Posted To: MBS Commentary
Last week was unpleasant in the mortgage world, to say the least. Rates suffered a double whammy due to the surprise 50bp LLPA on refis and the trend breakout in the broader bond market. Ideally, lenders will have priced in the worst of the LLPA drama last week, but it's still a bit too soon to know how it's going to play out. Don't be surprised to see a few lenders continuing to set rates out of sync with MBS movement for a few more days. As far as broader bond market trends go, the pros and cons are more clearly defined and easier to see. Last week was bad, but not terrible . Some would argue that it was actually an ideal technical correction for stubbornly strong momentum seen during most of the past 2 months. As of Friday, that momentum finally looked like it would try to reverse…(read more)
Source: Mortgage News Daily
