Looking for a legal forms?

CSS And Menu Css3Menu.com

 

MBS RECAP: The Range May Be Breaking...

 

Posted To: MBS Commentary

The range may be breaking! Well, one of the ranges we've been tracking may be breaking, as long as tomorrow sees bond markets hold the gains they saw today. Unfortunately, if that happens, it won't really mean that much--at least not yet. The range in question is the one marked by converging lines that rest along the higher lows and lower highs in 10yr Treasury yields (and many other sections of the bond market) over the past 2.5 months. This consolidation range was never going to make it past February considering the lines would have converged before than. Once it was inevitably broken, the best it could have offered us was a preview of the next horizontal level to be tested. In the current case, the diagonal line is breaking right about that same time that yields are already arriving...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Mortgage Rates Sticking Close to Long-Term Lows

 

Posted To: Mortgage Rate Watch

Mortgage rates fell modestly today, making it the 7th straight business day where they've moved in the opposite direction from the previous day. This see-saw pattern is commonly seen during periods of consolidation in the bond market (which serves as the foundation for mortgages and most other interest rates). And a consolidation is often seen during times of indecision just before markets embark on their next big move higher or lower. With many uncertainties set to be resolved by mid-March, there's a good enough chance that the recent sideways momentum in rates will give way to a bigger move. There's no way to know whether that move will be toward higher or lower rates (it will likely depend on the economic data, fiscal headlines, and Fed policy updates that have yet to be announced). For...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Low Rates and Strong Jobs Numbers Bolster Builder Confidence

 

Posted To: MND NewsWire

The Housing Market Index (HMI) continues to recover from the plunge it took in November and December when it dropped an aggregate of 12 points. The National Association of Home Builders (NAHB)/Wells Fargo measure of builder confidence in the market for newly-built single-family homes added another 4 points in February to the 2 it gained in January. It now standards at 62 on a 100-point scale. "Ongoing reduction in mortgage rates in recent weeks coupled with continued strength in the job market are helping to fuel builder sentiment," said NAHB Chairman Randy Noel. "In the aftermath of the fall slowdown, many builders are reporting positive expectations for the spring selling season." Derived from a monthly survey that NAHB has been conducting for 30 years, the HMI gauges builder perceptions...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

MBS Day Ahead: Trading Range on Borrowed Time

 

Posted To: MBS Commentary

For all of the potential market movers that anyone can discuss so far in 2019, we really haven't seen any concerted effort to take yields higher or lower from key technical levels. The higher of those levels was implied by late 2018 trading and the floor was seen 2 days into 2019. These can be seen as the upper and lower horizontal lines on today's chart. But bonds weren't content to merely trade in that historically narrow range. By February, the horizontal levels shrunk from 2.82 to 2.75, and from 2.55 to 2.62. And even then, the predisposition has been to trade narrower and narrower (yellow lines). This so-called consolidation range is now clearly living on borrowed time , as it won't take much movement in either direction to break. Keep in mind that when the yellow lines...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Marketing, Training Products; Another Wholesaler Exits; Conforming News

 

Posted To: MND NewsWire

Where’s John Mellencamp when you need him ? Lenders in rural areas know that over half of U.S. farm households lost money farming in the past few years. In 2018, the median (half above, half below) farm income for U.S. farm households was -$1,548. U.S. farm debt hit more than $409 billion in 2018, the largest sum in four decades, and farming’s Chapter 12 bankruptcy filings have been on the rise in the past several years . Lender Products and Services Through the expertise of third-party service providers, AIM automates the manual processes of assessing borrower assets and income. AIM reduces the burden of traditional documentation, speeds up the loan origination process and helps you close loans faster. Freddie Mac is working hard to bring you solutions that create efficiencies...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

MBS RECAP: Deceptively Relevant Econ Data But Range Prevails

 

Posted To: MBS Commentary

Since Retail Sales rocked markets yesterday, perhaps bonds would be interested in responding to economic data again today? This question seemed to have been answered when bonds apparently jumped following this morning's 8:30am economic data. The only problem was that the data in question included NY Fed Manufacturing and Import/Export Prices. These are not reports that tend to cause such immediate and highly correlated movement. So what gives? For better or worse, I stare at a tick by tick stream of bond data for most of the day. Anyone else who spends their lives in such a manner would also surely have seen bonds on the move in 2 distinct ways well in advance of 8:30am. The first was a more general move that began with the European trading session. While it was general and relatively slow...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

"Homeowners are in Great Shape," Delinquencies Improve Across the Board

 

Posted To: MND NewsWire

Mortgage loan delinquencies were down from the third quarter of 2018 in the fourth quarter. The Mortgage Bankers Association (MBA) said the improvements held across all loan types and all stages of delinquency although there was a slight uptick in foreclosure starts. The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 4.06 percent of all loans outstanding, down 41 basis points (bps) from the third quarter and 111 bps from the fourth quarter of 2017 according to MBA's National Delinquency Survey. The percentage of loans on which foreclosure actions were started in the fourth quarter rose by 2 bps to 0.25 percent but MBA said that was probably due to the expiration of foreclosure moratoria in states affected by natural...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Mortgage Rates in a Holding Pattern

 

Posted To: Mortgage Rate Watch

Mortgage rates were slightly higher today, marking the 6th day in a row where they've reversed course versus the previous day. This is the sort of behavior we see when underlying financial markets are having a hard time making up their mind (or are simply waiting for something before committing to the next big move). In the case of mortgage rates, the underlying financial market is the bond market. There are specific bonds that most directly affect mortgage rates, but they are almost always moving in the same direction as other bonds anyway. That allows us to use something like the 10yr Treasury yield to keep an eye on interest rate momentum. There we see yields locked in an increasingly narrow range since the beginning of the year. Movements inside that range aren't important to the bigger...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

