Since i wrote the morning update, we have had a turn around. Mortgage backed securities have regained all the losses from yesterday and are actually up 1 tick. The stock market has turned negative and treasuries have started a pretty good rally. Currently the dow is down 40 points and the current yield on the 10 yr treasury note is at 2.84 after touching an intraday high of 2.96. If this trend can continue, it might result in lenders repricing for the better. I say might, due to today being Friday and lenders are always very cautious to pass along any gains ahead of the weekend.
Things are looking better now than they did this morning.