Mortgage News Daily
MBS RECAP: 1/27/2012
by Matthew Graham
27 Jan 2012 at 1:19pm
Posted To: MBS Commentary
MBS Live : MBS RECAP Open MBS Live Dashboard FNMA 3.5 103-22 : +0-06 FNMA 4.0 105-19 : +0-04 FNMA 4.5 106-25 : +0-01 FNMA 5.0 107-30 : -0-02 GNMA 3.5 105-03 : +0-04 GNMA 4.0 107-23 : +0-02 GNMA 4.5 109-07 : -0-02 GNMA 5.0 110-24 : -0-08 FHLMC 3.5 103-16 : +0-06 FHLMC 4.0 105-11 : +0-03 FHLMC 4.5 106-08 : +0-00 FHLMC 5.0 107-14 : -0-02 Pricing as of 4:03 PM EST Afternoon Market Updates A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard . 2:28PM : ALERT: MBS Hit Day's Highs, Underperforming TSYs in Low Volume The day, and week for that matter, are effectively over. The little volume that's left is exerting a greater degree of influence over the price action than it otherwise might. With little to trade on, and little reason to oppose the...(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 Improve For a 3rd Straight Day, Nearing All-Time Lows Again
by Matthew Graham
27 Jan 2012 at 10:52am
Posted To: Mortgage Rate Watch
Mortgages Rates continued their march into better territory today, capping a 3 day effort of improvement following Wednesday's FOMC Announcement. At this point, rates have not only solidified their re-entry into 3.875% Best-Execution levels, but some lenders are once again competitively priced at rates below that (for detail on "best-execution," READ THIS POST ). That said, we've seen a high degree of stratification over the past 3 days as lenders have responded to the bond market rally at different paces. When we say that rate offerings are more stratified, we're talking about various lenders offering increasingly different rates to the same type of borrowers. At a good handful of lenders in our survey, best-execution rates are still at 4.0%, while the bulk have moved down to 3.875%. But a...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
AG Holder Announces Structure of MBS Fraud Unit
by Jann Swanson
27 Jan 2012 at 10:36am
Posted To: MND NewsWire
The formation of the Residential Mortgage-Backed Securities Working Group tasked with investigating mortgage fraud is now official. The new office, which will be part of the Administrations Financial Fraud Enforcement Task Force (FFETF) was first announced by President Obama in his State of the Union speech on Tuesday. At a press conference this morning (video below), Attorney General Eric Holder along with Housing and Urban Development (HUD) Secretary Shaun Donovan, Securities and Exchange Commission (SEC) Director of Enforcement Robert Khuzami and New York Attorney General Eric T. Schneiderman, Holder outlined the mechanics of the working group which will bring together the Department of Justice (DOJ), several state attorneys general and other federal entities to investigate those responsible...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
MBS End Week Near All Time Highs, But Benchmark Rally Momentum is Slowing
by Matthew Graham
27 Jan 2012 at 9:55am
Posted To: MBS Commentary
The trading day is rapidly growing uneventful and charts suggest that quite a few market participants already have one or more feet out the door for the weekend. The only real pop of volume and volatility was seen around this morning's GDP report, which was generally a mild boon to bond markets. Consumer Sentiment was close enough to consensus as to have been a non-event and everything since then has been even less so. Trading ranges are narrowing... Stocks and Bonds are following each other to a greater extent... and Volumes are rapidly dwindling... Unless something unexpected happens to cause a surge in volume and volatility, game over... bond markets win. Not only is the pivot point seen in the video a ceiling from yesterday, but it was a major ceiling from the day before, after the FOMC...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
MBS MID-DAY: 1/27/2012
by Matthew Graham
27 Jan 2012 at 8:19am
Posted To: MBS Commentary
MBS Live : MBS MID-DAY Open MBS Live Dashboard FNMA 3.5 103-18 : +0-02 FNMA 4.0 105-17 : +0-02 FNMA 4.5 106-25 : +0-00 FNMA 5.0 108-01 : +0-01 GNMA 3.5 104-31 : +0-01 GNMA 4.0 107-21 : +0-00 GNMA 4.5 109-06 : -0-03 GNMA 5.0 110-30 : -0-02 FHLMC 3.5 103-12 : +0-02 FHLMC 4.0 105-09 : +0-02 FHLMC 4.5 106-09 : +0-01 FHLMC 5.0 107-17 : +0-01 Pricing as of 11:04 AM EST Morning Market Updates A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard . 10:15AM : Fed's Dovish Dudley Says Recovery to Slow in 2012 RTRS ? Fed?s Dudley says much work remains to achieve Fed's dual mandate of employment, price stability RTRS - monetary policy will continue to do its part to support recovery RTRS - action on housing, fiscal policy also needed for recovery RTRS...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
LPS: Mortgage Originations Among Highest Quality Ever in 2010-2011
by Jann Swanson
27 Jan 2012 at 8:15am
Posted To: MND NewsWire
The Lender Processing Services (LPS) Mortgage Monitor Report for December show improvement in a number of the metrics it tracks. Many measures of delinquency rates are down, inventories are clearing in some states, and recent loan originations are "among the best quality on record." The overall delinquency rate did not change from November, remaining at 8.15 percent but is down 7.7 percent since December 2010. Seriously delinquent loans, those 90 or more days overdue or in foreclosure decreased 0.6 percent to 7.67 percent, a -5.9 percent change from one year earlier. The foreclosure rate which was 4.16 percent in November fell to 4.11 percent in December and is down 1.0 percent year-over-year. Foreclosure starts showed the most dramatic change. There were 159,092 starts in December compared...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
What Should the Government do to Address the Inventory of Foreclosed Properties?
