This Week's Mortgage Market UpdateJan 23 2013
Mortgages are back on track after 6 consecutive days of fading versus interest rate benchmarks. Current coupons are 5 better on the day, with Fannie 3s up to 104-11+ from 103-29 last Thursday. Today’s rally comes on the heels of Invesco’s announcement that it will tap the equity market and sell 15 million shares for additional acquisitions of resi and commercial MBS. That flipped fast money investors like hedge funds into buy mode, and the result is what we saw today. These REIT “openings” come in waves, so my sense is we will see additional offerings from other REITS and a continued strong bid for MBS, which of course is still backed up by the Fed. Economic data gets more substantial tomorrow as we get Claims, Leading Indicators and other manufacturing numbers.