October 23rd Mortgage Market Warp-up

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 significantly wider. In a volatile session, the Dow gained 170 points. Tomorrow, Existing Home Sales will be released at 8:30 et.

Freddie Mac reported that average mortgage rates fell in the week through October 23, with 30-yrs hitting 6.04% from 6.46% the prior week.