That 2014 prediction will depend on the Fed but bad employment data today essentially says rates aren't going anywhere soon. I could see mreits PPS moving back to their BV's. Doubtful you would see a premium given the looming taper but MTGE at $22-$23 is not a stretch IMO.
BV will rise as any mbs purchased this quarter will be in the money, yields will be higher and legacy portfolio will be flat. Add it up. No devaluation of inventory purchased before July 1 as rates moved back to July 1 level. The Boston Fed governor said we will not hit fed targets for unemployment, inflation or growth until 2016, We will move back to 2.5% or less and reit incomes will soar.