Rollover - 22 basis points after yesterday's Close

October 12th, 2016

 

Rollover

Chuck Berry said Rollover Beethoven.  When the mortgage backed securities have a rollover this has no effect on rates, but it does make the chart look a little different.

What is going on with interest Rates? #wigowir

Below is the news when it happened and the market’s reaction.  For a full view of the day start at the bottom and work your way up. If want to know what just happened start at the top. All Times are Eastern Standard Time.  When the price of Mortgage Backed Securities (MBS) goes down rates go up, and when the price goes up rates come down.

8:58 AM- S&P futures near unchanged.

8:25 AM - The refi index -8%, purchase index -2.6% as mortgage rates edged higher to 3.68%.

The MBAs Market Composite Index, a measure of total mortgage application volume, -6% in the latest week.

U.S. dollar index 97.80, +0.11.

10-yr T Note yield edges higher to 1.79%. WTI oil $50.91/barrel, near unchanged. There are no economic reports due for release today.

The September FOMC minutes will be released at 2:00 p.m. ET. MBS edge lower due in part to the $44B in Treasury securities being offered today. $24B 3-yrs and $20B 10-yrs, results at 1:00 p.m. ET.

MBS had their Monthly Bond Rollover after the close of trading last night with the effect being -22bp for the Fannie Mae 30-yr 3% coupon.

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