Mid Day update
MBS are up +8/32 (FNMA 30-yr 3.0 at 102.15), around 7/32 above morning levels, and near the high for the day. Favorable repricing was seen. Despite stronger than expected housing data (see below), MBS moved higher again today. Demand was close to average for the 2-yr Treasury auction. The Dow is down 100 points. Tomorrow, Durable Orders will be released at 8:30 et. The results from the 5-yr Treasury auction will come out around 1:00 et.
February New Home Sales increased 8% from January to an annual rate of 539K, far above the consensus of 465K, and the highest level since February 2008. They were 25% higher than one year ago.