MBS Underperforming as Treasuries Stall. More Reprices Possible

Hot news from AZ Home Help:

Posted To: MBS Commentary

Some reprices for the worse have already been seen and more may follow if current trends prevail or even if they simply fail to reverse course. What are those trends? Several are aligning to raise the risk for continued reprices for the worse: MBS performing worse than benchmarks (aka "widening"), lenders having relatively aggressive rate sheets out (makes them more sensitive to market movements), and of course the much discussed bearish technical resistance still faced by the bond market in general. The technical resistance is most pronounced as 10yr notes attempt to break below 3.60 (and keep failing). While yields have danced around that level at times this morning, we're far from seeing a definitive and confirmed break, not to mention we've seen our fair share of weakness as well. But where...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: www.mortgagenewsdaily.com

- For more real estate news visit our website at http://www.AzHomeHelp.com