Posted To: MBS Commentary
It's an interesting morning in the bond market–at least for those of us who are interesting both in general rate momentum and nitty gritty MBS movement. The general momentum is fairly boring. 10yr yields, for instance, are simply trending higher in linear fashion after hitting surprisingly low yields on Wednesday afternoon. If there seems to be any extra urgency behind that sell-off, it's most easily explained by the obvious urgency behind the European sell-off. Meanwhile, MBS are apparently underperforming, but looks can be deceiving. Let's start by asking a question to the loan officers. On average, how long ago did your last refi client obtain the loan you're about to pay off? Chances are this number is nowhere close to 10 years (and at most times since covid, nowhere close…(read more)
Source: Mortgage News Daily
