It took MBS a while to hit their highs of the day, but when they did-much like 10yr Treasuries--they simply stayed there, deviating very little from those levels for the rest of the session. Case in point, Fannie 3.0's held a range of 102-21 to 102-24 all afternoon as 10yr yields basically bounced at ever lower heights on lows around 1.604. Stocks moved lower with bond yields as investors generally cast a skeptical eye toward Thursday/Friday's EU Summit after two key attendees from Greece bowed out of the festivities.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
Pricing as of 4:04 PM EST
Afternoon Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts
and updates issued via email and text alert to MBS Live subscribers
MBS Return To Monthly Highs In Quiet Monday Morning Trading
Fannie 3.0 MBS have returned to their modal highs of the month at 102-23 to 102-24 (prices of June coupons were slightly higher near the beginning of the month, but July coupons were not) against an exceedingly calm, low-volume, low-volatility, Monday morning backdrop. Prices were more contained in the first two hours of the day, causing rate sheets to err on the conservative side for a few lenders. We're now seeing several positive reprices as a result.
Despite the positive reprices, markets have been moving more sideways than directionally this morning. 10yr yields have held a narrow 1.604 - 1.628 range and most of the day-over-day "green on the screens" is courtesy of overnight gains rather than new territory forged in the domestic session. MBS are a bit of an exception to that generality, but we'd emphasize that they've merely firmed up in relation to benchmarks, and at least for now, are clearly avoiding a technical break above monthly highs.
That's not really to say anything about changes in lenders' rate sheets at the present moment. Indeed, we may see additional positive reprices here, but just be aware that they're more to do with MBS getting "caught up," and less about some "new rally effort." It's just a quiet Monday morning that happens to have swung favorably for MBS.
General market sentiment seems a little downbeat and pessimistic about this week's EU Summit (which we're totally OK with!). But combine that with the technical grind around the best levels of the month and we're a bit guarded against a technical bounce. This could easily prove to be an unfounded fear and quickly, but until/unless Fannie 3.0's break higher from here (or Treasuries give a clear cue that would lead us to expect that), we're getting that feeling that we sometimes get when it looks like we're hitting our heads on an MBS ceiling, even if it ultimately proves to be a breakable one.
Live Chat Featured Comments
Grant R. Menard : "I agree. but he said he didnt want Wells :) because of the 6 month waiting period to submit a jumbo... "
Chip Harris : "Grant and Brandon, Wells is right there as well if you are tier1. FICO >780 LTV<50 4.375 getting 1.45 back and they give you a 60 day lock."
Grant R. Menard : "Yes sir."
Bryce Schetselaar : "Grant, is that Suntrust's Key Loan Program that you are talking about?"
Grant R. Menard : "Brandon, no one can touch Suntrust.. if you have a 60% ltv or less and an 800 fico you get 1.625 in YSP BACK out of the gate. priced one the other day at 4.375% "
Bryce Schetselaar : "BB, Cole Taylor and UWM are right up there (if not better) on a 30 year fixed"
Joel Marks : "I've been looking, BB, but have yet to find anyone on the wholesale side."
Brandon Blue : "Is there any lender out there that has jumbo fixed rates that are competitive with WF? Wells makes you wait 6 months after broker approval before you can submit Jumbos. Please help!"
Jason Zimmer : "it's about time"
Jason Zimmer : "per WF...When a Social Security Disability Income (SSDI) Award Letter is received supporting the borrower’s monthly disability income, no further documentation is required to verify income continuance. The SSDI award letter must stipulate disability within the body of the award letter to be acceptable."
Victor Burek : "REPRICE: 12:44 PM - Plaza Better"
Aaron Buyside Meyer : "Yes but they have .3 PMI and charge I believe 1% upfront. There is one w/ an appraisal and one w/out an appraisal"
Josh Stika : "Is there such a thing as as USDA Streamline? =)"
Rob Clark : "REPRICE: 12:23 PM - Provident Funding Better"
Lynn ONeal : "REPRICE: 12:01 PM - Franklin American Better"
Victor Burek : "Greece Finance minister Rapanos resigns..he was appointed last week by new greek president"
Andy Pada : "I don't know. Saying that there is so much excess corporate cash that they will put in in Treasuries."
Ted Rood : "Great news, my monitor is fixed, no longer shows all red numbers as it did last week."
B-C : "AP do you think it will happen?"
B-C : "oh yes AP,o i am a believer"
Andy Pada : "many people on CNBC discussing a 10 YR Treasury below 1.00"
Patrick McCarroll : "2 years"
Brayden Alexander : "FHA after a Ch 7. 4years or 2 years?"