Stock Lever Helps Rates Break Resistance and Extend Rally. Reprices Reported

Posted To: MBS Commentary

Looks like the market is favoring the flight to safety side of the "conflicting view" story I described in the OPEN . The stock lever has engaged in an originator friendly fashion and lenders are due to reprice for the better as a result. The Greek saga has evolved from a game of pin the tail on the donkey to….??? I'm not sure how to describe it anymore. Thank an S&P downgrade of Greece and Portugal for better mortgage rates. READ MORE The chart below says it all…stock futures lower, TSY futures higher. The S&P is now -1.59% at 1192. The Consumer Discretionary index is leading the way lower. That is odd given the fact that Consumer Confidence printed at 57.9 vs. the prior read of 53.5. The expectations index increased to 77.4 in April, the strongest showing since October…(read more)

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