Market Update 7/13/2016
MBS are up +5/32 (FNMA 30-yr 3.0 at 103.25), around 2/32 higher than yesterday at this time. Unfavorable repricing took place yesterday.
This morning, June Import Prices rose 0.2%, below the consensus for an increase of 0.5%. The Dow is down 10 points. The results from the 10-yr Treasury auction will come out around 1:00 et. The Fed’s Beige Book will come out at 2:00 et.
The monthly rollover took place overnight for FNMA and FHLMC 30-yr securities. The current coupon switched from the July to the August contract. If you are tracking daily MBS price movements, August MBS prices reflected a drop of about -7/32 from July. 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.