MBSonMND: MBS RECAP
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FNMA 3.5
101-19 : +0-16
FNMA 4.0
104-14 : +0-12
FNMA 4.5
106-08 : +0-09
FNMA 5.0
107-30 : +0-06
GNMA 3.5
103-18 : +0-16
GNMA 4.0
106-24 : +0-12
GNMA 4.5
108-30 : +0-08
GNMA 5.0
110-16 : +0-05
FHLMC 3.5
101-12 : +0-14
FHLMC 4.0
104-09 : +0-14
FHLMC 4.5
105-31 : +0-09
FHLMC 5.0
107-21 : +0-06
Pricing as of 4:02 PM EST
Afternoon Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBSonMND Dashboard .
3:48PM  :  FOMC Meeting Begins Tomorrow. Limited Economic Data
With the actual results/announcement of the FOMC meeting not arriving until Wednesday and with the only piece of scheduled economic data being Housing Starts at 830am, we'd expect bond markets including MBS to be driven primary by the stock lever and perhaps to a greater extent, any new developments out of Europe.

As 10yr notes dug into the lower 1.9's on a few occasions today and MBS touched their concrete ceilings around 101-25 in Fannie 3.5's and 104-19 in Fannie 4.0's, we're anxious about getting a bullish enough cue from data, headlines, or even following the FOMC to break through previous resistance. Anxious =/= impossible though, so we'll see what we'll see. For a detailed look at the entire week of economic events, see the following link:
3:41PM  :  ALERT: Reprices for the Worse Already?
Especially for rates that end up in 3.5 MBS coupon buckets like 4.0 and 4.125% 30yr fixed, there's already a slight chance of previous reprices for the better being taken back as 3.5's have lost 9 ticks from previous highs where several lenders repriced for the better. 3.5's are currently at 101-17 and 4.0's are down 6 ticks from their highs, currently at 104-13. It's a bit early to think that reprices for the worse are on the way, but the downtick is something to be aware of if you were considering locking tonight anyway.
2:27PM  :  ALERT: After Reprices For The Better, Remember The Concrete Ceiling
It's getting to be about that time where reprices for the better should be coming in greater numbers. The day started off good for MBS and has just been exceedingly stable and positive throughout.

Fannie 4.0's are up 16 ticks at 104-18
Fannie 3.5's are up 22 ticks at 101-25

A few reprices for the better have already been reported and more may follow. Certainly, it seems that waiting until closer to lock cut-off could make sense on a day like today, but something about those MBS levels should look familiar.

Indeed those represent the "Concrete Ceiling mentioned in the MBS commentary on a few recent occasions. In short, if MBS are able to close more than a tick or two higher than current levels, it'd be the first time ever. With high risk events on the horizon and a decent amount of current positivity owing to fickle European headlines, holding out for incremental improvements in MBS is riskier at these levels than, say, Friday's 104-00 levels. Just something to keep in mind if you see some rate sheet gains that look enticing.
12:22PM  :  Principle Write-Downs? Not For the GSE's says Demarco
(Reuters) - The regulator of mortgage finance giants Fannie Mae and Freddie Mac said mortgage relief programs that stop short of allowing principal write down still deliver results for homeowners seeking to avoid foreclosure without steep costs for taxpayers.

Federal Housing Finance Agency acting director Edward DeMarco said a Federal Housing Administration program that allows principal write-downs may be right for some mortgage investors but is not the best approach for loans financed by Fannie Mae and Freddie Mac.

"We believe the programs we have in place provide borrowers the same benefit in the sense of reducing a monthly mortgage payment to an affordable amount but do so without imposing as big an ultimate loss on taxpayers as an immediate write-down of principal would result in," DeMarco said in an interview with CNBC. (Reporting by Mark Felsenthal, Editing by Chizu Nomiyama)

Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBSonMND Dashboard .
Jason York  :  ".25 was govie"
Jason York  :  "about .21 on conv"
Jason York  :  "about .25 i think"
Jason York  :  "wells just did"
Tony Cardinal  :  "has anybody seen any major reprices yet?"
Jason Wilborn  :  "stocks trying to make a comeback"
Rob Fleming  :  "Thanks Matthew! You echo my feelings on high balance to a tee. Maybe raise the associated credit score on HBL's, but don't get rid of it all together..not right now. Especially with rates as low as they are and with 800 fico borrowers. Just when they get to historic lows, pull the plug on these people? "
Jason York  :  "looks like wells is repricing"
Matthew Graham  :  "and would get a lot of high balance refi's off the fence I'd wager"
Matthew Graham  :  "It seems to me almost too coincidental that the refi.gov talks are happening around the same time as all the high balance hullabaloo. Seems like a no-brainer to include a temporary extension of high-balance eligibility with refi.gov. probably the least extreme thing FHFA could agree to. "
Matthew Graham  :  "also, re: making no sense, yes I agree that it makes no sense on one side of the coin, but the other side is reducing the credit risk for FHFA, something that Demarco has been on a soapbox about to say the least. "
Matthew Graham  :  "https://www.efanniemae.com/sf/refmaterials/loanlimits/pdf/loanlimitsexpiration.pdf"
Rob Fleming  :  "Thanks Matthew. Makes no sense to me, but oh well. Side note- do they have to close by Sept 30, or be originated by Sep 30th? I think they have to be closed, but if it were the other way around(just originated by 9/30) I'd be set."
Matthew Graham  :  "no, it does not look like an extension is in the cards in the short term."
Rob Fleming  :  "Will congress extend the high balance loan limits? Any thoughts. I've been out of the loop(too busy), but might lose a deal if they don't. Is this being tied in with the current jobs legislative proposal?"
Matthew Graham  :  "(Reuters) - A conference call between Greece and its international lenders on Monday may continue into the early morning hours and could possibly continue on Tuesday or later, the country's Finance Ministry said. "(The) conference call could last until the early morning hours tonight and be continued tomorrow or later," the ministry said in a statement Monday evening. "There's no scheduled cabinet meeting over the call tomorrow." (Reporting By Harry Papachristou) "
Matthew Graham  :  "that was one of the contributors to overnight bond rally, but looking a bit anticlimactic now"
Matthew Graham  :  "(Reuters) - A conference call between Greece and its international lenders, also known as the "troika", has begun but no official announcement will be made after it finishes later on Monday, the country's Finance Ministry said. "(The) conference call started at 19:22 (16:22 GMT)," the ministry said. "No official announcement is expected after the call," it added. The call is attended by Greek Finance Minister Evangelos Venizelos, two ministry officials and the heads of the European Union, Inte"
Victor Burek  :  "flagstar improved .7 at 3.875"
Ray J  :  "I'm seeing some down in coupon indication on ratesheet today"