ARCHIVED BLOG POSTS
2008
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MBS prices are up 3/32 (FNMA 30-yr 6.0 at 99.81), below the initial price level at +8/32. Unfavorable repricing took place late in the day. As expected, the Fed cut the Fed Funds rate by one half point to 1.00%. The statement contained few surprises. According to the Fed, recent actions have impr...
10/29/2008
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MBS prices are down -18/32 (FNMA 30-yr 6.0 at 99.72), far below the initial price level at -7/32. Unfavorable repricing took place. Today, the stock market surged, and the Dow gained almost 900 points to close above 9,000 (woo hoo!!!). MBS and Treasury markets were hurt, as the primary movement...
10/28/2008
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MBS prices are down 17/32 (FNMA 30-yr 6.0 at (100.28), far below the initial price level at -4/32. Unfavorable repricing took place more than once. The story was that hedge funds and financial institutions continued to liquidate investments to raise capital. Stocks, MBS, and oil all moved lower t...
10/27/2008
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While the headlines were focused on the poor performance of the stock market, mortgage rates improved moderately during a volatile week. Mortgage rates were helped by a couple of factors. Seeking to reduce risk, investors sold stocks and moved the funds into relatively safer Treasury bonds and go...
10/24/2008
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MBS prices are down -22/32 (FNMA 30-yr 6.0 at 100.72), below the initial price level at -3/32, and at the low for the day. Unfavorable repricing took place. The September Existing Home Sales report showed a 5.5% increase from August, which far exceeded the consensus forecast, to the highest level...
10/24/2008
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MBS prices are down -13/32 (FNMA 30-yr 5.5 at 101.41), below the initial price level at -7/32, and at the low for the day. Unfavorable repricing took place. Today's Jobless Claims data came in a little higher than expected and had little impact. The spread between Treasury and MBS markets grew si...
10/23/2008
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MBS prices are up +4/32 (FNMA 30-yr 5.5 at 100.81), above the initial price level at +2/32. It was a volatile session, and MBS markets moved between unchanged levels and a high of +10/32. No economic data came out today. The main story was a large decline in the stock market due to investor conc...
10/22/2008
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MBS prices are up 1 and 0/32 (FNMA 30-yr 6.0 at 101.72), WAY above the initial price level at +7/32. Favorable repricing was seen, more than once!. Investors were comforted today when Libor rates and other measures of credit tightness moved lower. Fed Chief Bernanke testified and supported a new ...
10/20/2008
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On Monday, the government announced that it will use up to $250 billion of the $700 billion rescue fund to make equity investments in a wide range of financial institutions. Their purpose is to inject capital into the banking system and encourage lending. Many other countries have taken a similar...
10/17/2008
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MBS prices are up +7/32 (FNMA 30-yr 6.0 at 100.69), below the initial price level at +9/32. A low of -1/32 was reached and unfavorable repricing was seen. Housing Starts and Consumer Sentiment came in much lower than expected. After swinging in a 560-point range, the Dow ended down 130 points. Th...
10/17/2008
