It was a sluggish week in mortgages this past session. Spreads were weaker with 30-year Fannie Mae 5.5s widening nine basis points over the Wednesday-to-Wednesday period; 6s and 6.5s were one basis point and flat, respectively; and 7s moved out six basis points. Such was the story in Dwarfs, with 5s weaker by seven basis points, and 5.5s through 6.5s four, three, and two basis points cheaper, respectively.

Buyers were less active than in the previous week as volatility moved higher, and rolls got whacked. It might have been worse had originators been better sellers; however, supply was kept at average to below-average levels.

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