ARCHIVED BLOG POSTS
2009
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MBS prices are up +13/32 (FNMA 30-yr 4.5 at 101.09), above initial price level at +8/32. Today's Jobless Claims and Trade Deficit reports had little impact. MBS markets were helped by very strong demand for the 30-yr auction. The bid-to-cover ratio was 2.92 and foreign buyers purchased 47% of th...
09/10/2009
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Separately, the Fed's Evans suggested that it's too early for the Fed to tighten credit. The Dow is up 50 points. Tomorrow, the Trade Balance and Jobless Claims will be released at 8:30 et. There will be a 30-yr auction at 1:00 et. For the day mortgage rates were nearly unchanged with the 30 yea...
09/09/2009
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MBS prices are up +4/32 (FNMA 30-yr 4.5 at 100.69), above the initial price level at -1/32. It was a quiet session. Demand was about average for the 10-yr auction. The bid-to-cover ratio was 2.77 and foreign buyers purchased 55% of the total. The Fed's Beige Book reported that economic activity i...
09/09/2009
Treasury auctions may have the greatest impact on mortgage rates next week. There will be $70 billion in 3-yr, 10-yr, and 30-yr auctions on Tuesday, Wednesday, and Thursday. It will be a light week for economic data. The Fed's Beige Book will be released on Wednesday, and the Trade Balance will c...
09/08/2009
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MBS prices are up +2/32 (FNMA 30-yr 4.5 at 100.56), above the initial price level of unchanged. MBS prices reached a high of +10/32. No economic data came out today. Demand was very strong for the 3-yr auction, leading to a rally in MBS markets. The bid-to-cover ratio was 3.02 and foreign buyers ...
09/08/2009
The future of Fannie Mae and Freddie Mac made the headlines this week when the Mortgage Bankers Association (MBA) released its restructuring proposal. While the MBA suggested the elimination of the two agencies, it would replace them with new entities which would perform many of the same function...
09/04/2009
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The important monthly Employment report showed mixed results. Against a consensus forecast for a loss of -225K jobs in August, the economy lost -216K jobs. This was the smallest level of monthly job losses since August 2008 and was far below the monthly average of -691K seen during the first quar...
09/04/2009
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MBS prices are down -8/32 (FNMA 30-yr 4.5 at 100.50), below the initial price level at unchanged. MBS markets rose early after today's Employment data, but later fell when the stock market rallied. The Dow is up 75 points. For the week, MBS prices rose about +11/32. Investor sentiment about the...
09/04/2009
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The Fed purchased $25.7 billion in agency MBS during the weekly period ending September 2, slightly up from $25.4 billion the prior week. Freddie Mac reported that average mortgage rates fell in the week through September 3, with 30-yrs hitting 5.08%, from 5.14% the prior week for loans up to the...
09/03/2009
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MBS prices are down -4/32 (FNMA 30-yr 4.5 at 100.75), at the initial price level of -4/32. Today's economic data came in close to expectations. The Treasury announced that it will auction $70 billion in 3-yr, 10-yr, and 30-yr securities next week. As expected, the European Central Bank (ECB) made...
09/03/2009
