No place to hide in the market today.
Mortgage backs down 31/32’s, 10-year note down 1 and 7/8th points, and the Dow off 228. Traders refer to this kind of a day as ‘blood in the street.” Today, Mortgage Market Guide’s Barry Habib makes a great point about the Fed’s involvement in purchasing MBS and how it may do little to bring back the 4.50% note rate that many borrowers are lusting for.
Along with this, the Fed was indeed in the market today, buying mostly 5.50% coupon. This purchase has done nothing to help lower interest rates.
Let’s hope for a better day tomorrow.