MBS RECAP: Bonds Cheer Weak GDP and Month-End Momentum

Posted To: MBS Commentary

Heading into the close at much stronger levels this afternoon, it would be easy to overlook the fact that bond markets were weaker overnight (following the Bank of Japan's underwhelming policy announcement) and remained in weaker territory right up to the 8:30am GDP release. Who knows how momentum would have shaped up had GDP come in stronger than expected? While a weaker economy is unfortunate, its effect on interest rates is the opposite. Bonds rallied purposefully after the +1.2 vs +2.6 percent GDP miss (not to mention the revision to the previous quarter from 1.1 to …read more

Mortgage Rates Down to 2-Week Lows After GDP

Posted To: Mortgage Rate Watch

Mortgage rates enjoyed another strong day, falling to the best levels in exactly 2 weeks. Rates were actually set to move higher early this morning, but a much weaker-than-expected reading on Q2 GDP helped drive demand for bonds. Better buying pushes bond prices higher and rates lower. The strength in bond markets gave lenders the peace of mind needed in order to offer even better terms than yesterday. The most prevalent conventional 30yr fixed rate is quickly returning to 3.375% on top tier scenarios. Next week brings important economic data, including the big jobs report …read more

CFPB Requests Comments on TRID Changes

Posted To: MND NewsWire

The Consumer Financial Protection Bureau (CFPB) is proposing changes to its Know Before You Owe Mortgage Disclosure Act, usually referred to in the industry as TRID. CFPB said the changes are intended to formalize guidance about the rule and provide greater clarity and certainty. The Bureau is invited written comments on the changes until October 18. The TRID rule took effect on October 3, 2015 after several delays. The rule and associated disclosure forms were designed to provide borrowers with clear and consistent information about the mortgage loans they are receiving and limits changes that can …read more

Fannie And Freddie Changes; Jumbo Market Altering And Not For The Better

Posted To: Pipeline Press

“Buy land – they're not making any more of it.” And the reverse is happening in Louisiana. Say what you want about global warming, or inappropriate levy building, the fact is that the state is watching a football field-sized piece of land disappear under water every hour. Per the Smithsonian Magazine Louisiana is losing 75 square kilometers of coastal terrain every year. And in California this article points out a mining company is “stealing a beach. The International Monetary Fund and US regulators have given Deutsche Bank heat for risks posed by its 42 trillion euro …read more

Homeownership Dips to All-Time Low

Posted To: MND NewsWire

Homeownership rates, which have been declining since the end of the housing boom, hit an a ll-time low in the second quarter of 2016 . The rate at the end of the period was 62.9 percent on a non-seasonally adjusted basis compared to 63.5 percent in the first quarter and 63.4 percent in the second quarter of 2015. This information was contained in the Residential Vacancies and Homeownership report for the second quarter issued by the U.S. Census Bureau. There is some seasonality to homeownership rates and the seasonally adjusted rate for the quarter was 63.1 …read more

MBS Day Ahead: Bank of Japan Disappointment Offsets FOMC Excitement

Posted To: MBS Commentary

With 10yr yields up only 2.2bps to begin the day and MBS down only 2 ticks, it's interesting to note that initial reaction to the overnight policy announcement from the Bank of Japan was actually a bigger market mover than Wednesday's FOMC Announcement. The catch is that bond markets were able to stop the bleeding and find some support as the domestic session approached. Thus the recent range was never even remotely close to being threatened. As I write, Advance GDP (the first look at Q2, and thus more surprise potential) has just now come out …read more

CoreLogic: Slow Start for Cash Sales this Year

Posted To: MND NewsWire

Cash sales continued to account for a significant portion of all home sales in April. CoreLogic said on Wednesday that 31.6 percent of home sales that month were all cash , down 1.6 percentage points from March and 2.8 points from the previous April. For the first four months of this year cash sales made up fractionally more than a third of home sales, the lowest start for any year since 2008. Cash sales peaked in January 2011 when they accounted for 46.6 percent of all home sales . At that point, 24 percent of home …read more

MBS RECAP: Bonds Hold Gains Despite Stock Bounce; MBS Outperform

Posted To: MBS Commentary

In the bigger picture, today was all about confirming and consolidating yesterday's gains. Trading levels held inside narrow ranges for both MBS and Treasuries, and neither were flustered when stocks swooped back up toward yesterday's highs. MBS did a better job of being “less flustered” today–i.e. Fannie 3.0s gained 3/32nds in price while 10yr Treasuries lost 2/32nds–for a few reasons. First, there's the corporate bond calendar. Issuance was by no means active. In fact, there was only one announcement. But the company in question was Apple–well known for their big corporate bond offerings. Here's a refresher …read more

Best Day Since Brexit For Mortgage Rates

Posted To: Mortgage Rate Watch

Mortgage rates fell at the quickest pace in more than a month today as lenders priced-in the market improvements seen after yesterday’s Fed Announcement. Even though quite a few lenders offered improvements yesterday afternoon, the so-called “reprices” were conservative compared to improvements implied by trading levels in mortgage-backed-securities (the bonds that most directly affect mortgage rates). This lag effect between markets and rate sheets has been a fixture in the post-Brexit mortgage rate environment, and it has frequently resulted in today’s rate sheets reflecting yesterday’s market movement. The only catch is that today’s market movement …read more

EverBank On The Block; First Time Buyer Survey; Servicing Market Troubles Hitting Rates

Posted To: Pipeline Press

I don’t know how it is that we only have two business days left in July – time flies. For me this month has included Honolulu, Denver, Sacramento, San Francisco, and now Austin for several days – pretty nifty places. The mood out there among residential lenders? It has improved nicely as 2016 has progressed although there are grave concerns about the servicing market – see below. But lenders are licking their chops knowing that about half of securitized agency mortgages have interest rates higher than 4 percent, according to Inside Mortgage Finance. Loan officers know …read more