The stack remains stagnant as the market prepares themselves for any new quantitative easing verbiage from the Federal Reserve tomorrow. It has been a relatively boring day (week) in MBS world. The stack continues to trade in a tight range. A few aggressive lenders have issued reprice for the better alerts...the majority of mortgage bankers have however kept rate sheets stable today.

Many have asked "What happens to mortgage rates when the Federal Reserve stops buying????" My response has been the Fed will most likely keep purchasing MBS (quantitative easing) until they dont need to anymore. Today JP Morgan Chase issued a helpful statement in regards to that inquiry...

"We expect the Fed to extend their MBS purchase program beyond June, causing government-related sponsorship of the mortgage market to approach as much as $3 trillion by the end of 2009"

WE AGREE AND EXPECT THEM TO PURCHASE TREASURY DEBT AS WELL

APRIL FN30_______________________________

FN 4.0 -------->>>> +0-02 to 99-02 from 99-00

FN 4.5 -------->>>> +0-02 to 101-03  from 101-01

FN 5.0 -------->>>> +0-02 to 102-11 from 102-09

FN 5.5 -------->>>> +0-02 to 103-01 from 102-31

FN 6.0 -------->>>> +0-02 to 103-20 from 103-18

APRIL GN30_____________________________

GN 4.0 -------->>>> +0-04 to 99-05  from 99-01

GN 4.5 -------->>>> +0-04 to 101-10  from 101-06

GN 5.0 -------->>>> +0-04 to 102-25 from 102-21

GN 5.5 -------->>>> +0-04 to 103-13 from 103-09

GN 6.0 -------->>>> +0-02 to 103-25 from 103-23

I HAVE BEEN HEARING SOME INTERESTING INCIDENTS REGARDING CREDIT REPORTS. HAVE YOU NOTICED BORROWER FICO SCORES ARE MUCH MORE SENSITIVE?

For example a 10-15 point drop for seemingly no reason?