Homebuilders Waiting to See Impact of NLRB Ruling

Posted To: MND NewsWire

A ruling last week from the National Labor Relations Board (NLRB) has sent many companies who rely on contract labor into a bit of a panic . While there is one school of thought that says the ruling may impact homebuilding, it is not clear that it would affect that traditional subcontractor relationship. The ruling, the first of two that will probably come from the board, concerns Browning-Ferris Industries, a Milpitas, California recycling company. Browning-Ferris uses contract workers from a temporary staffing agency called Leadpoint. The Teamsters Union tried to organize Leadpoint’s employees but wanted the …read more

MBS RECAP: Widespread Negative Reprices as Bonds End Month Weaker

Posted To: MBS Commentary

Treasuries went out the 'in' door for the month of August, with today's 3pm levels matching the opening levels from August 3rd (1st trading day of the month). MBS briefly traded near their August 3rd levels, but ended in noticeably weaker shape (MBS have been slowly but steadily underperforming Treasuries since QE3). By the end of the day, most lenders had repriced at least once. Data was inconsequential this morning, as was most everything else for bond markets apart from month-end tradeflows. That was a benefit at first, but a significant detractor by the end of …read more

Mortgage Rates Rise; Volatility Builds Throughout Week

Posted To: Mortgage Rate Watch

Mortgage rates moved moderately higher today as bond traders adjusted their holdings for the end of the month. Mortgage rates are dictated by trading levels of mortgage-backed securities (which in turn, tend to move in step with US Treasuries, generally speaking). Many traders are tasked with making certain trades by the end of the month. Sometimes that has a noticeable effect on how rates move, and today was one of those days. Unfortunately, it wasn’t in a friendly direction. The day began with promise, however. In fact, many lenders were in better shape this morning …read more

CFPB news; Hispanic Influence Growing; Care and Training of Millennials; Rents are LOs Friend

Posted To: Pipeline Press

Darned if I know how we’re at the end of August already, with kids are heading back to school and the NFL all over sports programs. One thing that August had was a ruling in the federal bankruptcy court in the Royal Bank of Canada versus Thornburg Mortgage case: RBC Capital Markets LLC has to pony up $45 million in damages for undervaluing assets it seized from Thornburg. And tongues are wagging about the settlement between the SEC and two units of Citigroup : no one at the bank was held accountable for behavior that caused …read more

MBS Day Ahead: Bonds Continue Seeking Same Middle Ground as Important NFP Approaches

Posted To: MBS Commentary

Amid last week's glut of Fed speeches surrounding the Jackson Hole symposium, Fed Vice Chair Fischer specifically called out “the next two weeks of data” as having a bearing on the Fed's potential September rate hike. Incidentally, the first of those two weeks contains some of the most traditionally important data, including both ISM reports, ADP Employment, and the big daddy: NFP on Friday . Whether or not these reports ultimately sway the Fed's decision remains to be seen, but after Fischer's comments, markets are more on-guard for that than they otherwise might be. Somewhat conveniently, …read more

MBS RECAP: Battle of Fed Speakers Results in Firmer Rate Hike Hints

Posted To: MBS Commentary

I was writing reprice alerts and chatting with the MBS Live community during the time that I'd normally be writing the Mid-Day commentary. By the time I wrote it, everything interesting that was going to happen today had already happened! (This happens from time to time.) As such, your best bet for a recap of the entire day is to get the details from the Mid-Day commentary ( HERE ). For those who don't click links, here's another run-down: Fed speakers were the most prevalent market movers today as the Jackson Hole symposium continued (a big …read more

Mortgage Rates Varied by Lender Thanks to Volatility

Posted To: Mortgage Rate Watch

Mortgage rates didn’t move much today. Depending on the lender, effective rates were either slightly higher or lower vs yesterday, with the average lender being just microscopically lower in rate. Keep in mind that the improvement would only be detectable in the form of lower closing costs, if at all. In most any case, the actual contract rate would be the same as yesterday. As such the losing streak (of higher rates) over the previous 3 days is now essentially over. This doesn’t mean rates can’t rise any more from here, just that they’d need …read more

Realtor “Do’s and Don’ts”

Posted To: Community Commentary

We’ve previously explored the “Do’s and Don’ts” for homebuyers, and uncovered some vital tips that can help or hinder the home buying process. In today’s special edition, we examine hints for Realtors, whose actions during purchases are just as critical. As always, the “Do’s” contain very real helpful points to avoid closing delays, while the “Don’ts” offer a good natured look at some real life situations that complicate or delay closings. Do: Make sure to communicate all contract amendments, including seller contributions, to the lender immediately. Don’t: Add $5000 in seller paid costs to the terms, …read more

MBS Day Ahead: Bond Markets Attempt to Confirm End to Correction

Posted To: MBS Commentary

After rallying steadily for more than a month and after seeing that rally accelerate quickly into Monday afternoon, Treasuries and MBS underwent 2.5 days of correction, bringing them back in line with the previous trend, or possibly worse. If they can manage to hold steady-to-stronger day-over-day levels, it will end up looking like the rally trend remains intact and was just quickly stretched to its positive and negative limits. Today's key data release is hit and miss in terms of moving markets recently. Personal Consumption is expected to rise 0.4 from 0.2 previously and Income is …read more

Mortgage Rate Losing Streak Loses Steam

Posted To: Mortgage Rate Watch

Mortgage rates were just barely higher today, greatly decreasing the momentum in a now 3-day losing streak. The timing of these movements is important as it relates to Freddie Mac’s widely disseminated mortgage rate report. Freddie’s weekly rate report is gospel, and indeed it’s very accurate given the limitations of its methodology. Sometimes those limitations come to the surface and create confusion. For instance, Freddie is reporting mortgage rates at the lowest levels since May. The catch is that Freddie’s data never includes Thursday or Friday rate sheets, and rarely captures Wednesday movement. That matters …read more