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Do you expect the home buyer tax credit extension to contribute to a noticeable pick up in loan production?

Created By: Adam Quinones
  • Yes, I anticipate an increase in activity (25.7%)
  • Only a modest upturn in production (44.9%)
  • Nope. 2009 demand stole from 2010 demand (29.4%)

Federal Reserve MBS Purchase Program





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MBS ALERT: Prices Falling as Benchmark Yields Rise
by Adam Quinones
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The 10yr TSY note yield has pushed through 3.40% and is currently testing 3.42%. This down trade in TSYs has forced "rate sheet influential" MBS prices to the lows of the day.

The FN 4.0 is currently -0-14 at 100-17 yielding 4.2121% while the FN 4.5 is trading -0-15 at 100-14 yielding 4.4494%. The secondary market current coupon is 4.378%.

The FN 4.5 yield is now 103.24bps higher than the benchmark 10yr TSY yield. Cheaper dollar MBS prices should bring out a few real money bargain buyers which will help keep "rate sheet influential" yield spreads from gapping out further.

Looking ahead, we are watching and waiting for the 10 yr to bounce lower at 3.42%. If this occurs the FN 4.5 should stabilize near 100-18. If  the 10yr trades through 3.42% and higher, expect to see REPRICES FOR THE WORSE

MBS, TSY, LIBOR QUOTES

Data provided by Thomson Reuters
Secondary Marketing Managers and Capital Markets Desks, if you are interested in subscribing to the same fixed income and mortgage market data we use:CLICK HERE.

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Edgar  |  Contact or Connect with this Member
on
The mortgage price leader is acting like it's black wed...took away .625% in rebate from yesterday?????
Michael Gannon  |  Contact or Connect with this Member
on
do they know something?
Raymond J Ruddy III  |  Contact or Connect with this Member
on
wow...they must know something. Maybe that Pimco article did it.
Bobby Downey  |  Contact or Connect with this Member
on
Edgar saw that ouch.....their 15 year pricing moved the opposite direction by about the same....lucky for me I had a 15 I need to lock..... They are still better than my other lenders.....
Adam Quinones  |  Contact or Connect with this Member
on
no they are aggressive and thus more nervous about down trades....
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