Both agencies must still maintain a capital level that is 30% above the statutory minimum, although the OFHEO anticipates a gradual decrease as the GSEs complete the terms of their consent orders. As a result the OFHEO's willingness to lift the caps, FNMA 5s went from 17 ticks wider to the curve after the Fannie Mae news to over 20 ticks tighter following the OFHEO announcement. Mortgages soared as real and fast money investors piled back into the MBS market based on expectations that the GSEs will be able to help absorb the increased supply in 2008. At midday on Wednesday, mortgages were 15 to 16 ticks tighter to the curve in FNMA 5s and 5.5s and by nine and six ticks, respectively, in 6s and 6.5s. GNMA/FNMA swaps lagged as investors swarmed to conventional products. Prior to the unexpected the OFHEO announcement, mortgages were trading in their reactionary and "day trader" mode of late.