to the market today but lender's rate sheets still look very similar to yesterdays...