Market Update
MBS prices are down -4/32 (FNMA 30-yr 6.0 at 99.22), which is about 13/32 lower than yesterday at this time. Unfavorable repricing took place yesterday. The 30-yr fixed FNMA required net yield (60 day) is now at 6.59%, close to the highest level of the month. It has been a volatile morning, and early investors may have priced at a range of levels. The first reading for third quarter GDP showed a decline of -0.3%, which was a little better than the consensus of -0.5%. The economic slowdown seen this month will be reflected in the fourth quarter data. Weekly Jobless Claims were close to expectations at 479K. The Dow is up 200 points. No more economic data will be released today, but there will be Fed speakers and a big 5-yr Treasury auction. The government will be significantly increasing the supply of debt to pay for the rescue plans, so investors will be closely watching the auction results.
Courtesy of: Snyder Mortgage LLC, Diane Snyder (561) 491-9510