Mortgage Blog

MBS prices are down -5/32 (FNMA 30-yr 4.5 at 100.27), which is about 4/32 lower than yesterday at this time. The 30-yr fixed FNMA required net yield (60 day) is now at 4.72% from 4.75% yesterday. Early investors may have priced at higher levels.

MBS prices are lower this morning ahead of today’s 10-yr auction. The Dow is up 10 points. No economic data will be released today. There will be a 10-yr Treasury auction at 1:00 et.

The Mortgage Bankers Association weekly purchase activity index rose 6%, while the refinancing activity index decreased by 2%. Average reported rates for the prior week rose to 5.01% from 4.95% for 30-yr fixed mortgages.

The monthly rollover took place overnight for FNMA and FHLMC 30-yr securities. The current coupon switched from the March to the April contract. If you are tracking daily MBS price movements, April MBS prices reflect a drop of about -11/32 from March. This change is priced in over the course of the month, so the impact on mortgage rates on the day of the rollover is generally no greater than on any other day of the month.

Matt Schepper, Branch Manager

MBS prices are down -5/32 (FNMA 30-yr 4.5 at 100.27), which is about 4/32 lower than yesterday at this time. The 30-yr fixed FNMA required net yield (60 day) is now at 4.72% from 4.75% yesterday. Early investors may have priced at higher levels.

MBS prices are lower this morning ahead of today’s 10-yr auction. The Dow is up 10 points. No economic data will be released today. There will be a 10-yr Treasury auction at 1:00 et.

The Mortgage Bankers Association weekly purchase activity index rose 6%, while the refinancing activity index decreased by 2%. Average reported rates for the prior week rose to 5.01% from 4.95% for 30-yr fixed mortgages.

The monthly rollover took place overnight for FNMA and FHLMC 30-yr securities. The current coupon switched from the March to the April contract. If you are tracking daily MBS price movements, April MBS prices reflect a drop of about -11/32 from March. This change is priced in over the course of the month, so the impact on mortgage rates on the day of the rollover is generally no greater than on any other day of the month.

Matt Schepper, Branch Manager

Comments from a Chinese official have lifted US MBS and Treasury markets. Last night, the official confirmed that US Treasuries remain a key market for China to invest its foreign exchange reserves. The Dow is up 10 points. No economic data will be released today. There will be a 3-yr Treasury auction at 1:00 et.

Matt Schepper, Branch Manager

MBS prices are down -4/32 (FNMA 30-yr 4.5 at 101.02), which is about 6/32 lower than Friday at this time. Unfavorable repricing took place Friday. The 30-yr fixed FNMA required net yield (60 day) is now at 4.76% from 4.71% Friday.

It has been a quiet morning. MBS markets are down ahead of this week’s Treasury auctions. The Dow is down 10 points. No economic data will be released today.

Matt Schepper, Branch Manager

MBS prices are down -8/32 (FNMA 30-yr 4.5 at 101.06), below 9:45 et pricing of -6/32. Unfavorable repricing took place. MBS prices fell to a low of -15/32 following the release of stronger than expected Employment data and then moved higher during the second half of the session. The Dow is up 120 points. For the week, MBS prices rose about 1/32.

The Economic Calendar will be very light next week. The Trade Balance will be released on Thursday. The big Retail Sales report will come out on Friday. Retail Sales account for about 70% of economic activity. Consumer Sentiment will also be released on Friday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. There were strong reactions to the last auctions for these securities.

Matt Schepper, Branch Manager

MBS prices are down -2/32 (FNMA 30-yr 4.5 at 101.06), which is about 6/32 higher than yesterday at this time. The 30-yr fixed FNMA required net yield (60 day) is now at 4.73% from 4.76% yesterday. Early investors may have priced at higher levels.

This morning, weekly Jobless Claims fell to 469K, right on target with the consensus forecast. The 4-week average declined to 470K. Fourth quarter Productivity growth was revised higher to 6.9%. The data produced little reaction. As expected, the European Central Bank (ECB) made no change in rates. The Dow is up 40 points. Factory Orders and Pending Home Sales will be released at 10:00 et. In addition, the Treasury will announce the size of upcoming auctions at 11:00 et. The important Employment report will come out tomorrow.

Matt Schepper, Branch Manager

MBS prices are down -3/32 (FNMA 30-yr 4.5 at 101.00), which is about 1/32 higher than yesterday at this time. The 30-yr fixed FNMA required net yield (60 day) is now at 4.76% from 4.76% yesterday.

This morning, the ADP private payrolls firm’s estimate for Friday’s Employment report matched expectations. The Dow is up 40 points. ISM Services will be released at 10:00 et and the Fed’s Beige Book will be released at 2:00 et.

The Mortgage Bankers Association weekly purchase activity index rose 9%, while the refinancing activity index increased by 17%. Average reported rates for the prior week fell to 4.95% from 5.03% for 30-yr fixed mortgages.

Matt Schepper, Branch Manager

MBS prices are down -4/32 (FNMA 30-yr 4.5 at 100.31), which is about 3/32 lower than yesterday at this time. The 30-yr fixed FNMA required net yield (60 day) is now at 4.76% from 4.76% yesterday.

An improvement in the economic prospects for Greece has caused investors to move away from the safety trade, hurting US Treasuries and MBS. Otherwise, it may be a quiet session. The Dow is up 50 points. No economic data will be released today.

Matt Schepper, Branch Manager

MBS prices are down -1/32 (FNMA 30-yr 4.5 at 101.02), which is about 1/32 higher than Friday at this time. The 30-yr fixed FNMA required net yield (60 day) is now at 4.76% from 4.77% Friday.

This morning, January Personal Income showed an increase of just 0.1% from December, below the consensus forecast of 0.4%. Consumer Spending accounts for about 70% of economic activity, and rising income enables greater spending. The January Core PCE price index rose at a tame 1.4% annual rate. There was little reaction to the data. The Dow is up 50 points. The ISM index and Construction Spending will be released at 10:00 et.

Matt Schepper, Branch Manager

Last business day of the month!!

MBS prices are up +3/32 (FNMA 30-yr 4.5 at 101.02), which is about 6/32 higher than yesterday at this time. The 30-yr fixed FNMA required net yield (60 day) is now at 4.77% from 4.79% yesterday.

This morning, the Chicago PMI national manufacturing index rose to 62.6, above the consensus forecast of 60.0. The first revision to fourth quarter GDP showed a small increase to 5.9% from 5.7%. There was little reaction to the data. The Dow is down 10 points. Existing Home Sales and Consumer Sentiment will be released at 10:00 et.

Matt Schepper, Branch Manager