MBS Prices have declined into the afternoon, but gently so. From highs of 104-23, Fannie 3.0s have edged lower to 104-20, briefly hitting 104-19 before bouncing up slightly. This isn’t necessarily high drama on a day that’s only managed a 6 tick range, and a majority of lenders are at little to no risk of negative reprices.
Keep in mind, however, that it’s the day before NFP, and lock volumes can be heavy. More to the point, if you were planning on locking today, but holding out for potential price improvements, chances look increasingly slim that we’d see any. With price action like this, however, neither a positive or negative reprice could be ruled out completely.
Some lenders have been known to reprice for the worse for pipeline control or merely a negative/worrisome afternoon trend while others occasionally reprice positively simply because prices are holding their range. That said, there are only a few lenders that fall on either side of that coin.