In what is being described as the lightest trading week of the year, mortgage rates are holding steady and spreads are widening to historic levels. The effects of U.S. Treasury Assistant Secretary Gary Gensler's remarks about regulation of the government-sponsored enterprises last week are still being felt in the market.

"Mortgage volatility remains low, averaging a little over four basis points a day, compared with 5.8 basis points a day implied from swaptions," said David Montano, director of mortgage research at Credit Suisse First Boston.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.