MBS RECAP: Bonds End Month at Best Levels

Posted To: MBS Commentary

In day-over-day terms, the 1-2bps gain in 10yr yields and the 3-5 ticks improvement in MBS prices don't seem overly impressive. But if we consider that each of the past 3 days has seen 10yr yields close at the best levels of the month , it's a bit more interesting. Bonds haven't ended a month with yields this low since April. This wasn't necessarily a given from the outset today. While stocks and bonds don't necessarily HAVE TO follow each other, they've been sticking pretty close during the month. So there was some pressure from that …read more

Mortgage Rates Approaching 5-Month Lows

Posted To: Mortgage Rate Watch

Mortgage rates had another great day , with most lenders maintaining or improving upon yesterday’s 4-month lows. Given that we’d have to go back to May 8th, 2015 to see better rates, we’re very close to ‘5-month lows.’ In terms of top tier conventional 30yr fixed rate quotes, 3.875% remains most prevalent. A growing number of lenders are quoting 3.75% and only a few remain up at 4.0%. Not all borrowers will see a change in their quoted rate over the past few days, but in those cases, the closing costs would be lower or …read more

Cordray Speaks Out on TRID; Latinos, Household Growth, Culture, and The Housing Market

Posted To: Pipeline Press

Do you have fewer competitors than you did a few years ago? A recent MBA Chart of the Week highlighted HMDA respondents and found that in 2014, 7,062 institutions reported lending activity under HMDA, down from 7,190 lenders in 2013. The decline in HMDA reporting is due to a drop in the number of both depositories and non-depositories. But check this out: the share of the purchase market for non-depositories has increased from 27 percent of purchase originations in 2008 to 46 percent in 2014. The big banks are seeing a bit of a rebound in …read more

Major Loosening of High-Balance Conforming Standards; MyCommunity 2.0

Posted To: MND NewsWire

Fannie Mae is initiating what it is calling an “enhanced affordable lending product it has named the HomeReady mortgage . The new loan is a reconfiguration of its My Community Mortgage (MCM) which it brought on line in 2001 but which has gradually morphed, from an underwriting standpoint, into a more traditional kind of loan. The company says it has taken MCM and redesigned and enhanced it, targeting the loans to low-to moderate-income borrowers and buyers in designated low-income, minority, and disaster-impacted communities. The HomeReady mortgage is a standard product available to all Fannie Mae lenders …read more

Mortgage Apps Decline

Posted To: MND NewsWire

Application volumes fell even as interest rates were in a holding pattern during the week ended September 25. The Mortgage Bankers Association (MBA) said that mortgage applications as measured by its Market Composite Index decreased during the week by 6.7 percent on a seasonally adjusted basis and 7 percent unadjusted. The Refinance Index was down 8 percent from the week ended September 18 and the refinancing share of all applications fell slightly from 58.4 percent to 58.0 percent. Both seasonally adjusted and unadjusted Purchase Indices were down 6.0 percent but the unadjusted index remained 20 percent …read more

Mortgage Rates Back to 4-Month Lows

Posted To: Mortgage Rate Watch

Mortgage rates began the day moderately lower. As equities markets failed to mount any counterattack to recent losses, bond markets surged–including the mortgage-backed-securities (MBS) that dictate mortgage rates. As such, most lenders were able to offer mid-day improvements to the morning rate sheets. By the end of the day, the average rate sheet was as strong as it’s been since early May 2015 . At current levels, a conventional 30yr fixed rate 3.875% is a more common quote than 4.0% for top tier scenarios. Some of the more aggressive lenders are already down to 3.75%. …read more

MBS RECAP: Bonds Now Officially Trying to Break Out of The Range

Posted To: MBS Commentary

It was a volatile, but positive day for bond markets with 10yr yields closing well outside the recent range at 2.06. Fannie 3.5s gained 8 ticks to end at 104-09 and 3.0s were up 10 ticks at 101-09. Most of the 'back and forth' volatility occurred during the overnight session. Yields drifted slightly lower by the time European markets opened only to launch themselves quickly higher as stocks/oil/etc bounced back. In general, there were simply the same sorts of “risk-on/risk-off” tradeflows across multiple markets. For example, when “risk is on,” stocks, commodities, and bond yields are …read more

MBS MID-DAY: Yields Firmly Into 1-Month Lows as Stocks Struggle

Posted To: MBS Commentary

The stock lever is VERY well-connected recently. That means, at any given moment, if equities are moving higher, bond yields tend to be doing the same (and vice versa). Each side has taken its turn as the lead dog at times, but certainly, it's bonds that are more keen to follow when stocks are on the precipice of a major technical cliff. The cliff in question rests on the recent lows for equities markets. Using the S&P as an example, today's losses bring it back in line with the late August lows seen during the China-inspired …read more

All-Cash Sales Now Down to 31.3 Percent

Posted To: MND NewsWire

CoreLogic reported yet another decrease in the share of all-cash home sales in June. Those sales accounted for 31.3 percent of the total during the month compared to 33.9 percent in June 2014 and was down 0.7 percentage point from May. The company says that the share of cash sales has fallen each month since January 2013. Cash purchases were most common for real estate owned (REO) properties at 57 percent of the total and were the only category in which cash sales increased year-over-year. Resales (sales of existing houses) had a 30.8 percent cash share …read more

West Leading Home Price Gains While Sunbelt Lags

Posted To: MND NewsWire

Price gains accelerated slightly in July, increasing on an annual basis by 4.7 percent compared to a 4.5 percent year-over-year increase in June. The S&P/Case-Shiller U.S. National Home Price Index was up 0.7 percent month-over-month on a non-adjusted basis and 0.4 percent seasonally adjusted. The Case-Shiller 10-City Composite rose 4.5 percent compared to July 2014, about the same as the annual change in June. The 20-City Composite Index increased by 5% year-over-year , slightly more than it did in June. Both composites lost ground on a monthly basis, down 0.2 percent from June. All 20 cities …read more