New Home Sales and Prices Rose in September -MBA

Posted To: MND NewsWire

Sales of newly constructed homes ticked up 7 percent in September when compared on a non-seasonally adjusted basis to August according to the Mortgage Bankers Associations (MBAs) Builder Application Survey (BAS). MBA said sales were 3 percent higher than in September 2015. MBA issues a monthly estimate of new home sales based on the BAS which is conducted with the mortgage subsidiaries of major home builders. Official new home estimates come from the U.S. Census Bureau and the Department of Housing and Urban Development. Those numbers for September will be released on October 24. Lynn Fisher, …read more

Non-Owner Trends Not Helping Small Lenders and Impacting Secondary Markets; Upcoming Events

Posted To: Pipeline Press

We’ll be following the big bank earnings today and next week, and those banks know a thing or two about personnel changes. Research by the Society for HR Management finds the primary reasons employees leave their current organization are: compensation/pay (62%), benefits (30%), career advancement opportunities (27%), job security (24%), meaningful work (17%) and flexibility to balance work and life issues (16%). Looking at industry trends, soon after the crash that began in 2008, and delinquencies & foreclosures increased, large companies were making the headlines buying large blocks of residential real estate and turning them into …read more

MBS Day Ahead: Pause For Major Reflection on Medium-to-Long-Term Trends

Posted To: MBS Commentary

Never forget, even in a perpetual long-term downtrend–even in a downtrend with more room to run in the bigger picture–there will be corrections toward higher rates. And one of them is happening right now. I wish I could tell you exactly how long it will last or exactly what markets are looking for in order to resume the good times, but no one can do anything but guess. Past examples are far too diverse , not to mention the fact that markets have a knack for breaking the mold of past precedent (after all, if things …read more

MBS RECAP: Bounce Back is a Matter of Perspective

Posted To: MBS Commentary

Corrections and consolidations are a natural part of market movements. It's uncommon for losing streaks to last more than 8 straight days without reprieve. The most recent losing streak lasted 10 straight days and was finally ended by today's gains. While that makes today a big win in and of itself, we'd need to see a few more days with similar progress before we can consider today as something more than a correction inside the trend that's been intact since early July (red lines in the following chart). At the very least, we need to see …read more

Rates Lower Today, But Much Higher Than Last Week

Posted To: Mortgage Rate Watch

Mortgage Rates managed to make modest gains today, moving just slightly lower for the average lender. That’s a welcome development after 10 straight days of higher rates, but it’s more of a symbolic victory for now. Reason being: most lenders are quoting the exact same rates as yesterday, with improvements limited to small adjustments in upfront costs. In other words, rates are lower on average, but by such a small amount that the average borrower won’t see a change. 3.625% continues as the most prevalent quote on top tier scenarios, up from 3.375% just 2 …read more

Earthquakes Should Be a Growing Concern For Housing

Posted To: MND NewsWire

Earthquakes may just be the Rodney Dangerfield of natural disasters. They get no respect relative to most other natural disasters–likely due to the infrequency of major quakes. CoreLogic reminds us that wildfires are seemingly constant in the West; the Midwest rarely gets through a spring without at least one devastating tornado and every winter seems to bring a blizzard of the century and we are fresh off of hours of coverage of Hurricane Mathew and its massive floods. But absent the headline events, businesses and average citizens don’t think of natural hazard risk on a daily …read more

Primer on Appraisals – ASB, TAF, BPO, AVM, AQB, HVCC, AMC, and HUD’s Changes

Posted To: Pipeline Press

For all you mortgage execs in your 60s and 70s, who want to feel young again, you should join the YMPA: Young Mortgage Professionals Association . Nope, this is not a paid ad. And youngsters should definitely check it out. YMPA was founded almost a year ago and is growing fast, grass roots style: it already has chapters in San Diego, Arizona, Connecticut, and Massachusetts. Its mission is to help position young professionals for a long term, successful career in the mortgage industry. Blow up the e-mail of Shannon Moore if you have questions. (Hey, that’s …read more

MBS Day Ahead: Are Bonds Ready to Bounce?

Posted To: MBS Commentary

Even though yields have made new intraday highs on 9 out of the last 9 days, we may have seen some early clues about the selling trend leveling-off. Of course, the tricky thing with such bounces is that they can sometimes prove to be mere corrections. If that's the case, the selling trend will resume shortly. But until and unless that happens, we have some proverbial “green shoots” sprouting up in bond market technicals. Specifically, Treasuries have closed out several recent sessions at yields that were near or below opening levels (as opposed to ending the …read more

MBS RECAP: Bonds Claw Back to ‘Unchanged’ After Fed Minutes

Posted To: MBS Commentary

No one was really sure what the Fed Minutes possibly could have said to surprise markets, but that didn't stop traders from pricing-in a bit of defense against the unknown. What could that unknown have been? After all, we know there's dissent based on the 3 voters that broke from the pack at the meeting. We know that even the Fed's dovish members are talking seriously about hiking by the end of the year. We know that some moderate-to-dovish Fed members have shifted toward a more hawkish tone. And we know the Fed has a strong …read more

Mortgage Rates at 4-Month Highs

Posted To: Mortgage Rate Watch

In and of itself, today wasn’t too bad of a day. Mortgage Rates were only slightly higher, and were generally unfazed by the release of the Minutes from the most recent Fed meeting. Market participants were concerned about the Minutes making a clearer case for a rate hike at the next meeting. Ultimately, the Minutes didn’t tell us anything we didn’t already know and bond markets (which dictate mortgage rates) improved. Now for the unfortunate aspects of the day! When we consider today in the context of the past 9 days, we see that it …read more