MBS RECAP: Positive Reprices as Month-End Saves Afternoon

Posted To: MBS Commentary

Month-end to the rescue! We've been talking about it all week and now the phenomenon (month-end buying) is a major contributor in bond markets' ability to stem losses and bounce back today. Some of the weakness was in place from the overnight session while the rest followed this morning's economic data–chiefly Chicago PMI. After that, a steady bid carried both Treasuries and MBS most of the way back to unchanged levels. Quite a few lenders repriced positively. That leaves us somewhere between the mid-point and the stronger side of the recent range heading into next week's …read more

Mortgage Rates Lose Some Ground After Stronger Data

Posted To: Mortgage Rate Watch

Mortgage rates rose slightly today ending a strong 3-day move lower. The weakness followed this morning’s economic data, but the bond markets that indirectly influence rates were already losing ground during overnight trading. The implication is that the additional weakness brought about by the economic data was marginal, and the overall increase in rates has been livable. In most cases, the only effects will be on the closing costs for the same rates quoted yesterday. For the best-qualified borrowers seeking a conforming 30yr fixed, 4.375% remains today’s most-prevalently quoted rate ( best-execution ). It’s tempting …read more

MBS MID-DAY: Weaker After Econ Data but Still in The Game

Posted To: MBS Commentary

Bond markets went into the locker room after this morning's econ data fairly discouraged, but not enough to give up. That was less obviously the case between 10 and 11am when MBS were over a quarter of a point weaker on the day and 10yr yields were up nearly 6bps. Both bounced modestly in the other direction after that. The bounce is probably attributable to the droning support from month-end tradeflows seen so far this week. That would go a long way toward explaining bond markets' ability to stem losses even as stocks continue to new …read more

Realtor Lawsuit; Ocwen in the Hotseat – Who is William Erby? Bank Mergers Continue, Shrinking Numbers

Posted To: Pipeline Press

It has been quite a week, visiting mortgage and banking folks in California, Kansas, and now Texas. There are a lot of good, experienced personnel out there, and a lot of optimists – aside from all the Encompass & Mavent users out there gasping during Ellie Mae’s temporary outage yesterday. And there is indeed reason for optimism in certain sectors. For example, one of every eight American households (nearly 14 million in all) rents a single-family home, and there will always be borrowers refinancing for some reason. But Wednesday we learned that the Mortgage Bankers Association …read more

MBS Day Ahead: MBS Try to Break 11 Month Dry Spell

Posted To: MBS Commentary

With the past five sessions having been green for MBS, today affords them the opportunity to do something they haven't done since the end of March 2013. That was the last time production coupon MBS (the stuff that's most relevant to lender rate sheets at the time) saw 6 consecutive 'up' days, though they came very close just last month. If there's a good day to attempt such things, today may be it, considering that it's month-end. That's important because month-end isn't just another time on the calendar for bond markets, but an actual cyclical motivation …read more

Mortgage Rates Continue to New 2-Week Lows

Posted To: Mortgage Rate Watch

Mortgage rates gained even more ground today, and are now getting close to early February’s levels, which were the lowest since November. Much of the positivity may owe itself to temporary factors including geopolitical turmoil and month-end trading dynamics in the bond markets that most directly inform mortgage rates. After moving down to 4.375% yesterday, today’s most-prevalently quoted rate for the best scenarios ( best-execution ) remains unchanged, but closing costs will be slightly lower. When adjusted for changes in closing cost, rates would be down 0.03% on average. Freddie Mac’s Primary Mortgage Market Survey …read more

MBS RECAP: Coasting Out Near Best Levels Since November

Posted To: MBS Commentary

Fannie 4.0s are up 5 ticks at 104-28. That's 9 ticks lower than the early February highs, but keep in mind those highs came just before the roll, which was about 10 ticks. So in a magical world where there's no monthly MBS settlement, we would be closer to 2-3 ticks off those highs (as opposed to 9). The past 5 sessions have all been positive for MBS, though yesterday and today are the ones that have really broken out of the recent sideways trend. That could have as much to do with what seems to …read more

Builder Confidence in Multifamily Market Slips even as Vacancies Decline

Posted To: MND NewsWire

Builders and developers engaged in the multi-family market grew a little less confident in that market during the fourth quarter of last year. The Multifamily Production Index (MPI) developed by the National Association of Home Builders (NAHB) dropped four points from its third quarter level to 50. A second NAHB index, the Multifamily Vacancy Index (MVI), improved slightly for the quarter. The MPI provides a composite measure of builder and developer sentiment about current conditions in three elements of the apartment and condominium market; construction of low-rent units, market-rate rental units and “for-sale” units, or condominiums. …read more

Investors Losing Interest in Housing, Despite Rise in Distressed Sales Share

Posted To: MND NewsWire

Institutional investors appear to be losing interest in purchasing foreclosed properties for rentals in the face of rising property prices and interest rates and increased competition from homebuyers. According to RealtyTrac’s January 2014 U.S. Residential and Foreclosure Sales Report, the share of home sales tied to institutional investors – entities that purchase ten or more properties in a calendar year – dropped to 5.2 percent in January, down from 7.9 percent in December and 8.2 percent in January 2013. The January number was a 22 month low . Daren Blomquist, a RealtyTrac vice president said, “Many …read more