Back to top

Market Commentary

Home
Market Commentary


Today's Market Commentary

Friday, February 8, 2013

Not much to report today as the economic calendar is light (Trade Balance -38.5B vs. -46B expected) and there wasn't much news overnight. The yield curve is slightly flatter and 10-year notes are about a tick higher vs. 3:00 PM closes. Despite the Rates Market being stable, MBS prices are continuing to underperform. FN 3% are underperforming duration hedges by 4 ticks as hedge fund, REIT, and Money Manager selling weigh on mortgage prices. As rates have backed up, production has shifted towards the 3.5 coupon and G2 3.5s have suffered particularly. The I/II 3.5 swap has moved all the way to 14 on the back of Money Manager buying in GN I and originator selling in IIs. The FED purchase data from last week showed purchases of only 700MM in G2 3.5 vs. over 4bln in G2 3. With Japan quiet, there aren't many investors adding G2s here and until the Fed steps up their 3.5 purchases and/or money managers move to buying G2 that swap will continue to suffer. Enjoy the weekend!


           








For more information, please call:

FHA Programs
VA Programs
USDA Rural Housing
HECM Reverse Mortgage
Conforming Products
FHA Multifamily, PowerSaver

GNMA Seller, Servicer, Master Servicer
Fannie Mae and Freddie Mac Direct Lender
Licensed throughout the U.S. and Puerto Rico
Privately Held Mortgage Bank for Over 32 Years
Excellent Underwriting / Funding Turn Times

Equal Housing Opportunity

This information is provided solely for informational use and is not intended as trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations.

This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice. Sun West Mortgage Company, Inc. (NMLS ID 3277) is licensed by the Department of Corporations as a California Finance Lender (License #603 0119) and is licensed by the Department of Real Estate (License #00793885). Refer to www.swmc.com to see where Sun West is a licensed lender. In all states, the principal licensed office of Sun West Mortgage Company, Inc. is 18303 Gridley Road in Cerritos, CA 90703; Phone: .

Market Commentary Bottom