Category: Mortgage News Daily

Posted To: MBS CommentaryIs today the day we break the “key technical level” at 2.82? Spoiler alert: you shouldn’t care and it doesn’t matter . I’m sorry if this is disillusioning or confusing. I spend a fair amount of time talking about technicals and various lines in the sand. It might leave you with the impression that some future move is more likely if we can just get past a certain hurdle. But technical levels aren’t as simple as “glass ceilings” for bond prices. They’re much more like mile markers that simply let us know where we’re at on any given journey. If you’d like to bask in more long-winded definitions and discussions, here they are: Basic Concepts of technical analysis Pivot Points, Key Levels, Floors, Ceilings, Etc. Trust The Technicals? The bottom line…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: MND NewsWireHome prices for purchases financed by Fannie Mae and Freddie Mac appreciated at an 0.2 percent rate during June, and the estimate for May was increased from the 0.2 percent originally reported to 0.4 percent. It also appears that April’s gain, which was revised last month from 0.1 percent to 0.2 percent has been revised again, up another 0.1 point. The Federal Housing Finance Agency, regulator and conservator for the GSEs, reported that home prices rose 6.5 percent compared to their Housing Price Index (HPI) for June 2017. Prices were up month-over-month in seven of the nine census regions , ranging from 0.1 percent in the West South Central division to 0.7 percent in the Mountain division. Those two states also posted the smallest and the largest year-over-year changes, 5.0 and 9.5 percent…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: Pipeline PressNow that we’re more than halfway through the third quarter, how’s it shaping up for lenders? Yes, the industry has reduced its ranks, therefore cutting costs. In terms of production, with $1.6 trillion expected this year, we are seeing fewer refis (but they’re still out there, and account for 39% of apps) and more purchase biz. But the Mortgage Bankers Association trimmed its third-quarter outlook for total business slightly, and now is expected to hit $443 billion this quarter, $370 billion in the 4th quarter, and $328 billion in the 1st quarter of 2019. The trend is not our friend. Upcoming Events and Training Do you need to accelerate your digital mortgage journey? Register for an exclusive webinar presented by the CMBA Mortgage Technology & Marketing on August 22nd…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: MBS CommentaryNews regarding Cohen’s plea deal came out right as futures markets were closing yesterday. There were only 15-20 minutes for a reaction, and we wouldn’t normally expect to see a full-fledged reaction at that time of day anyway–especially during this time of year. That left some uncertainty as to how today would begin, but bonds ended up being right in line with yesterday’s post-Cohen levels a few minutes into domestic trading. Volumes have been far from extreme, suggesting markets aren’t incredibly interested in this drama until and unless it officially involves the president. Still, they’re interested enough to help push bonds right up to the edge of their best levels of the summer . The next major milestone would be a break below 2.82% in 10yr yields. If that ends up…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: MND NewsWireExisting home sales posted their fourth straight loss in July and have dropped to their slowest pace since February 2016. The National Association of Realtors® (NAR) said sales of previously owned single-family houses, townhouses, condos, and cooperative apartments were at a seasonally adjusted annual rate of 5.34 million units last month. This is a 0.7 percent decline from the 5.38 million units reported for June and puts sales behind those of a year earlier for the fifth straight month, this time by 1.5 percent. Analysts keep anticipating a rebound for existing sales and continue to overshoot the mark. Those polled by Econoday expected July sales to be in the range of 5.39 to 5.51 million with a consensus of 5.42 million. Single-family home sales declined by 0.2 percent to a seasonally…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: MND NewsWireThe Federal Housing Finance Agency (FHFA) has pulled the plug on pilot programs run by both Fannie Mae and Freddie Mac (the GSEs) to finance institutional investment in single-family home rentals. The programs began in February 2017 with a $1 billion loan from Fannie Mae to the Blackstone Group. The loan was originated by Wells Fargo with a Fannie Mae guarantee and secured by some of the 48,000 single-family homes Blackstone’s Invitation Homes subsidiary had purchased during the recession, often from portfolios of lender-owned real estate, and turned into rentals. At the time, the Urban Institute wrote that the transaction “marks the first time a government-sponsored enterprise has facilitated financing for a large institutional operator of single-family rental properties,” and Fannie Mae pronounced…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: Mortgage Rate WatchMortgage rates haven’t really moved for 9 straight business days. Some lenders have seen microscopic improvements during that time, but the average lender is still quoting the same rates and fees seen on August 13th. The underlying bond market is part of the problem. Bonds–which dictate rates–haven’t been too interested in responding to conventional inputs. The bonds that underlie mortgages are especially guilty (compared to, say, US Treasuries which are more willing to respond to news and events at the moment). That doesn’t mean nothing can happen that would have an effect, simply that the stuff that has happened hasn’t been enough to move the needle. When market participants return in full force in mid-September, this seasonal pattern typically changes. It could even happen sooner, but…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: MBS CommentaryToday’s gains are primarily a factor of the bond market’s response to yesterday’s Cohen headlines (plea deal regarding campaign finance violations). Bonds aren’t too flustered about the headlines, but a few traders sought safe havens due to the increased odds that the president will eventually be implicated by the underlying investigation. 10yr yields were pushing their best levels in months just before the 9:30am NYSE open. After that, stocks took charge, telling bonds not to worry about those political headlines and to calmly back away from a range breakout. Bonds complied, but reserved the right to react to the afternoon’s FOMC Minutes. The Minutes were almost completely uneventful, with most of the bullet points well-assumed by financial markets. If there was any detectable…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: MND NewsWireLast week’s mortgage application activity was the best since early July as interest rates for most products drifted lower for the second week. The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, rose 4.2 percent on a seasonally adjusted basis during the week ended August 17, the first positive reading in six weeks. On an unadjusted basis, the Index gained 3 percent compared with the previous week. Most of the increase came from a boomlet in refinancing. The Refinance Index was up 6 percent from the previous week and the share of applications that were for refinancing increased from 37.6 percent the previous week to 38.7 percent. The seasonally adjusted Purchase Index rose by 3 percent and the unadjusted version increased 1 percent…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: MND NewsWireThe Treasury Department has recommended some sweeping changes for consumer financial services including some directly impacting the mortgage industry . A new report recognizes the growing importance of non-depository institutions in the mortgage system, attributing it in part to various factors that have raised the cost of doing business such as the False Claims Act enforcement and the costs of default mortgage servicing. The report also acknowledges that many among the growing ranks of non-bank mortgage originators have been early adopters of technology that has speeded up the mortgage lending process. As indicated by the title of report, Nonbank Financials, Fintech, and Innovation, many of its recommendations are focused on the area of technology. The report notes that financial and digital…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.