Month: August 2018

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MBS RECAP: New Tariff News Helps Bonds Dig Into Range

Category : Mortgage News Daily

Posted To: MBS CommentaryWhile we can’t really avoid talking about “the range” recently (roughly 2.80 to 2.90 in terms of 10yr Treasury yields), we can at least talk about it in a slightly more enjoyable way today. As of yesterday afternoon, yields were essentially challenging the upper end of the range. Any weakness today would have meant a potential confirmation of a range breakout (which generally results in more momentum in the same direction). The day started to go well for bonds right from the overnight session with modest global market weakness and risk aversion prompting similarly modest gains in safe-haven bond markets. The PCE data helped too, albeit slightly. Traders were fearing a stronger-than-expected result, so when inflation was reported right in line with expectations, bonds got another…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Mortgage Rates: If You Like Boring, You’re in Luck!

Category : Mortgage News Daily

Posted To: Mortgage Rate WatchMortgage rates didn’t move at all, again today. There really hasn’t been any meaningful movement for more than 3 weeks. The same thing happened from late June through mid July. And if we broaden our definition of “sideways” just a bit, we can legitimately fit most of 2018 into the same conversation. Just about the only thing that’s interesting about recent rate movement is that it continues to keep us generally closer to the highest levels in 7 years. Part of the current problem is simply the time of year. It’s not uncommon to see underlying bond markets consolidate at some point in the summertime months before breaking higher or lower in September. The difference this time around is that part about 2018 being broadly sideways for the entire year. That would seem to suggest indecision among…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


MBS Day Ahead: It Would Take Some Convincing to Break The Range

Category : Mortgage News Daily

Posted To: MBS CommentaryRemember the flat, boring range between 2.8 and 2.9? Or perhaps you prefer the slightly stricter version between 2.82 and 2.88? That’s the range that dominated our conversation and bond trading beginning in late June. The range went on vacation through early August, but has been back in town for more than 3 weeks now . Any strength in bonds today would easily keep the range intact. As the chart suggests, the bounce in longer-term momentum (slow stochastics) is bad news, but it requires some qualification. While it’s true that bonds tend to have more red days than green days after such bounces, the first 3 days of this week count, and sometimes the bounces are shallow enough that we wouldn’t necessarily need to see too much more weakness before the next reversal in momentum. Beyond…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


DTC Product; CEO Events; Hedging Firms Making Moves

Category : Mortgage News Daily

Posted To: Pipeline PressIs there a place for age or sex discrimination in mortgage banking? Of course not. So the court case earlier this month involving Sacramento’s Summit Funding and Rick Ruby (LOs know him from CORE) is being followed closely by the industry. At this point Summit and “profit participant” Rick Ruby lost a $1.6 million binding arbitration case. In other legal news, even as states and local governments are passing so-called “ban-the-box” laws, the Eighth Circuit has upheld a Wells Fargo employment policy that allowed the bank to fire employees, or not consider job applicants, based on criminal records. Erin Mulvaney reports that the court ruled against 10 African-American and Latinos who alleged discriminatory employment practices. And the courts are involved in the…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Freddie Mac’s Portfolio up 3.2 Percent for Year

Category : Mortgage News Daily

Posted To: MND NewsWireFreddie Mac reported today that its total mortgage portfolio increased at an annualized rate of 3.5 percent in July. The portfolio balance at the end of the period was $2.136 trillion compared to $2.130 trillion at the end of June and $2.044 trillion at the end of July 2017. Purchases and Issuances totaled $32,721 billion, bringing the 2018 year-to-date total to $215.891 billion, Sales were ($1.028) billion and Liquidations ($25.413) billion in July and totaled ($12.873) and ($164.198) billion respectively so far this year. The annualized growth rate for 2018 through the end of July was 3.2 percent and the annualized liquidations rate was (13.4) percent. Single-family refinance-loan purchase and guarantee volume was $6.4 billion in July compared to $7.3 billion in June. The refinance share…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Freddie Mac Updates Selling Guide, Introduces New Product

