MBS are up 9 bps in early trading. The government aims to increase small loans for housing, but cost remains a barrier. In weak markets like 2022, smaller loan originators perform better. Labor market dynamics are in focus as United Auto Workers negotiate with automakers; their demands could signal rising labor costs. Las Vegas hospitality workers also eye a potential strike. August mortgage volume dropped 26% YoY but rose 8% MoM, with a 30-year rate at 6.82%. Bond markets had a quiet week, except for a surge in corporate bonds and ISM Services data affecting rates. Next week’s CPI data is highly anticipated ahead of a key Fed meeting. MBS ended up 5 bps, stocks and 10-year Treasury yields remained flat.

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