The 30 yr bond auction at 1pm was very successful with a large foreign demand and after the auction treasuries moved lower in yield. The stock market is up 140 points which normally would pull money out of mbs; however, we are up about .125 in discount on the day. It has been reported that some lenders are starting to reprice for the better.
In other news, Bernie Madoff who conducted the biggest ponzi scheme in history pled guilty to 11 counts and was ordered directly to prison pending sentencing. Also, it has been reported that the mark to market accounting rule will be modified in April which is probably part of the reason the stock market is rallying. I did say earlier if the dow rallies, you may want to consider locking but it looks like you can be patient. I will post back later if we see mbs turn the other direction but so far we are having a positive day. Always keep in mind, anytime you can lock under 5%, you might want to consider locking.