MBS RECAP: Bond Markets Brace For Impact, But Able to Blast Off Instead

Posted To: MBS Commentary

Fannie 3.5 MBS are heading out the door nearly half a point better at 102-09. 10yr yields are down 6bps at 2.498. While they didn't quite make it to the 2.47 technical level, the move from 2.57 yesterday to 2.48 at today's lows is close enough for government work. The other option in the event of a sell-off was to move up to the 2.66 technical level. For a while this morning, it looked like that might be a risk . 10yr yields were as high as 2.5907 before NFP came out weaker than expected. Even …read more

Mortgage Rates Recover After Jobs Data

Posted To: Mortgage Rate Watch

Mortgage rates were able to recover some of the ground lost this week after the important Employment Situation Report showed slightly less job creation than expected. Had the report been stronger, rates could have easily continued the week’s strong move higher. As it stands, we’re settling down very close to Monday’s levels, which is a major victory based on the tenor of the past 3 days. The most prevalently-quoted conforming 30yr fixed rate remains at 4.25% , but 4.125% is much more viable than it was yesterday. Today’s victory is very important in that it …read more

Housing Market Implications of Adult Children Living With Parents

Posted To: MND NewsWire

Since the start of the housing crisis the experts have noted the tendency young adults to continue to live in their childhood homes . This they say is contributing to the diminished rate of household formation which is, in turn, lowering homeownership rates in the lower age cohorts with the ultimate effect of holding back the housing and construction recoveries. Even when young adults move out of their parents’ basement, as the saying goes, they tend to share housing with other young adults. The economists at CoreLogic have coined the name “the Renter Generation” as an …read more

MBS Day Ahead: Near-Term Bond Market Fate to be Decided by Jobs Report

Posted To: MBS Commentary

First off, anything can happen on NFP days, so feel free to skip the rest of this and buckle up for the ride if you're reading this before 8:30am ET. For those interested in some context for today's possibilities, here you go. It used to be a certainty that NFP would decide the bond market's fate, not only in the near term, but frequently for the entire month that followed. Recently though, not only have markets had some counterintuitive reactions to NFP (like the last one where bond markets made it almost all the way back …read more