Tuesday, March 10, 2009

Mortgage Market Commentary

Mortgage Market Commentary

Mortgage backed securities (MBS) prices are trading at the low of the day, FNMA 4.5% coupon 100.95bps, down 22bps. Unfavorable repricing is possible. The higher coupons (6% & 6.5%) are actually outperforming the lower coupons (4.0% & 4.5%). FNMA 6.5% coupon +6bps while the FNMA 4.0% coupon -31bps. 30yr fixed mortgage rates at 4.5% seem so far away now.

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