More of a heads-up than a full-blown alert due to timing of the losses...
MBS are down near a quarter point on the day and nearly as much from the AM highs. That said, those highs happened first thing in the morning, well before most lenders were out with rates. In the worst case scenario, a lender who priced at the mid-morning highs is only seeing an eighth of a point of weakness.
Considering that we've been trending gradually weaker all morning, even the jumpy lenders would likely need to see another 1-2 ticks (0.03-0.06) of weakness before considering negative reprices.