by Brian Montgomery
27 Jan 2012 at 7:06am
Posted To: Voice of Housing
Economists calculate that the decline in home prices has cost American homeowners approximately $7 trillion in home equity. Compounding this problem is the fact that the inventory of homes available for sale remains high and there is potential for a significant volume of “shadow inventory” to hit the market. Intervention is necessary to support the fragile recovery in the housing market and to prevent further declines in home values. What steps must policy makers take to prevent the loss of additional trillions in home equity? The abundant supply of homes available for sale presents opportunities for first-time homebuyers and “move-up” buyers as affordability is at an all-time high. Many, however, are hesitant to make a move as they wait for values to reach “bottom...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
California Says "No Thanks"; FHA Compare Ratio, and Lender FHA Changes not to...
by Rob Chrisman
27 Jan 2012 at 6:44am
Posted To: Pipeline Press
"The trouble with quotes on the internet is that it's difficult to determine whether or not they are genuine." So said Abraham Lincoln. But here is one I received yesterday from Steve S., the president of Residential Mortgage Group in Minnesota: "In thinking about the mortgage programs being proposed, we continue to be too stupid to have our own country." And another from a broker discussing signing documents with his clients: "Anyway, I had an older married couple come in to sign refinance papers this morning and when they got to the page entitled 'Intent to Proceed with Application,' the husband threw up his hand and said, 'You mean we sign and initial 29 times and they still think we don't intend to proceed? Monkeys! We are governed by Monkeys!'" These blunt thoughts reflect many e-mails...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
The Day Ahead: GDP, Consumer Sentiment, and Euro Headline Potential
by Matthew Graham
27 Jan 2012 at 4:56am
Posted To: MBS Commentary
Volume in the overnight session was just under recent averages but respectable overall. 10yr Treasuries rose as high as 1.9681 after a relatively strong Italian debt auction. Beyond that, there was no major driver of trade as it seems bond markets have opted to shy away from overly aggressive bullish breakouts and are perhaps waiting for this morning's GDP, next week's NFP, or resolution to Greek bond-swap talks that may come some time in between. MBS are opening 2-3 ticks lower; S&P futures just slightly higher, but generally followed bond markets overnight. The world economic forum in Davos continues. The schedule is packed with what sound like meaningful events, such as a "panel debate on the future of the Euro-zone," but as always, we'll have to wait for potentially meaningful news...(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: 1/26/2012
by Matthew Graham
26 Jan 2012 at 1:19pm
Posted To: MBS Commentary
MBS Live : MBS RECAP Open MBS Live Dashboard FNMA 3.5 103-14 : +0-13 FNMA 4.0 105-14 : +0-08 FNMA 4.5 106-23 : +0-06 FNMA 5.0 107-31 : +0-06 GNMA 3.5 104-29 : +0-15 GNMA 4.0 107-20 : +0-10 GNMA 4.5 109-08 : +0-08 GNMA 5.0 110-32 : +0-08 FHLMC 3.5 103-08 : +0-13 FHLMC 4.0 105-07 : +0-09 FHLMC 4.5 106-07 : +0-07 FHLMC 5.0 107-15 : +0-06 Pricing as of 4:03 PM EST Afternoon Market Updates A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard . 1:37PM : ALERT: MBS, Treasuries Settling -In Around Best Levels After 7 Yr Auction Although MBS aren't making any new highs, it's not uncommon to see a few lenders offer positive reprices when prices simply hold steady, especially when that steadiness is at the highs of the day (also highs of the past 3...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Remodelers See Business Improving
by Jann Swanson
26 Jan 2012 at 12:17pm
Posted To: MND NewsWire
