ARCHIVED BLOG POSTS
2008
It was an exciting week for mortgage markets! Tuesday, the Fed and the Treasury announced a new program to purchase up to $500 billion in mortgage-backed securities (MBS), and mortgage rates dropped sharply after the news. The MBS purchases are expected to take place over the next few months. The...
11/26/2008
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MBS prices are up +6/32 (FNMA 30-yr 5.5 at 101.69), below the initial pricing level at +13/32, and below the high for the day at +27/32. Favorable repricing was seen. A lot of economic data came out today ahead of Thanksgiving. October New Home Sales fell to 433K, the lowest level since January 1...
11/26/2008
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MBS prices are up +27/32 (FNMA 30-yr 6.0 at 102.16), below the initial price level at +57/32. Unfavorable repricing was seen. MBS prices reached a high of +62/32. The Fed and the Treasury announced a new program to purchase up to $500 billion in MBS, leading to a huge rally in MBS prices. Strong ...
11/25/2008
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MBS prices are down -8/32 (FNMA 30-yr 6.0 at 101.317), below the initial price level at -3/32. Unfavorable repricing was seen. A 400-point gain in the Dow pushed MBS prices lower. Weaker than average demand for the 2-yr auction also was negative for MBS prices. October Existing Homes Sales fell 3...
11/24/2008
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As the stock market fell to five-year lows during the week, investors moved to less risky investments. Treasury markets were the primary beneficiary of the flight to safety, and Treasury yields reached the lowest levels in decades. Mortgage rates fell during the week as well, but to a much lesser...
11/21/2008
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MBS prices are up +4/32 (FNMA 30-yr + 6.0 at 101.56), above the initial price level at -7/32. It was a volatile session, and favorable repricing was seen. No economic data came out today. This afternoon, CNBC reported that President-elect Obama has selected Timothy Geithner to be the next Treasur...
11/21/2008
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MBS prices are up +6/32 (FNMA 30-yr 6.0 at 101.44), below the initial price level at +15/32. It was a volatile session, and unfavorable repricing was seen. MBS prices jumped after the release of higher than expected Jobless Claims. The Philly Fed index and Leading Indicators both came in a little...
11/20/2008
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Given the current economic climate, the FOMC minutes from the October 29 Fed meeting were very highly anticipated. During the meeting, Fed officials were open to the possibility of further rate cuts due to economic weakness. Some officials expressed concern about the potential for deflation, mean...
11/19/2008
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MBS prices are down -4/32 (FNMA 30-yr 6.0 at 101.19), below the initial price level at -3/32, but far below the high for the day at +10/32. It was a highly volatile session, and both favorable and then unfavorable repricing was seen (expect some after close worse reprices...) Treasuries posted s...
11/19/2008
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MBS prices are up +5/32 (FNMA 30-yr 6.0 at 101.31), above the initial price level at -2/32. MBS markets reached a high of +11/32, and favorable repricing took place. The PPI inflation report was mixed and had little impact. A lack of a clear plan for the use of the TARP funds caused investors to ...
11/18/2008
