Fannie 3.0 MBS just hit 104-21, which is only an eighth of a point (4 ticks) off Monday’s close. Even though this isn’t overly suggestive of positive reprices based on prevailing trading levels around this morning’s rate sheet time, the general stability and positivity may sufficient for one or two lenders to offer the “stability reprice” that we sometimes see in these situations. This becomes more likely the longer current levels are held or improved upon with 104-23 being a likely target for more widespread reprices.
Bottom line, no guarantees of positive reprices, but things are moving in the right direction. In other markets, 10yr yields have fallen to 1.8283 from highs of 1.86 and SPs are off roughly 7 points from their highs of the morning.