MBS Day Ahead: Range Trade Likely to Dominate Heading Into Holiday Weekend

 

Posted To: MBS Commentary

Rates were at long term highs in early November 2019. Several global economic risks were beginning to swirl at the same time. These included a slowdown in German GDP, the weakest Chinese retail sales in 15 years, Italian budget drama, and a Federal Reserve that didn't seem to care about big stock losses in October. The Fed had released an announcement on the Wednesday before Veteran's Day weekend. That trading day saw 10yr yields hit 3.25% and they never went any higher after that. In fact, they mostly went lower--especially when the stock sell-off kicked into higher gear in December. All of the above made November and December the best 2-month stretch for rates in more than 2 years. When rates rally that aggressively, they usually take a break and move sideways before deciding if the...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

GSEs Continue Financial Winning Streaks

 

Posted To: MND NewsWire

Freddie Mac and Fannie Mae (the GSEs) reported solid financial results for both the fourth quarter and the entirety of the 2018 fiscal year on Thursday. The annual income was higher for both GSEs , although each posted a decrease quarter-over-quarter. Fannie Mae's total comprehensive income for the fourth quarter was $3.2 billion compared to $4.0 billion in the third quarter, and it reported a $16.0 billion total for the year. Because of ramifications from the 2017 tax act , its comprehensive income for the 2017 year was only $2.6 billion. Freddie Mac's total comprehensive income for the year was $8.6 billion compared to $5.6 billion in 2017 (it too had unusually high tax obligations that year.) For the fourth quarter comprehensive income dropped from $2.6 billion to $1.5 billion. Fannie Mae...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Sales Jobs; Construction, Marketing Products; Impressive Agency Earnings

 

Posted To: Pipeline Press

Huh? Radian was recently in takeover talks ? I only know what I read in the newspapers! Sometimes I wonder if everyone isn’t in M&A talks to one degree or another, and rumors continue to swirl about a publicly-held bank in the Northwest spinning off its mortgage division. There’s a lot going on in our biz, especially with Freddie & Fannie in the present & future – more below. Even my cat Myrtle is silent, ignoring my questions about what she’s been up to lately. Lender Products and Services With the new integration between LBA Ware’s CompenSafeTM and the enterprise digital mortgage solution from SimpleNexus , loan originators can now receive real-time compensation notifications through the SimpleNexus mobile app. SimpleNexus provides LOs with a single...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Fewer Plan to Buy, But Others Aren't Giving Up

 

Posted To: MND NewsWire

The perceptions, expectations, and plans of prospective homebuyers appear to be undergoing a transition according to results from the most recent Housing Trends survey report from the National Association of Homebuilders (NAHB). Rose Quint writes about the fourth quarter 2018 survey in a five-part series in the association's Eye on Housing Blog. She says that, for starters, there has been a steady erosion in the percentage of adults who said they planned to purchase a home within a year. That share slipped quarterly from 24 percent in the fourth quarter of 2017 to 13 percent in both the third and fourth quarters of 2018. Quint says the decline provides additional evidence that housing affordability has become a serious concern. Its deterioration has been driven by several years of strong home...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Mortgage Bankers Estimate 29% Surge in New Home Sales

 

Posted To: MND NewsWire

While we have not yet seen figures from the Census Bureau for December let alone January, the Mortgage Bankers Association (MBA) is reporting a surge in new home sales last month. Information from MBA's Builder Application Survey (BAS) indicates that those sales, while unchanged from January 2018, increased by 43 percent compared to December 2018. The change does not include any adjustment for typical seasonal patterns. On a seasonally adjusted basis, MBA estimates sales were at an annual rate of 713,000 units. This is an increase of 29.2 percent from the December estimate of 552,000 units. Before adjustment MBA estimates that there were 54,000 new home sales in January 2019, up 45.9 percent from 37,000 new home sales in December. Joel Kan, MBA's Associate Vice President of Economic and Industry...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

MBS RECAP: Dormant Data Returns in a Big Way

 

Posted To: MBS Commentary

Of all the reports silenced by the government shutdown, Retail Sales was probably the most missed. It didn't help that December is a rather important month for such data. December's report finally arrived today, and it made waves . While there has been some question as to how quickly markets would be willing to "trust" the economic data affected by the shutdown, traders were instantly willing to react in this case for 2 reasons. First off, the Census Bureau simply told markets that its collection efforts were solid right on the front page of the report. But even more important , in this case, was the size of the miss, with sales falling at their fastest pace since 2009. It was also a rare "down December" for the series, with 2014 being the only other example during...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Rates Are Better Today, But Not Back to 1-Year Lows

 

Posted To: Mortgage Rate Watch

Mortgage rates recovered today after rising to the highest levels in a week as of yesterday. The improvement followed a much-weaker-than-expected Retail Sales report--something investors have been waiting on for nearly 2 months due to the government shutdown. Retail sales comprise an important part of economic activity, and the economy is one of the biggest considerations for interest rates. Generally speaking, economic strength pushes rates higher, all other thing being equal. Thus, the unexpectedly weak retail numbers had the opposite effect. How big was the effect? Not quite as big as most other media outlets would suggest. The discrepancy is due to the regular Thursday release of the industry's most widely-cited mortgage rate report from Freddie Mac. While that report is accurate for the...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.