Rate volatility could continue this week with major economic announcements set to shake up the market, an analyst has said.
MBS Authority senior bond analyst Bryan McNee has said originators should keep the ears to the ground for economic data due out this week which could see the run of MBS sell-offs continue. In today's Weekly MBS Wrap on MPA TV, McNee looks back at the previous week on the MBS market, and what originators can expect from the week ahead.
Positive economic news last week saw a massive sell-off of MBS, McNee said, which led to skyrocketing mortgage rates.
"Mortgage backed securities sold off a whopping 246bps. In fact, we had the highest rates of 2013 on Friday afternoon," McNee said.
This week could see further volatility on the market, McNee said, with the release of other important economic indicators.
"We don't get a real dose of data until Tuesday ... but the key is going to be the [Federal Open Market Committee] minutes on Wednesday," McNee said.
To check out MPA's inaugural Weekly MBS Wrap and find out how to stay ahead of the mortgage market curve, CLICK HERE