MBS RECAP: Bad Day, Good Week, Flat Month

Posted To: MBS Commentary

While there has been a good amount of volatility in September, it was fairly flat, relative to August's latest levels. Up until this week, that wasn't necessarily destined to be the case. The week began with 10yr yields breaking back into the familiar 1.5-1.6 range. Tuesday-Thursday solidified and confirmed the move, with yields ending the day under 1.55 yesterday. In that context, today's weakness was somewhat disconcerting . After a calm, slightly stronger morning, selling pressure hit like a freight train beginning around the 9:30am NYSE open. Most media outlets chalked-up the abrupt selling to reports …read more

Mortgage Rates Mixed, But Closer to Recent Lows

Posted To: Mortgage Rate Watch

Mortgage Rates were mixed today, with some lenders in slightly weaker territory while others offered modest improvements versus yesterday. The dichotomy has to do with the timing of yesterday’s market movements. Bond market began the day in weak territory yesterday but improved noticeably by the end of the day. Some lenders sent out updated (better) rate sheets while others stood pat. Lenders whose rates increased today tended to come from the group that offered improvements yesterday afternoon. Long story short, there was a brief window of the week’s best rates for some lenders yesterday with …read more

Mortgage Performance Stable as Balances Decline

Posted To: MND NewsWire

The second quarter Mortgage Metric Report from the Office of Comptroller of the Currency (OCC) shows a universe of mortgage loans that are performing in a relatively stable manner , with any movement toward further improvement. The report covers seven national banks with large servicing portfolios. In total those institutions were servicing approximately 20.7 million first lien mortgages with $3.6 trillion in unpaid principal balances (UPB). The dollar figure represents 37 percent of all first-lien mortgage debt in the US. At quarter’s end, about 89 percent of these loans were being serviced by the national banks …read more

2015 HMDA Data and Dashboard; CFPB Weighs in on 1003 and HMDA Data; ALTA on CD

Posted To: Pipeline Press

Are you sure that you want to keep originating FHA loans? There’s a lot of profit per loan, but it is easy to see why some companies like Chase have really pulled back from originating them. Branch Banking & Trust Company, a unit of BB&T Corp, is the latest in a growing list of companies smacked by fines, and will pay $83 million to settle charges that it originated and underwrote federally insured mortgages that did not meet federal requirements. The U.S. Justice Department said that BB&T, as a “direct endorsement lender” in the FHA’s mortgage …read more

MBS Day Ahead: Month/Quarter-End Bond Buying Primer

Posted To: MBS Commentary

As we approach the rest of the trading day, keep the info from this month/quarter-end bond buying primer in mind. Remember that the bond market unofficially closes at 3pm Eastern time (due to the 3pm close of CME pit trading as well as simple market convention) even though trading visibly continues through the 5pm close of CME electronic trading. Bottom line: there can be a gigantic flurry of volume and volatility centered on 3pm, and there won't be any overt correlation to news or data. So how exactly does month-end affect bond markets? Money managers are …read more

MBS RECAP: Overblown Headlines Thwart Bond Bounce

Posted To: MBS Commentary

Bond markets were weaker overnight and continued pushing toward the first of two important resistance levels (think “ceilings”) during the domestic session. Before any of the day's drama set in, however, we managed to bounce before breaking that ceiling thanks to tradeflows that kicked in at the 9:30am NYSE open. 10yr yields came down from roughly 1.60 to 1.58 in the first half hour of NYSE trading and then held fairly flat for the next few hours. Then the drama showed up . Bloomberg ran a story about hedge funds pulling certain cash holdings from Deutsche …read more

Mortgage Rates Edge Higher, But Remain in Low Range

Posted To: Mortgage Rate Watch

Mortgage Rates were slightly higher again today, marking the second day spent pulling back from a nice move lower that followed last week’s Fed announcement. Although mortgage rates aren’t directly influenced by the Fed Funds Rate itself, quick changes in the expected course of central bank policy can cause volatility for most any lending rate. This has been the case over the past 2 weeks. Rates moved quickly higher after various speeches from the Fed and the European Central Bank earlier this month. The recent move lower brought rates back into the range that dominated …read more

Wages Lag Home Prices; Affordability Suffers

Posted To: MND NewsWire

The lack of housing affordability is rising among the 414 U.S. counties tracked by ATTOM Data Solutions. ATTOM, the new parent company of RealtyTrac, said on Thursday that 24 percent of those counties were less affordable than their historic averages in the third quarter of 2016, up from 22 percent in the second quarter and 19 percent a year earlier. It was the highest share for this metric since the third quarter of 2009 when 47 percent of markets had fallen below their historic affordability averages. ATTOM reports that 101 of the 414 counties had an …read more

Housing Inventory Issues Stifle Pending Sales

Posted To: MND NewsWire

Pending home sales were unable to sustain the slight upward tick experienced in July and resumed their downward trend in August, declining by 2.4 percent. It was the third time in four months that pending sales have failed to exceed the previous month’s numbers. The National Association of Realtors said its Pending Home Sales Index (PHSI), a forward-looking indicator based on home purchase contracts signed, was 108.5 in August compared to 111.2 in July and at the lowest level since a reading of 105.4 in January 2016. August’s pending sales were also slightly (0.2 percent) lower …read more

Even if Refinancing Looks Like a No-Brainer….

Posted To: MND NewsWire

Why are so many people holding on to mortgages with high interest rates? Sentiment? Inertia? Apparently not. In the current issue of CoreLogic’s MarketPulse , Principal Economist Molly Boesel drills down into the universe of borrowers who are standing fast with their old loans, even though it looks on paper like a refinance would be a smart move. She finds that many of these borrowers haven’t refinanced either because they can’t or it really isn’t worth it. Looking at the mortgages that were outstanding at the end of May, Boesel found that 41 percent of them …read more