Lots of illogical reprices out there, and that will continue to be the case as lenders get caught up on huge pipelines of loans waiting to be locked from last week.  

Spreads between MBS and Treasuries blew out so much last week.  Spreads may have come in all on their own, albeit at a gradual pace, but with the Fed's MBS buying, it's pretty much a guarantee.  Lenders are banking on that and many offered aggressive improvements with initial rate sheets.

The result was "too many locks!" according to everyone at any bank that offered huge improvements this morning.

The only way to curtail inbound lock demand apart from closing shop is to jack up rates.  Lenders didn't really care what MBS were doing during that decision making process.  There was more than enough improvement to work with, even at the lows.   This is really almost all about supply and demand.

At the same time, other lender who were more conservative out of the gate have finally gotten around to repricing for the better.  So at any given time, reprice risk is going both ways and has almost nothing to do with MBS movement until further notice.