September 29th, 2014 3:11 PM by Dale DiGennaro
To kick off the week this Monday morning.....Mortgage Backed Securities (MBS) are holding steady and staying close to morning levels at around +6/32. Note that Pending Home Sales came in weaker than expected.
As they day progressed there was a bit of a change and although Mortgage Backed Securities are still up +3/32, it is 4/32 below some morning levels. Further declines were expected later today and could lead to unfavorable repricing, with some lenders making a change to the rates they published first thing this morning.
However at about 2:00pst, Mortgage Backed Securities are actually still up at +4/32 (FNMA 30-yr 3.5 at 102.10), around 2/32 below morning levels. Weakness in stocks boosted MBS today. The Dow is down 40 points, after being down around 175 points earlier in the session. Tomorrow, Chicago PMI and Consumer Confidence will be released.
On the home buying front.....August Pending Home Sales declined 1.0% from July, below the consensus for an increase of 1.0%, and they were 2% lower than one year ago. Pending Home Sales remain close to the highest level of the year.