Market Update 10/13/2015
MBS are up +4/32 (FNMA 30-yr 3.5 at 104.07), around 3/32 lower than Friday at this time. Early investors may have priced at higher levels.
It has been a quiet morning. The Dow is down 10 points. No economic data will be released today.
The monthly rollover took place overnight for FNMA and FHLMC 30-yr securities. The current coupon switched from the October to the November contract. If you are tracking daily MBS price movements, November MBS prices reflected a drop of about -7/32 from October. This change is priced in over the course of the month, so the impact on mortgage rates on the day of the rollover is generally no greater than on any other day of the month.