Mortgage Backed Securities and Treasuries Tank

FNM 4.0 Tanks

FNM 4.0 Tanks

The Fannie Mae 4.0 Bond dropped over 200 ticks today in a major correction. All parties, banks, insurance, hedge funds ect. were selling in a big way.

The effect will be in mortgage rates on new origination rising .375 to .5 % to the 5% or so range for conforming loans with no loan level price adjustments.

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