The Smart Team of NOVA® Home Loans

MBS Day Ahead: Hey! It Won't Be a Straight Line. OK?

Posted To: MBS Commentary

When your career is directly impacted by bond market trends, and when you watch those trends on a nitty gritty, intraday level, one of the most insidious pitfalls is to get too wrapped up in every little move. Traders and strategists are taking a broader view than most loan officers and other bond market stakeholders in the mortgage industry. As mortgage people susceptible to intraday reprices, our noses are pressed up against the trade screen while the generalists are leaning back in their chairs looking at multiple monitors. Does that makes sense? I can rephrase. If you're freaked out, flustered, upset, perturbed, worried, etc. about a few bps of weakness amidst a broader trend of strength, knock it off! Trends won't happen in straight lines… EVER! Every trader knows this and you…(read more)

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Source: Mortgage News Daily

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