Like their home-building counterparts, remodelers who are members of the National Association of Home Builders (NAHB) are displaying more confidence in their industry than they have in years. The NAHB's Remodeling Market Index (RMI) for the fourth quarter of 2011 which measures remodelers' sentiments about their business climate rose to 46.6 its highest level in five year. In the third quarter the Index was 41.7. Like the Home Builders Index (HMI) the measures responses from home builders, the RMI surveys NAHB members who are involved in remodeling about current market conditions and about indicators of future conditions. Scores above 50 for the HMI, the RMI or their component indices indicate that more respondents view the market as good than view it as fair. In January the HMI hit a 54 month...(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 Continue To Solidify Bounce Back To Lows
by Matthew Graham
26 Jan 2012 at 12:17pm
Posted To: Mortgage Rate Watch
Mortgages Rates over the past two days have done much to make ground lost leading up to Yesterday's FOMC Announcement. After further improvements today, rates further solidified their reentry into 3.875% 30yr Fixed Best Execution levels. (for detail on what that means, READ THIS POST from a few days ago). The rounded average of various lenders' Best-Ex rates had moved up to 4.0%, and more than a few lenders are still well-priced there, but a majority are once again offering 3.875% with attractive borrowing costs. Yesterday's FOMC Announcement (Federal Open Market Committee or simply "The Fed") which surprised some market participants with it's inclusion of new verbiage describing how long the Fed anticipated that it would keep its "Fed Funds Rate" at so-called "exceptionally low levels," continues...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
MBS Trade Calmly Near Multi Month Highs
by Matthew Graham
26 Jan 2012 at 11:44am
Posted To: MBS Commentary
The "flatness" of MBS prices is simply uncanny considering that Fannie 3.5's are currently right at their highest levels since late September, and considering the volatility earlier in the week. While it's true that the volatility was definitely expected ahead of the FOMC announcement, the extent to which it has subsided has been nothing short of astonishing. Now... I don't do a perfect job of keeping day-to-day and hour-to-hour tabs on implied volatility, but I do try to glance at 3-month floating vs 10yr fixed swaption straddles (which is one of more popular proxies for volatility in MBS markets). These are measured in basis points (BP), and essentially, the currently quoted BP value is "at the money," meaning the swaption contract makes money for the buyer if the spread between 3-month floating...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
New Home Sales Disappoint, Dropping 2.2%
by Jann Swanson
26 Jan 2012 at 8:26am
Posted To: MND NewsWire
New home sales declined by 2.2 percent to a seasonally adjusted annual rate of 307,000 units in December according to data jointly released by the U.S. Census Bureau and the Department of Housing and Urban Development. November sales were revised down from the original estimate of 315,000 to 314,000. The recent sale pace was 7.3 percent lower than the 331,000 reported in December 2010. The non-seasonally adjusted median home price in December was $210,300 and the average price was $266,000. One year earlier the respective prices were $241,200 and $291,700. There were 157,000 new homes for sale at the end of December compared to 158,000 at the end of November and 190,000 in December 2010. The median time the homes have been on the market is 6.7 months, down from 7.3 months in November and 7...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
MBS MID-DAY: 1/26/2012
by Matthew Graham
26 Jan 2012 at 8:19am
Posted To: MBS Commentary
MBS Live : MBS MID-DAY Open MBS Live Dashboard FNMA 3.5 103-15 : +0-14 FNMA 4.0 105-15 : +0-09 FNMA 4.5 106-24 : +0-07 FNMA 5.0 107-30 : +0-05 GNMA 3.5 104-28 : +0-14 GNMA 4.0 107-20 : +0-10 GNMA 4.5 109-09 : +0-10 GNMA 5.0 110-30 : +0-06 FHLMC 3.5 103-09 : +0-14 FHLMC 4.0 105-08 : +0-10 FHLMC 4.5 106-05 : +0-05 FHLMC 5.0 107-14 : +0-05 Pricing as of 11:03 AM EST Morning Market Updates A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard . 10:18AM : NAHB: Remodeling Market Index Rises to Five-Year High Remodeling sentiment rose to the highest level in five years, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) for the fourth quarter of 2011. Released today, the RMI increased to 46.6 in the fourth...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
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