Mortgage Pricing Update: 1/17/2008
Posted by arscherer on January 17, 2008
The economic releases yesterday had a large negative impact on the price of Mortgage Backed Securities. Hopefully, you locked as per the suggestion yesterday. Here is what is going on today:
MBS prices started off slow (lowering 3 bps in price), and are now rallying and currently up 19bps. This is a rather large jump in the market already this morning, and will most likely result in slightly better pricing this morning (by about an eighth of a point). The 10-Year Treasury is skyrocketing in price to almost 60 bps.
With regard to the daily outlook for economic reports, here is what is to come today:
- Housing Starts
- Building Permits
- Jobless Claims
- Philadelphia Fed Index
The only report that may actually have any amount of impact on the current trends for today is the Fed Index release which was scheduled for publication at 10:00am EST.
My suggestion at this point is to float for the rest of the day. I will monitor the market and make sure the prices don’t change significantly. Let’s try to make up yesterday’s pricing meltdown in today’s market.
Again, make sure that you don’t miss an update! As always, let me know if you see something in the market right now, and I will update it to the best of my ability!
