MBS Live: MBS Afternoon Market Summary
After losing ground every single day in the previous holiday-shortened week, bond markets got back to business today in improved territory through the 3pm Treasury close.  Fannie 3.0s began that week with highs of 105-00 last Monday and nearly matched them again today, though they spent most of the session sideways around 104-29.  Treasuries too, were moderately improved but leaked higher in yield after the 11:00am completion of the Fed's scheduled "Twist" buying--one of the only informative/tradable events of the day.  Apart from that, markets are left to wait it out for news from the EU regarding a potential agreement to disburse Greek bailout fund.  We still don't know if there's an approved deal coming, but expect to hear one way or the other some time this evening.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
104-28 : +0-09
FNMA 3.5
106-16 : +0-08
FNMA 4.0
106-31 : +0-04
FNMA 4.5
107-22 : +0-04
GNMA 3.0
106-12 : +0-11
GNMA 3.5
108-19 : +0-09
GNMA 4.0
109-08 : +0-05
GNMA 4.5
108-25 : +0-05
104-17 : +0-10
106-05 : +0-09
106-14 : +0-04
106-31 : +0-04
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 this afternoon.

3:03PM  :  MBS Shake Off Afternoon Weakness, Sideways Ahead Of Greece News
Following the 11:00am conclusion of the Fed's scheduled "twist" buying in the 25-30yr maturity range, bond markets looked to have put in their best levels of the day, and indeed this has been the case so far. 10yr yields never made it lower than 1.64 and Fannie 3.0s topped out at 104-31. MBS followed Treasuries weaker, but held their ground just after 2pm.

It's becoming apparent that markets won't get an announcement on the Greek bailout payment until after the close, and thus seem content to fly holding patterns until then. So whatever market-moving potential the announcement (or lack thereof) ends up having, will be more readily seen in the overnight session and possibly even tomorrow.

In other recent news, the White House announced that the President held talks over the weekend with Speaker Boehner and Majority Leader Reid on the Fiscal Cliff. Equities markets briefly traded higher on the announcement (despite its lack of detail) and bond markets briefly followed higher in yield, but nothing substantial on either side. Fannie 3.0s continue to hold a tight range between 104-27 and 104-29 since just before 1pm.
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.

Tom Schwab  :  "REPRICE: 3:51 PM - Flagstar Better"
Daniel Cruz  :  "REPRICE: 1:58 PM - Sun West Mortgage Better"
Robin Baran  :  "If you look up FNMA guidelines they are pretty specific as to definition of second home and it says no rental income. "
MMNJ  :  "I thought the old rule used be that you can rent up to 6 weeks per year and not have it count as NOO< but try getting that through any UW in this day and age. I see $1 of rental income I am treating it as NOO just to be safe"
Matt Hodges  :  "will ALWAYS treat as NOO"
Gus Floropoulos  :  "it's a tricky topic....if its a second home and u declare rental income, most uw's will treat it as an inv. prop......"
Sung Kim  :  "thats kinda not true. there is a diff between claiming and qualifying"
Matt Hodges  :  "$0"
Matt Sullivan  :  "anyone know in general how much rental income a borrower can claim and still classify the home as a second home?"
Kent  :  "REPRICE: 12:32 PM - Franklin American Better"
Rob Clark  :  "REPRICE: 11:57 AM - Provident Funding Better"

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