Mon, Sep 27 2010, 5:00 PM
Our "float at the MBS price lows, lock at the MBS price highs" strategy has held up quite well this year. MBS prices rallied higher in our range today...
Mon, Sep 27 2010, 1:12 PM
This was a record low "high yield" for a 2-year note auction, yet investors were still more than willing to buy. Although the street took home the maj...
Fri, Sep 24 2010, 11:09 AM
The bad news is we're seeing benchmark yields tick higher today. The good news is loan pricing isn't too too terrible into these lower MBS levels. Reb...
Fri, Sep 24 2010, 8:23 AM
Benchmark interest rates are higher as U.S equity futures rally ahead of durable goods and housing data. In the afternoon, investors will also be reac...
Fri, Sep 24 2010, 5:15 PM
The best day to lock was Wednesday. Although rates rose heading into the weekend (for the third week in a row), consumer borrowing costs are lower tha...
Fri, Sep 24 2010, 1:08 PM
In the BIG PICTURE, disinflation turning into deflation is a more significant reason to believe the Fed would initiate another QE program. This rise ...
Thu, Sep 23 2010, 11:12 AM
I don't want you to think I am panicking about a sell off and consequential spike in mortgage rates though. Overall the environment remains supportive...
Thu, Sep 23 2010, 9:00 AM
After the data flashed the yield curve flattened another 4bps, 2s/10s are now at 207bps. The benchmark 10yr note yield has moved below 2.50% resistanc...
Thu, Sep 23 2010, 8:28 AM
Interest rates are holding near yesterday's lows as equity futures traded lower in the overnight session following news that Ireland’s GDP fell at an ...
Thu, Sep 23 2010, 6:14 PM
With both the FNCL 4.0 (103-00) and the 10yr TSY note (2.50%) trading near firm resistance levels, I continue to favor locking deals closing in the ne...
Thu, Sep 23 2010, 5:58 PM
After ending last week on a three day losing streak, loan pricing made a total turnaround in the first three days of this week, mostly thanks to the o...
Wed, Sep 22 2010, 11:48 AM
The 2s/10s yield is another 6bps flatter at 210bps wide, production MBS coupons are trading to shorter hedge ratios, and benchmark 10s have moved all ...
Wed, Sep 22 2010, 8:34 AM
Treasuries experienced a broad rally yesterday including the benchmark 10-year note shedding 13 basis points to 2.58% while 2-year yields created a fr...
Wed, Sep 22 2010, 3:53 PM
If you were floating your loan last week when rates started to rise, you probably kicked yourself for not locking. If you held out and continued floa...
Tue, Sep 21 2010, 12:40 PM
The fact that we are pointing toward the same reason as an explanation for the behavior of two different markets creates a lot of crosswinds and confu...
Tue, Sep 21 2010, 12:09 PM
The November FNCL 4.0 is trading 10/32 higher at 102-16, this is the high print of the day. Loan pricing is 32bps better vs. what lenders were offerin...
Tue, Sep 21 2010, 8:38 AM
Housing Starts improved 10.5% in August, again on the back of the multi-family market, which rose by 39,000 annualized units or 32%. Single-family st...
Tue, Sep 21 2010, 8:21 AM
Interest rates are marginally lower and equity futures are roughly flat ahead of key housing data and the afternoon release of the policy statement fr...
Tue, Sep 21 2010, 4:26 PM
The post-FOMC bond market rally brings mortgage rates back to where they were last Tuesday, which was the best day to lock last week. 4.25% is still t...
Tue, Sep 21 2010, 2:48 PM
Price action was extremely choppy following the release of the FOMC statement. Since the initial knee jerk reaction, benchmark interest rates have ra...
Tue, Sep 21 2010, 2:17 PM
"Information received since the Federal Open Market Committee met in August indicates that the pace of recovery in output and employment has slowed in...
Mon, Sep 20 2010, 10:34 AM
Rate sheet influential MBS coupons are lower and wider in a "bid wanted" trading environment. This suggest demand for production MBS is still M.I.A a...
Mon, Sep 20 2010, 8:44 AM
New economic data is scant this morning but the focus all week will be housing, kicked off by the release of the homebuilder sentiment survey. U.S. s...
Mon, Sep 20 2010, 4:56 PM
Rate sheet influential MBS coupons totally reversed course this afternoon after getting whacked as week began. The November FNCL 4.0 went out +8/32 at...
Mon, Sep 20 2010, 4:37 PM
So far following the strategy of "lock at the MBS price highs and float at the MBS price lows" has worked out well for us. This strategy will be put t...
