Markets got their long awaited Greece deal after the close last night and it turned out to be less of a triumph than hoped. While it wasn't a comic insult, Germany remains doggedly determined not to let the Greece debt crisis cost them anything on paper, meaning that Greece will have to wait for "member states" to go through their parliamentary approval process before the check can be signed on December 13th. Pretty anticlimactic and markets traded it accordingly with the Euro ultimately sinking and bond markets ultimately beginning the domestic session in neutral to improved territory after bouncing back from overnight volatility. That sentiment carried through the morning despite stronger-than-expected economic data and was helped along later by Majority Leader Reid's comments on the frustrating lack of progress in the Fiscal Cliff negotiations.
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
Positive Reprices Continue To Trickle In As MBS Grind Higher
MBS have been grinding higher in a tight range all morning with several lenders now having repriced positively. The friendly price action in Fannie 3.0s looks like it should have motivated even more reprice activity, but we'd note that many lenders didn't release their first rates of the day until after 3.0s had already crested 105-00.
Now that we're up to 105-06, some lenders who weren't keen to reprice previously may now be considering it. at 2:22pm, equities markets began a major sell-off which has spilled over positively for bond markets. 10yr yields are down over 2bps on the day at 1.6386 while S&P futures shed 8 points in less than 10 minutes.
Live Chat Featured Comments
Roland Wilcox : "REPRICE: 3:38 PM - USBank Better"
Matthew Graham : "just over 106 TB"
Tom Bartlett : "MG or anyone know the best pricing for the 3.0 FNMA ever, off the top of their head?"
Ken Crute : "wells website has a purchase at 3.25% with 1 point 30yr fixed "
Andy Pada : "I think refi too"
Adam Quinones : "just purchase biz or refi too Andy?"
Andy Pada : "I've seen Wells retail be really aggressive as well "
Andy Pada : "Everyone is going to want to deliver into the Agencies after Jan. 2 in order to take advantage of the new repurchase waiver policy."
Alan Craft : "Would be a significant turn around from recent retail pricing nad I see no reason why when they are still at capacity"
Christopher Stevens : "The retail purchase rates are better but their refi rates are terrible."
Andy Pada : "sounds interesting...I have this belief that pricing for at least the next 20+ days will be not so generous by the correspondents"
Jeff Anderson : "REPRICE: 3:18 PM - Chase Better"
Alan Craft : "I doubt that"
Adam Quinones : "not seeing that on their web sites though. Stuck at 3.5%"
Adam Quinones : "Andy I have been hearing that the major retail shops are about a full point better in price compared to correspondent pricing. "
Andy Pada : "Are you guys seeing not so generous premiums on the 15 and 30 day locks?"
Matthew Graham : "Looks like Reid comments: "disappointed with little progress" re: Fiscal Cliff negotiations."
Tom Schwab : "REPRICE: 2:36 PM - AMC Better"
Jeff Anderson : "Congress must have returned to DC. Afternoon, all."
Matthew Graham : "not looking EU-related, and definitely hit equities much more than bond markets. No idea on causality yet, but 'tis "something." Something more than serendipity anyway."
Matt Hodges : "specific news from fiscal cliff or EU?"
Matthew Graham : "major equities tankage about 8 minutes ago. Little extra push for bond markets. "
Victor Burek : "REPRICE: 2:24 PM - Nexbank Better"
Tim Gray : "REPRICE: 2:09 PM - Interbank Better"
Lynn ONeal : "REPRICE: 2:06 PM - Franklin American Better"
Matt Hodges : "if any of you have a decent relationship or know your Senator/Delegate in your state, i'll be glad to give you background on the subordination statute"
Matthew Graham : "I applaud your efforts MH, and your willingness to help others with similar state-level initiatives. "
Matt Hodges : "this and the TX statute should be models nationwide"
Matt Hodges : "cool, i'll keep both of you informed on progress of the bill"
Ken Crute : "be glad to show my support for such a worthy cause "
Matt Hodges : "Ken - could you use you as well"
Matt Hodges : "1. $5000 or fee, prepays, etc 2. 1-4 unit, not just 1 unit and 3. ARM interest rate is irrelevant (don't need to improve the rate to get to fixed)"
Matt Hodges : "jason - we are submitting 3 changes to auto-subordination statute. Want to head to Richmond to testify in front of subcommittee in Jan?"
Eric Franson : "REPRICE: 1:37 PM - Wells Fargo Better"
Jason York : "agreed, jsut putting it out there, as it could appear once in a blue moon"
Matt Hodges : "that's not really practical, as most shorts are late and most lenders will overlay. "
Jason York : "actually 2yrs for conventional if 80% ltv, 4yrs for 90%, and 7 for less than 10%"
Thomas Nelson : "From NYCB's website.......A deed-in-lieu of foreclosure is a transaction in which the deed to the real property is transferred back to the servicer. A pre-foreclosure sale or short sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer. A four-year period is required to re-establish credit, measured from the completion date. A maximum LTV ratio of the lesser of 90% or the maximum LTV ratios for the "
Clayton Sandy : "REPRICE: 12:10 PM - Provident Funding Better"