MBS RECAP: Modest Gains Belie Profoundness of Pain for Mortgages

Hot news from AZ Home Help:

Posted To: MBS Commentary

MBS Live : MBS Afternoon Market Summary The blood-letting in MBS continued today in terms of price gains relative to broader rates markets. For instance, 10yr Yields were roughly 6 bps lower than yesterday's close and 5bps better than yesterday's open--a healthy improvement on any day. MBS, on the other hand, merely trickled out in line with yesterday's opening levels in Fannie 3.0s and fared even worse in Fannie 3.5s. It's normal for lower coupons to gain more ground when longer duration debt gains more ground overall (like 10 and 30yr Treasuries falling more in yield vs 2-5's --aka 'yield curve flattening'), but it's not common for MBS to languish so badly behind Treasuries unless something is seriously wrong. Fortunately for the sake of logic, something is seriously wrong ( discussed in...(read more)

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

Source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/311519.aspx

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