Mon, Sep 20 2010, 1:36 PM
Rate sheet influential MBS coupons are off their lowest prices and widest spread levels of the session. The November FNCL 4.0 is currently +0-03 at 10...
Fri, Sep 17 2010, 12:45 PM
Rate sheet influential MBS coupon prices have fallen back to their session lows. The FNCL 4.0 is -0-04 at 102-01. REPRICES FOR THE WORSE ARE POSSIBLE
Fri, Sep 17 2010, 8:40 AM
Led by energy prices, CPI rose 0.3% in August. This was slightly higher than forecast but pretty much on the screws when you back away and look at the...
Fri, Sep 17 2010, 8:25 AM
Both interest rates and equity futures are improving this morning as investor spirits got a bump from better-than-anticipated earnings from Oracle and...
Fri, Sep 17 2010, 4:41 PM
Mortgage rates came into the week on a three day losing streak. After a quick correction on Monday and Tuesday, mortgage rates ended this week on anot...
Thu, Sep 16 2010, 10:15 AM
I bet secondary desks who were waiting to pair off a few hedges are now breathing a sigh of relief as production coupon prices are following benchmark...
Thu, Sep 16 2010, 8:06 AM
Equity futures are marginally weaker and interest rates are smidge lower this morning ahead of key data on inflation, weekly jobless claims, foreign a...
Thu, Sep 16 2010, 5:24 PM
The most obvious development of the day in the bond market was the steeper shape of the TSY yield curve. 2s/10s ticked as wide as 230bps before bargai...
Thu, Sep 16 2010, 2:52 PM
REPRICES FOR THE WORSE HAVE BEEN REPORTED but the FNCL 4.0 is back in its range and a few reprices for the better have been passed along, not too many...
Wed, Sep 15 2010, 10:03 AM
Is everyone enjoying added chopatility in the bond market? Loan pricing certainly traveled a long distance over the course of the last week. What's f...
Wed, Sep 15 2010, 8:19 AM
Both benchmark interest rates and equity futures are weaker ahead of manufacturing data this morning, which is expected to report a slowdown at regio...
Wed, Sep 15 2010, 4:13 PM
Mortgage rates improved significantly on Monday and Tuesday, putting an end to a three day losing streak that pushed par home loan quotes up to 4.375%...
Wed, Sep 15 2010, 3:03 PM
REPRICES FOR THE WORSE REPORTED. REPRICES FOR THE WORSE REPORTED.
Wed, Sep 15 2010, 1:11 PM
Rate sheet influential MBS are holding up a bit better than TSY, but prices are still 6 ticks off the morning highs, when some lenders took down their...
Tue, Sep 14 2010, 8:57 AM
Sales at U.S. retailers posted their largest gain in five months in August on strong receipts at gasoline stations and clothing outlets, further assua...
Tue, Sep 14 2010, 8:24 AM
Markets are hesitant to head in either direction ahead of the U.S. retail sales report.
Two hours before the opening bell, S&P 500 futures are down...
Tue, Sep 14 2010, 4:52 PM
At this point we are seeking to discover a new range, or move back into the old one. Either way the market needs to define its parameters. Clearly 10s...
Tue, Sep 14 2010, 4:22 PM
If you've been floating, you've endured a bumpy ride over the past 5 days but it was worth your while. MORTGAGE RATES HAVE RECOVERED FROM RECENT WEAKN...
Mon, Sep 13 2010, 11:54 AM
The pain trade continued to play itself out in bonds as the week got started in overseas markets last night. General slowness and a "buyers wanted" e...
Mon, Sep 13 2010, 8:52 AM
The week ahead is pretty busy as far as new data goes. Retail sales, industrial production, and inflation data will be highlights.
Mon, Sep 13 2010, 4:59 PM
Considering how well our technical support levels have held up, I am not ready to sound the ALARM BELLS yet, but we remain in a state of HIGH ALERT. R...
Fri, Sep 10 2010, 8:53 AM
One hour before the opening bell, S&P 500 futures are up 3.00 points to 1,105.50 and the 10 year Treasury note is -0-10 at 98-18 yielding 2.792% (+3.3...
Fri, Sep 10 2010, 4:13 PM
AHHHHHHH ALERT ALERT!!! MBS PRICES ARE TANKING!!! ALERT!!!
Fri, Sep 10 2010, 3:58 PM
We had no relevant data on the calendar today and the marketplace was generally quiet as many investors and decision makers took time off for religiou...
Fri, Sep 10 2010, 1:12 PM
Even for a Friday, pricing got whacked today! Rebate is 41.6bps worse in the last 48 hours. Week over week isn't any better. Reductions are robust acr...
