There is a "purgatory" range that has been created by the "highest highs" that occurred before the Frannie bailout and the "lowest lows" post bailout.

Those highest highs are at 99-29, and we really haven't gone below that save for a brief 2 minute period yesterday which we would have notified you about had we had "confirmation" under that lever for more than 5 minutes. Nor have we broken through the "lowest low" ceiling pos-bailout of 100-15, though we bounced off it several times in the past few weeks (including this AM).

Now however, we are down to 99-31+, perhaps not quite a 'test' of the floor yet, but certainly lower than we'd like to be. Additional reprices for the worse are a risk, although lenders that have already repriced are not likely to do so again. you're biggest risk are lenders that priced within a 10 minute window centered on 9AM eastern as that time frame represented the highs of the day. For reference, we've lost over .375 YSP since then. Remember though that lenders these days are hesitant to price the "full goodness" of those prices into the market, so unless the slide continues, you're more likely to see reprices for .25 from lenders that have not yet done so. Lenders that priced at 9AM, assuming they've only hit you for an eighth, will probably hit you for another eighth depending on their level of aggressiveness.

ALL THIS comes with the caveat that we expect rates to improve once the bailout is inked, not to mention that we've been at our recent lows from a technical perspective. Techs and fundamentals both point to "float club" being victorious as long as you have "a bit" of time to wait. A bit could refer to as early as tomorrow, or as late as a week or two from now. But as always, the longer, the more certain. Adjust accordingly and stay tuned.