Over the Wednesday-to-Wednesday period, mortgage spreads were slightly weaker as investors moved to the sidelines on the high price levels and focused more on the long holiday weekend. The week saw 30-year Fannie Mae 5s moving out three basis points, while 5.5s weakened one basis point. Ginnie Maes performed slightly better on overseas support, widening just one basis point in 5% and 5.5% coupons. Meanwhile, 15s were mostly avoided despite lagging 30s and Street recommendations. As a result, spreads weakened three basis points.
Towards the end of last week, activity was picking up with increasing retail interest. Banks and money managers were the main supporters for the week. Interest was focused solely on the down-in-coupon into currents. Originator selling remains generally light, averaging about $2 billion per day.