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Shocker: MBS Rally Into Fed And Fall Afterward
  Mortgage Market Update
Apr 23, 2020 11:38 AM ET
  • Jobless Claims
    • 4427k vs 4200k forecast
  • Continued Claims
    • 15.976m vs 16.476m forecast
  • Services PMI
    • 27.0 vs 31.5 forecast, 39.8 previously
  • Manufacturing PMI
    • 36.9 vs 38.0 forecast, 48.5 previously
  • New Home Sales
    • 627k vs 645k forecast, 741k previously

The Fed's first UMBS 30yr operation of the day was from 9:50am through 10:10am.  MBS rallied leading up to the operation and then rallied some more as it progressed.  When it concluded, however, prices began to fall.  This pattern has been reliable enough that it would be a surprise NOT to see it.

2.5 UMBS are still up an eighth on the day, but are 2-3 ticks (.06-.09) off the highs.  10yr yields are still basically unchanged, but at slightly lower yields now versus slightly higher yields earlier.  Stocks have flipped the switch into rally mode and are now up more than 1%  (S&P futures). 

MBS / Treasury Market Data

UMBS 5.5
98.72
+0.25
UMBS 6.0
100.39
+0.19
UMBS 6.5
101.81
+0.11
2 YR
4.7163
-0.0249
10 YR
4.3602
-0.0724
Pricing as of: 7/3 5:59PM EST
This Mortgage Market Update is provided in partnership with MBS Live and provided exclusively to MBS Live Subcribers.

Average Mortgage Rates

Rate Change Points
30 Yr. Fixed 7.08% -0.05 --
15 Yr. Fixed 6.45% -0.02 --
30 Yr. FHA 6.55% -0.05 --
30 Yr. Jumbo 7.25% -0.04 --
5/1 ARM 7.07% -0.03 --
Source: Mortgage News Daily
Rate Change Points
30 Yr. Fixed 7.03% +0.09 0.62
15 Yr. Fixed 6.56% +0.09 0.54
30 Yr. FHA 6.90% +0.11 0.95
30 Yr. Jumbo 7.11% -0.01 0.50
5/1 ARM 6.38% +0.11 0.54
Source: The Mortgage Bankers Association
Rate Change Points
30 Yr. Fixed 6.86% -0.01 0.00
15 Yr. Fixed 6.16% +0.03 0.00
Source: Freddie Mac
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Market Data

MBS Price Change
UMBS 5.5 98.72 +0.25
UMBS 6.0 100.39 +0.19
UMBS 6.5 101.81 +0.11
GNMA 5.5 99.32 +0.23
GNMA 6.0 100.53 +0.14
GNMA 6.5 101.46 +0.05
US Treasuries Yield Change
2 YR 4.716 -0.025
5 YR 4.325 -0.069
10 YR 4.360 -0.072
30 YR 4.530 -0.076
Pricing as of: 7/3 5:59PM EST

Recent Housing Data

Value Change
Mortgage Apps Jun 12 208.5 15.58%
Building Permits Mar 1 1.46M -3.95%
Housing Starts Mar 1 1.32M -13.15%
New Home Sales Mar 1 693K 4.68%
Pending Home Sales Feb 1 75.6 1.75%
Existing Home Sales Feb 1 3.97M -0.75%
Builder Confidence Mar 1 51 6.25%

Recent News