Fannie 4.0 MBS are down an eighth of a point from this morning's highs. We shouldn't assume any lenders are using those highs as a baseline because they were short-lived and because the morning's previous levels were lower.
In fact, the opening lows were lower than current levels. This mitigates most--if not all--of the negative reprice risk that would normally be associated with an eighth point drop.
Long story short, bonds are weaker, but not weak enough for major reprice risk. The caveat is that it's the Wednesday before Thanksgiving, and it's not unheard of for lenders to be a bit jumpier than normal if we're losing ground.
