MBS Live: MBS Afternoon Market Summary
To reiterate that which has already been said, today's price movements in MBS belied the level of activity in bond markets. While MBS weren't quite as bad off as Treasuries compared to their recent averages, it was still an unquestionably light- volume day. This made it easier for the loudest voices in the room to direct the price action. In today's case, that happened to be positive for MBS, but likely could have gone either way with markets lining up in a fairly neutral stance heading into ISM data. Said data was weak enough to get a mini-snowball rolling, and the light volume allowed for less pushing to produce the desired effects--namely, moves back to bullish technical targets for both MBS and Treasuries (1.83's in 10yr yields and 103- 09 in Fannie 3.0 MBS).
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
103-10 : +0-05
FNMA 3.5
105-23 : +0-04
FNMA 4.0
106-22 : +0-03
FNMA 4.5
107-25 : +0-02
GNMA 3.0
104-21 : +0-04
GNMA 3.5
107-22 : +0-04
GNMA 4.0
109-03 : +0-03
GNMA 4.5
109-13 : +0-02
FHLMC 3.0
102-27 : +0-05
FHLMC 3.5
105-13 : +0-04
FHLMC 4.0
106-12 : +0-03
FHLMC 4.5
107-04 : +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.
3:14PM  :  Quiet Session Continues. Several Positive Reprices
Several lenders have reported positive reprices as the extremely quiet session continues. Fannie 3.0s have been operating in a narrow 3 tick range between 103-07 and 103-10 (the highs of the day) since the ISM data. 10yr yields have held a similarly narrow range around 1.84%

While neither of these ranges constitute an improvement from 11am levels, the stability has afforded the opportunity for some lenders to pass on the day's underlying gains (currently 5 ticks higher in Fannie 3.0s at 103-09). To whatever extent prices stay stable, reprice possibilities remain.
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.
Paul L. Martin  :  "REPRICE: 2:44 PM - Suntrust Better"
Nate Miller  :  "REPRICE: 2:08 PM - Caliber Funding Better"
Rob Clark  :  "REPRICE: 1:12 PM - Provident Funding Better"
Jeff Anderson  :  "I like today also, CB. Waited for the anticipated reprice from an early rate sheet company, took the impreovement and locked a couple in. Clients are very happy. Love MBSLive."
Nate Miller  :  "wow .300, nice, I'm not seeing anything better than Thursday."
Cory Bannerman  :  "I think today is lock day... I am hitting the top line of my MBS trading trough... time to take risk off the table"
Cory Bannerman  :  "I am staring at roughly .300 better reprice across the board from this morning... "
Eric Franson  :  "REPRICE: 12:19 PM - Wells Fargo Better"
Jason Anker  :  "lots of lender have work arounds for this time of year. I just closed something that needed 2012 tax es to qualify without a 4506 from 2012"
Nate Miller  :  "yep, you can get your refund back in less than 10 days, may take 4-6 weeks for the 4506 to reflect...stinks."
Jason Anker  :  "yes. thats very normal for this time of year. "
rford  :  "My borrower already received his tax refund check for '12, and the 4506T ordered came back with no info. HAs this happened to anyone else before? "
Oliver S. Orlicki  :  "I am off an .125 to .25 from most investors since Thursday"
Oliver S. Orlicki  :  "Is anyone else seeing worse pricing today?"
Matthew Graham  :  "There's little to be missed at the moment. Europe being closed completely saps volume. There was definitely a pop on the ISM data, but it was bigger than it otherwise might have been due to the low volume. Such conditions make it easier for mini-snowballs to get rolling. In this case, the snowball is pushed along by the forced closing of positions among those betting on higher rates short term."
Cory Bannerman  :  "MG... is there any news I am missing here? is ISM and weekend news all thats driving the rally on the 10yr?"
Jeff Anderson  :  "REPRICE: 11:22 AM - Chase Better"
john murphy  :  "EC: it's all or nothing. technically the C Corp loss (after adding back depreciation/non cash/extraordinary gains/losses) can impair the integrit yof the SS or other earned income. UW must consider all sources of income and loss."
Cory Bannerman  :  "EC if the Business that the co-borrower has had a loss you need to count it if you are using any income from that borrower... if you are not using any income from them then I would suggest to your borrowers it might be beneficial to only have the borrower on the loan"
Edie Clark  :  "UW Question: Conv C-O Refinance....co-bwr has owned Restaurant restaurant set-up as a C-Corp, filing just 1120 Tax Return...not 1120-S for 30-years. Using Bwr and Co-Bwr Social Security, Rental Income, and Bwr's W-2 Income from Restaurant owned by co-bwr. UW is deducting 1120-business loss from qualifying income. I've never seen that done...is that right? If not, any help with argument? Thank you."
Oliver S. Orlicki  :  "lets hold below 1.84"
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