Today's Mortgage Market UpdateMar 20 2013
With over $3.5 billion in supply yesterday, mortgages got hit more times than a Cyprus ATM machine. It was steady action all day as the market contended with a series of tape bombs out of the Eurozone which included a plan to tax bank accounts in Cyprus to help pay for a bailout – that plan was unanimously rejected by Cyprus’s parliament. 10yrs ended the day up 14/32nds with mortgages lagging behind on heavy originator selling. Today, the Twitosphere is rampant with rumors of a bailout from everyone from Russian billionaires to Shaun T’s abs. In addition to the Eurozone, we also have the FOMC rate decision and concurrent statement to deal with today. Flows have been quiet ahead of that, with only the usual Fed buying right now. Mortgages have reversed course from yesterday and are outperforming our other benchmarks.