Category : Mortgage News Daily

Posted To: MND NewsWireFreddie Mac will be consolidating two of its mortgage products into a single offering effective October 29, 2018. The company announced this and other changes to its Selling Guide in a Bulletin on Wednesday. The affected products are Freddie Mac’s Home Possible and Home Possible Advantage Mortgages. The company said it is making the change in response to seller feedback and to provide those sellers with improved operational efficiencies and ease of use. The new product will offer the same loan-to-value (LTV) and total LTV (TLTV) ratios as in the Home Possible Advantage program although certain requirements and loan attributes will continue to vary depending on those ratios. The new product, to be called Home Possible Mortgages , will permit non-owner occupant borrowers on loans secured by one…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


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MBS RECAP: Bonds Remain Rangebound After Morning Weakness

Category : Mortgage News Daily

Posted To: MBS CommentaryToday ended up being the most uneventful day of the week in terms of outright volatility. In other words, bonds didn’t cover as much ground as they did over the past 2 days. That said, there was still a bit of excitement . After being unchanged in the overnight session, yields began to rise toward the top of the prevailing range. Blame a combination of European bond market weakness and domestic stock market strength. Stronger GDP data didn’t help, but it’s debatable whether or not it hurt. If bonds were interested in data, they likely wouldn’t have continued selling off after the weaker Pending Home Sales report–especially given the Fed’s mention of the housing market last week. All it took to turn the ship around was for European markets to close. After that, the healing…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Sun Belt has Lock on “Young” Housing

Category : Mortgage News Daily

Posted To: MND NewsWireEarlier this month the National Association of Home Builders’ (NAHB’s) Eye on Housing blog featured a story on America’s aging housing stock. NAHB analyst Na Zhao used 2016 American Community Survey (ACS) data to put the median age of owner-occupied homes at 37 years compared to a median age of 31 years in 2005. The aging trend had picked up speed during the Great Recession. Zhao says the age of the housing stock is an important indicator for home remodeling as older houses are less energy efficient than new construction and ultimately will require remodeling and renovation lest they fall into disrepair and out of the housing inventory. Now the author takes another and more granular look at the issue and finds noticeable variations in the median age of housing across the states. New York has…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Mortgage Rates Edge Higher Again

Category : Mortgage News Daily

Posted To: Mortgage Rate WatchMortgage rates were just slightly higher again today, keeping them in line with the highest levels in about 3 weeks. The same caveat applies: we’re talking about “effective rates” (which factor in upfront lender costs) as opposed to “note rates” (the actual interest rate that most of us have in mind when discussing mortgage rates). In other words, most prospective borrowers are seeing the same old rate on any given day over the past 3 weeks, but the overall cost of financing, on average, would be highest today. Loan Originator Perspective Bonds lost ground for a third straight day today, as month end demand failed to provide support. Looks like our little rate dip has passed. I am locking new applications closing within 45 days for all but the most risk-tolerant clients. – Ted Rood, Senior…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


NAR Sees Overheated Housing Market Starting to Cool

Category : Mortgage News Daily

Posted To: MND NewsWireExpectations weren’t particularly high for a solid July report on home purchase contracts, but today’s report from the National Association of Realtors® (NAR) didn’t meet even those . NAR’s Pending Home Sales Index (PHSI) came in at 106.2, down from an upwardly revised (from 106.9) 107.0 in June, a decline of 0.7 percent. The decrease put the PHSI 2.3 percent behind its level in July 2017. It was the seventh straight month the NAR’s leading indicator for existing home sales has trailed on an annual basis. It would have been difficult for the results to fall outside of the wide range of estimates from analysts polled by Econoday. They ranged from a loss of 1.1 percent to a positive 1.0 percent change. However, the July index was well off the consensus which was for the index to remain unchanged…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


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