Today’s MBS started out in the green (good for mortgage pricing), but you are possibly going to see a negative reprice this afternoon as investors and banks have an itchy trigger finger because of the 10-Year Bond auction that is happening right now.
Currently, the MBS is trading 12bps under the ending figure yesterday while the 10-Year Treasury is approx. 40bps under the day end numbers. This, as I mentioned above, is not beneficial to mortgage pricing.
However, there are no significant economic reports scheduled for release today so the pricing is going to heavily rely on the overall market conditions. That being said, I am going to extend the float recommendation to this afternoon in hopes that the market starts another upswing (even though we are very close to the ceiling – which increases volatility). If you aren’t a gambler, I would consider locking, but I (personally) am floating for today until tomorrow (or until the bonds start to see a massive downslope).
