MBS are up +1/32 (FNMA 30-yr 3.0 at 102.29), around 1/32 lower than yesterday at this time. First unfavorable and later favorable repricing was seen yesterday.
The release of the first reading for third quarter Gross Domestic Product (GDP), the broadest measure of economic activity, caused some volatility for MBS this morning but had little net effect. GDP grew by 2.9% during the third quarter, above the consensus of 2.5%, and up from 1.4% during the second quarter. Strength was seen in exports and inventory levels. Consumer spending grew at a slower pace than in the second quarter. The Dow is up 50 points. Consumer Sentiment will be released at 10:00 et.