MBS Live: MBS Morning Market Summary
The first highs of the morning remain intact for MBS as do the first lows of the morning for TSY yields.  The Spanish auction overnight was a dud.  Morning economic data gave bond markets a minor lift, but both TSYs and MBS remained decidedly inside the week's trading range.  Things couldn't be any more boring, trendless, and apathetic even if we hit them with the boring, trendless stick of apathy!  Volume is up slightly from yesterday, but low in general.  The week continues to make us question why we're paying attention, yet somehow, we continue to pay attention just to make sure we still don't need to.  
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.5
103-18 : +0-03
FNMA 4.0
105-19 : +0-02
FNMA 4.5
106-32 : +0-01
FNMA 5.0
108-19 : +0-01
GNMA 3.5
105-04 : +0-04
GNMA 4.0
108-02 : +0-02
GNMA 4.5
109-15 : +0-00
GNMA 5.0
110-27 : +0-01
FHLMC 3.5
103-11 : +0-03
FHLMC 4.0
105-07 : +0-02
FHLMC 4.5
106-16 : +0-00
FHLMC 5.0
108-03 : +0-01
Pricing as of 11:05 AM EST
Morning Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this morning.

10:07AM  :  NAR: Existing-Home Sales Decline in March but Inventory Down, Prices Stabilizing
Existing-home sales were down in March but continue to outpace year-ago levels, while inventory tightened and home prices are showing further signs of stabilizing, according to the National Association of Realtors.

Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 2.6 percent to a seasonally adjusted annual rate of 4.48 million in March from an upwardly revised 4.60 million in February, but are 5.2 percent above the 4.26 million-unit pace in March 2011.

Lawrence Yun, NAR chief economist, said the recovery is in the process of settling into a higher level of home sales. “The recovery is happening though not at a breakout pace, but we have seen nine consecutive months of year-over-year sales increases,” he said. “Existing-home sales are moving up and down in a fairly narrow range that is well above the level of activity during the first half of last year. With job growth, low interest rates, bargain home prices and an improving economy, the pent-up demand is coming to market and we expect housing to be notably better this year.”

Total housing inventory at the end of March declined 1.3 percent to 2.37 million existing homes available for sale, which represents a 6.3-month supply2 at the current sales pace, the same as in February. Listed inventory is 21.8 percent below a year ago and well below the record of 4.04 million in July 2007.
10:04AM  :  ECON: Philly Fed Index Weaker-Than-Expected
*Headline 8.5 vs 12.0 consensus, 12.5 in March
*New orders lowest since September
*Headline lowest since January

Manufacturing firms responding to the April Business Outlook Survey indicated that regional manufacturing activity expanded modestly this month. The survey’s broad indicators for general activity, new orders, and shipments all remained positive but fell slightly from their readings last month. The indicator for current employment, however, showed a notable improvement. Price pressures were only slightly more widespread this month. The survey’s broad indicators of future activity remained at relatively high readings, and firms were more optimistic about their plans for hiring over the next six months.
10:01AM  :  Freddie Mac: Fixed Mortgage Rates Edge Slightly Higher
30-year fixed-rate mortgage (FRM) averaged 3.90 percent with an average 0.8 point for the week ending April 19, 2012, up from last week when it averaged 3.88 percent. Last year at this time, the 30-year FRM averaged 4.80 percent.

15-year FRM this week averaged 3.13 percent with an average 0.7 point, up from last week when it averaged 3.11 percent. A year ago at this time, the 15-year FRM averaged 4.02 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.78 percent this week, with an average 0.7 point, down from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 3.61 percent.

1-year Treasury-indexed ARM averaged 2.81 percent this week with an average 0.6 point, up from last week when it averaged 2.80 percent. At this time last year, the 1-year ARM averaged 3.16 percent.
9:26AM  :  ALERT ISSUED: Bond Markets Slightly Improved Following Jobless Claims
Spain!!! You let us down!

There was a glimmer of hope that last night's Spanish 10yr bond auction would stir markets to move with more determination toward one side of their recent, very narrow range. But alas, the demand was higher-than-previous--as expected, but the yield sort of offset that, coming in at 5.743 vs 5.403 last time.

Bond markets hit the NY session FLAT! It wasn't until Jobless Claims at 8:30 that Treasuries and MBS were able to eek out some moderate improvements, but please allow us to emphasize just how far short these gains have fallen from challenging the best levels on 4/16. There has been no test of the recent range, and nothing to indicate that TSYs or MBS want one.

