NJ Adopts Uniform State Test; The Supreme Court & Fair Lending; New Non-Agency Security?

Posted To: Pipeline Press

I am in Colorado this week for the Richey May President & CEO Roundtable meeting, but here is some news regarding Ohio. When we think “The Federal Reserve”, we usually think of the Board of Governors and Ben Bernanke, not any one of the 12 reserve banks who make up the system. I bring this up due to a small white paper written by the Cleveland Fed entitled “Policy Considerations for Improving Ohio’s Housing Markets “. In the report, they outline some of the main findings from the Federal Reserve Bank of Cleveland’s years of research …read more

Mixed Housing Starts Data Pulled Higher by Surge in Multi-Family

Posted To: MND NewsWire

Residential construction starts rose in May while permitting for new construction was down slightly the U.S. Census Bureau and the Department of Housing and Urban Development said today. Privately-owned housing starts were at a seasonally adjusted annual rate of 914,000, a 6.8 percent increase from April’s revised estimate of 856,000. Starts were 28.6 percent higher than a year ago when the rate was 711,000 units. The revision to the April housing starts number raised the estimate from 853,000 units. Single-family housing starts were at a rate of 599,000, up 0.3 percent from the April estimate of …read more

The Day Ahead: Some Data, but FOMC Wednesday Looms Large

Posted To: MBS Commentary

It would be nigh on impossible for anything that happens today to serve as a mere appetizer to Wednesday’s main course: the FOMC Announcement, Economic Projections and Bernanke Press Conference. As we saw on Monday, that doesn’t mean that markets are immune from movement. In the grand scheme, however, not only were Monday’s moves rather small, but the whole fixed income universe has been asymptotically approaching some sort of shaky equilibrium for several weeks now in preparation. Here’s the MBS version: The implication is that Wednesday could easily break the upper or lower line, whereas today …read more

MBS RECAP: Light Volume Stability Falls Victim to Headlines

Posted To: MBS Commentary

MBS Live : MBS Afternoon Market Summary Most of this afternoon’s drama is extensively relayed in the catalogue of alerts and updates below. To recap that recap, an article from the Financial Times came out at 2pm, and essentially served as a dueling banjo to Hilsenrath’s article on Thursday. Whereas Thursday’s piece generally suggested “don’t freak out” about Fed tapering, today’s piece was more in the vein of “no, you should actually freak out a little bit.” In neither case was any new, significant suggestion made about what’s likely to happen on Wednesday, and it’s a …read more

Mortgage Rates Slightly Higher; Anticipation Building for Fed

Posted To: Mortgage Rate Watch

Mortgage rates rose in the afternoon , after beginning the day unchanged to slightly higher compared to Friday afternoon. That means lenders recalled their initial rate sheets from this morning and put out new sheets with higher costs. This is typically a result of market volatility and today is no exception as market participants are anxious for Wenesday’s FOMC Announcement and press conference. The revised rates in the afternoon are in line with Thursday’s offerings, suggesting best-execution rates between 4.125% and 4.0% Considering that Friday’s rates were the best of the month, today’s deterioration still …read more

MBS MID-DAY: Eerily Calm Start to FOMC Week

Posted To: MBS Commentary

MBS Live : MBS Morning Market Summary So far this week, we’re being treated to the “all things being equal” approach to Wednesday’s tremendously important FOMC Events. In the few days leading up to any major market mover, it’s fair to expect lighter volume, narrower trading ranges, and reasonably sideways price movement, “all things being equal.” The qualifying phrase is added because all things aren’t necessarily always equal in these cases (as we’ve seen several times in the run up to NFP data where Wednesday and Thursday cause big lead-offs). It has been the case today …read more

Builder Confidence Soars. Sharpest Rise Since 2002

Posted To: MND NewsWire

Low inventories and increasing traffic have unleashed the confidence of new new home builders the National Association of Home Builders (NAHB) said today. Its Housing Market Index (HMI), issued in conjunction with Wells Fargo Bank, jumped eight points in June to a reading of 52. A score of 50 is significant to the Index as it indicates more builders view sales conditions as good than view it as poor. The eight-point jump in the index was the biggest one-month gain since August and September of 2002 , when the HMI recorded a similar increase of eight …read more

Eminent Domain; More on Mini Correspondent; Deducting Mortgage Interest; The Popularity of 15-yr Refis

Posted To: Pipeline Press

The United States does not have the only government that is knee-deep in controlling lending and real estate. Beijing, which already has China’s strictest real estate curbs, is being forced to take additional steps to contain surging home prices as demands for record-high down payments fail to deter buyers . The city has enforced citywide price caps since March by withholding presale permits for any new project asking selling prices authorities deem too high. Local officials will need further tightening as they struggle to meet this year’s target of keeping prices unchanged from last year. The …read more

Friday Borrower Do’s and Don’ts

Posted To: Community Commentary

Here’s another weekly installment of Do’s and Don’t’s for prospective borrowers embarking on, or already engaged in the home mortgage process. In case it needs to be said, the “don’t’s” are strictly for comedy (though most are based on real world examples of things that will kill or greatly delay the mortgage process). The “do’s,” on the other hand, are potentially valuable nuggets of information that may greatly benefit your mortgage experience. In fact, most of them can end up making a difference in the success or failure of a loan, and at the very least, …read more

MBS End Week at Best Closing Levels; No Comfort Until We Hear from FOMC

Posted To: MBS Commentary

MBS Live : MBS Afternoon Market Summary The sense of anxiety and uncertainty is palpable. Almost in perfect unison, when the lunch bell rang, traders in equities and bond markets alike began taking chips off the table ahead of next week’s seemingly epic FOMC events. Before that, MBS had reached its best levels of the week, and even after the slide in the PM hours, managed to close at the best end-of-day levels of the week. 10yr yields didn’t make any tremendous heady in the intermediate range, but they did manage to confirm the break below …read more