Good news!  It seems that--thanks to some magical domino effect having to do with oil--that this week's market movements can't do anything else but continue in the same direction.  Guaranteed!  Well, at least that's the takeaway from most of the analysis out there.   Apparently, this is just the tip of the iceberg where leveraged funds with exposure to the energy sector are being hunted down and blasted by short-sellers.  I couldn't really follow the logic as to the next domino, but it had everything!  Emerging markets, blue chip stocks, bond yields, you name it.  All going inevitably lower!

Is this for real?  No.  Sorry.  When too many people start making the same bets, they end up being the side that loses.  It's, as yet, undetermined how close we are to that tipping point though, so we're in the same position we always are with respect to the future being unpredictable.  My point here is to throw in a word of caution amid the sound of the herd's galloping hooves. 

The herd galloped today though, and they were no worse for the wear.  All manner of risk was shunned and risk-aversion was in fashion.  This benefits Treasuries much more than MBS, but it didn't stop mortgage rates from making it back below levels last seen on May 28th 2013.  That means we're on the doorstep of erasing the entire taper tantrum.  So yeah... the herd mentality may be something that requires a caveat, but let's hope they keep going.

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
101-09 : +0-13
FNMA 3.5
104-11 : +0-09
FNMA 4.0
106-23 : +0-06
2 YR
0.5440 : -0.0640
10 YR
2.0830 : -0.0860
30 YR
2.7410 : -0.0700
Pricing as of 12/12/14 5:18PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:36PM  :  Obligatory Friday Afternoon Left-Field Reprice Reminder
10:22AM  :  Bond Markets React to Consumer Sentiment (Inflation Expectations)
9:52AM  :  It's Nuts to Think that Oil is the Only Motivation for Bond Markets Right Now

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Andy Pada, Jr.  :  "i think there are two options: full MI coverage and reduced with an llpa"
Kenneth Crute  :  "MCM is 18% non MCM 35% "
Ted Rood  :  "I have yet to see anything regarding MI coverage requirements on new 97's. Has anyone else?"
Kenneth Crute  :  "yes CR, call the attorney that did the closing or the construction loan LO "
Caroline Roy  :  "when a construction loan is initiated, would a bank issue a HUD type doc to show the borrower's downpayment? i have a client who can't seem to drum one up from his bank. Says he never remembers signing something that showed him bringing in cash. "