So we continue to assume what the actually want is the additional clarity afforded by next week's FOMC Announcement. Without a range break today, this week continues to exhibit one of the narrowest weekly trading ranges on record.

Narrow or not, today is better than yesterday so far. MBS are up 2 ticks in Fannie 3.5 coupons to 103-18 and 10yr yields are down just over a bp to 1.9612. Volume is much better than yesterday, but not "epic," and has been declining since the Jobless Claims pop. Noticeable bounce at 1.95% in 10yr yields, setting up a clear resistance target if we rally any more today.
8:36AM  :  ECON: Jobless Claims "Fall Up" to 386k
*claims 386k vs 370k consensus
*Previous month revised from 380k to 388k
*4-week average rose to 374750 from 369,250

In the week ending April 14, the advance figure for seasonally adjusted initial claims was 386,000, a decrease of 2,000 from the previous week's revised figure of 388,000. The 4-week moving average was 374,750, an increase of 5,500 from the previous week's revised average of 369,250.

The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending April 7, unchanged from the prior week's unrevised rate of 2.6 percent.

The advance number for seasonally adjusted insured unemployment during the week ending April 7 was 3,297,000, an increase of 26,000 from the preceding week's revised level of 3,271,000. The 4-week moving average was 3,317,750, a decrease of 21,500 from the preceding week's revised average of 3,339,250.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.

Jason York  :  "i think you need to call fannie directly, I've had that issue before, where something wasn't added correctly, they got it added, but it took about 30 days"
Rob Ellis  :  "Need suggestion on Fannie issue, borrower's SS # wasn't delivered to Fannie in '07 so DURP not recognized in DU (even though shows Fannie on credit and Fannie lookup tool). Talked to DU helpline they said they can't add the # and borrower needs to contact servicer for manual UW (his servicer doesn't originate so no help there). Any thoughts on getting SS added at Fannie?"
Matthew Graham  :  "RTRS - PHILADELPHIA FED BUSINESS CONDITIONS APRIL 8.5 (CONSENSUS 12.0) VS MARCH 12.5 "
Matthew Graham  :  "RTRS- US MARCH EXISTING HOME SALES 4.48 MLN UNIT ANNUAL RATE (CONS 4.62 MLN) VS FEB 4.60 MLN (PREV 4.59 MLN)-NAR"
Victor Burek  :  "i charge a processing fee to client"
Brent Borcherding  :  ""No additional charge"....there is a cost to a processor and I'm sure the owners aren't just eating that, it's paid for somewhere."
John Rodgers  :  "Just curious, how many of you process your own loans or have loan processors provided by your company at no additional charge?"
John McClellan  :  "and we are at the upper reaches of this years highs...hope thats not a cliff"
Matthew Graham  :  "narrowest week I could find in a couple years"
John McClellan  :  "is this the calm before the storm? it sure has been quite lately"
Matthew Graham  :  "I personally don't think further EU decline would = less QE3 interest due to the fact that flight-to-safety demand for Treasuries is not going to stimulate the economy for a few reasons."
Patrick Waldron  :  "If the Euro economy continues to decline, would the FED become less interested in QE3 due to the belief that a flight-to-safety from EURO would bolster us more than additional FED buying? And is that a stupid question?"
Victor Burek  :  "yes"
Ira Selwin  :  "So all 14 jobless claims this year have been revised up now right?"
Matthew Graham  :  "RTRS- US INSURED UNEMPLOYMENT RATE UNCHANGED AT 2.6 PCT APRIL 7 WEEK (PREV 2.6 PCT) "
Matthew Graham  :  "RTRS- US CONTINUED CLAIMS ROSE TO 3.297 MLN (CON. 3.280 MLN) APRIL 7 WEEK FROM 3.271 MLN PRIOR WEEK (PREV 3.251 MLN) "
Matthew Graham  :  "RTRS - US JOBLESS CLAIMS 4-WK AVG ROSE TO 374,750 APRIL 14 WEEK FROM 369,250 PRIOR WEEK (PREVIOUS 368,500) "
Ira Selwin  :  "It really is"
Matthew Graham  :  "i would say 'lol' but it's just sad at this point"
Victor Burek  :  "go figure, prior week revied worse so media can say claims fell"
Matthew Graham  :  "RTRS - US JOBLESS CLAIMS FELL TO 386,000 APRIL 14 WEEK (CONSENSUS 370,000) FROM 388,000 PRIOR WEEK (PREVIOUS 380,000)"
Victor Burek  :  "rumors of France downgrade causing europe markets to turn"

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