Perhaps it would be better to say that Friday afternoon LACK of volume has kicked in as the recent hours have looked much like any other Friday PM. Since experiencing the steep adjustment into the 10am hour, everything has been relatively stable for production MBS with Fannie 3.0s riding a slightly positive trendline from the 103-28 lows to 104-07 currently. 10’s haven’t backed off their highs quite as much as we’d like but are currently at or under a moderately important pivot point around 1.86. Stocks are at their lowest levels since the cash open at 9:30.
Many lender’s rate sheets remained aggressive enough that we wouldn’t expect a positive reprice on the current level of stability, but we might not be that far off in other cases. If it were any other day but a Friday, we’d probably expect more, especially among lenders who released their first rate sheet after 10am Eastern. Bottom line, it’s possible, but we wouldn’t necessarily hold out for it. We’d also stay guarded against the “usual suspects” with respect to pipeline control reprices.