Looking forward to seeing how this week ends up with the Holiday weekend on the horizon. MBS had a good week really, until yesterday afternoon. After gains in the ball park of 120 bp for the last 5 sessions, several factors (including gas prices and more whispers of inflation being the primary suspects) 22 bp were given back as of yesterday's close. This morning we're currently down anywhere from 30 to 44 bp at 9:30am, we'll see.
Remember, MBS we want UP because that means rates go down. If you're looking at rates, the paper, the evening news, websites like bankrate.com and others, ads, etc., are all not where you need to look. Neither is 10 yr t-bill like so many people still insist. It is the buying and selling of mortgage backed securities that drive interest rates and that's it. Not the Fed either by the way!!!
Bad news is good news for you rate hawks.....except inflation. Poor economic reports will normally cause a drop in the stock market which will lead the charge of dollar bills right into the bond market
Let me know if you want more info, I am always willing to help. Service is priority number one with me and regardless of what direction rates move, service wins out and sustains in our industry.
"The only place success comes before work is in the dictionary." - Vince Lombardi
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