Following the March employment report - and continuing through most of Monday's trading session - mortgages were hit pretty hard on the rate backup with heavy originator selling, profit-taking and sidelined buyers. The widening, however, drew back investors beginning late Monday and continuing into Tuesday and Wednesday. Buyers were wide-ranging, and they included fast-money accounts, money managers, hedge funds, banks, dealers and servicers. Early-week flows were focused both up and down the coupon stack. However, by mid-week, flows were more down in coupon. Originator selling, meanwhile, averaged around $2 billion per day.
Refinancing activity falls, purchases rise