Some concerns remain in the MBS market that the strengthening economy will lead to a larger and more expedient uptick in interest rates. This poses big risks to mortgage investors and for the housing markets in general.

"The rapidity of some of the rate moves we've had recently has reinforced that concern," said Andrew Davidson, president of the Andrew Davidson & Co. Combined with this development, significant weakness in the economy is keeping interest rates where they are.

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.