MBS Day Ahead: Are Rates Ready To Be Done With This Correction?
First thing's first, any conversation about rates in a mortgage market context would be incomplete without considering this week's regulatory drama. Specifically, FHFA just more than DOUBLED G-fees for refinances. Read all about it in the mega recap HERE . This surprise move threw lenders for a loop and most of them pulled pricing back significantly for obvious reasons. In other words, there was/is a disconnect between MBS movement and rate sheet changes and it could persist for another few days depending on the lender. Nonetheless, I'd generally expect that most of the disconnected movement between markets and rates would have happened yesterday. If the broader bond market is able to find a supportive ceiling for rates, the mortgage market should benefit from that as well. So is...(read more)