MBS RECAP: Bond Markets Battle Back to Green After Weaker Open

Posted To: MBS Commentary

Bonds opened weaker as Yellen's Friday comments reverberated data was largely ignored Bonds rallied after Brexit poll and technical ceiling in 10yr yields 10yr Treasuries have been holding a very tidy, very sideways range for 8 straight days now (that's every single session since the FOMC Minutes, for what it's worth). During that time, they never moved above 1.89. Today marked the closest call with that upper boundary as domestic traders joined the bond market sell-off already in progress early this morning. Not only did the range end up holding, but bonds soon found reason to …read more

Mortgage Rates Steady Today, but Volatility Looms

Posted To: Mortgage Rate Watch

Mortgage rates were generally unchanged to begin the short work-week for financial markets, though that wasn’t the case at first. Earlier this morning, most lenders were quoting higher rates than those seen last Friday. Markets improved rather significantly during the course of the day, allowing most lenders to ‘reprice’ to lower rates, thus bringing them back in line with Friday’s. Despite the apparent lack of volatility today, the rest of the week could see much bigger moves depending on the outcome of the various economic reports that will be released between now and Friday. In …read more

Price Gains Ease Slightly on National Basis

Posted To: MND NewsWire

The annual pace of price gains nationally slowed slightly in March according to the S&P Case-Shiller National Home Price Index. The 10- and 20-City Composite Indices however increased at the same level as in February. The National Index, which covers all nine U.S. census districts, was up 5.2 percent compared to March 2015. The February-to-February gain was 5.4 percent. The 10-City Composite rose 4.7 percent year-over-year and the 20-City was 5.4 percent higher. Both increases were identical to those in February. Three western cities continued to post double digit annual price increases. Portland was up 12.3 …read more

New and Proposed FHA & VA changes – HECMs In The News

Posted To: Pipeline Press

Research by the EBRI on retirement finds while 67% of workers plan to work for pay in retirement, only 27% of retirees do so. Of the retirees who worked, the reasons included wanting to stay active and involved (82%), enjoy working (80%), wanting money to buy extras (57%), need money to make ends meet (51%), a decrease in the value of their savings or investments (43%), and to keep health insurance or other benefits (32%). FHA published its Home Equity Conversion Mortgage (HECM) proposed rule , Strengthening the Home Equity Conversion Mortgage Program (FR-5353-P-01), in the …read more

MBS Week Ahead: Bonds on The Ropes as Month Ends and Data Hits

Posted To: MBS Commentary

Last week's moderate resilience could have been temporary due to 'month-end' This could also help today, to some extent If it doesn't, it's the first clue about a potential break of the long-term range If data confirms that break, Fed rate hike fears will increase and bonds won't be happy The holiday-shortened week begins on a bit of a gloomy note, both because of where bonds were already trading at the end of last week as well as the moderate weakness seen in the overnight session. Any push toward higher yields this week will increasingly cast …read more

MBS RECAP: Bonds Do Mostly Nothing on Mostly Pointless Day

Posted To: MBS Commentary

GDP was +0.8 vs +0.9 forecast this morning Consumer Sentiment was 94.7 vs 95.4 Inflation expectations were the lowest since 2010 But markets didn't trade any of that data Anyone who was still working, was waiting to see if Yellen would say something She did, and the 3 people still working sold bonds These pre-holiday half-days are fairly pointless , and only really exist as a courtesy to the folks who need access to financial markets for operational reasons. To a lesser extent, they also provide another day for economic data releases without needing to reschedule …read more

Mortgage Rates Calm Ahead of Long Weekend

Posted To: Mortgage Rate Watch

Mortgage rates were sideways to slightly lower today, depending on the lender. Financial markets closed early for Memorial Day weekend, and will be fully closed on Monday. As such, lenders won’t be updating rate sheets again until Tuesday. Today’s rate sheets aren’t too terribly different from yesterday’s. Most lenders are unchanged and a few are offering just slightly lower costs for the same “note rates” seen yesterday. The most prevalently-quoted conventional 30yr fixed rate continues to be 3.75% on top tier scenarios, but there are several lenders at 3.625%. The financial markets that underly mortgage …read more

CFPB Goes After Individual LO; The Cost of Regulation on Home Prices; TRID Costs Continue

Posted To: Pipeline Press

Do you think your company’s computer system is immune from hacking? It’s not a matter of “if” but “when” – just ask Equifax about its data breaches hitting the press . Not only that, but one can buy practically anything on the internet: hackers are selling 117mm LinkedIn passwords on the web. Hackers will likely use such data to mine it and then gain access to email and bank accounts (because so many people reuse passwords for their various accounts). Change your passwords regularly (like from “Passwerd” to “abc1234”) and don’t use the same one for …read more

MBS Day Ahead: Yellen Speech Won’t Matter Until Next Week–Even if it Moves Markets Today

Posted To: MBS Commentary

GDP at 8:30am won't matter Consumer Sentiment at 10am won't matter Yellen at 10:30am (and 1:15pm) won't matter All of the above–but especially Yellen–can matter next week As I like to point out from time to time, Wall Street and bond trading desks at the CME in Chicago are s taffed by human beings . With all of the press devoted to algorithmic trading in recent years, and with simple deductive reasoning in an age of ever-increasing digital technology, it's all too tempting to assume that trading can easily be handled by big racks of low-latency …read more

MBS RECAP: Early Month-End Buying Boosts Bonds

Posted To: MBS Commentary

Early month-end trading environment provided constant support Strong Durable Goods headline didn't matter gains were linear into the noon hour, then leveled off, and came back after the 7yr Auction 10yr yield ended 4.2bps lower at 1.83 Bonds didn't do much through the overnight session, but so-called “duration needs” became apparent right as domestic traders sat down for the day. “Duration needs” refers to bond traders' need to own a certain mix of bonds that satisfy the “duration” requirement of an index that their investors expect them to hit. In other words, if my portfolio has …read more