The 5.5% coupon is holding around 19-20/32nds improved on the day and the 6% coupon about 8 ticks less.

We're not seeing a catastrophic race among traders to buy mortgage bonds, but at least they are not pouring gas on them and setting fire to them as they did yesterday.

Now the waiting game begins for a few hours to see if this will hold by the time we get rates today.  If so, I don't expect lenders to pass all the savings onto us quite yet, but look for a .375-.5 improvement in the lower rates and a more modest improvement near PAR.

This could be out the window by the time we get rates in a couple hours so check back then.