Mortgage and Finance

Mortgage News Daily

Posted To: Mortgage Rate Watch

Mortgage rates made an anti-climactic move lower today after the big jobs report proved slightly disappointing to markets. Stocks and bond yields both fell after the Bureau of Labor Statistics said only 223k jobs were created in June compared to a negatively revised 254k in May. Perhaps even more of an issue was the drop to 0.0 percent wage growth versus forecasts of 0.2 percent. The Fed has recently expressed interest in wage growth as one of the signs that economy is ready for a rate hike. After the data came out, options trading suggested the median Fed rate hike time frame moved into 2016. It had been September 2015 until today. Of course the Fed's eventual rate hike doesn't have a direct bearing on 30yr fixed mortgage rates, but it has all the bearing in the world on the short term money...(read more)

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7/2/2015 3:22:00 PM

Posted To: MBS Commentary

As far as days with big initial reactions to economic data go, today was about as boring as they come. The first part of the problem was the overnight bond market weakness. This had 10yr yields near 2.47 by the start of the domestic session. As such, the post-NFP rally had to work through those losses before pushing into positive territory. Now, about this post-NFP rally ... The headline wasn't too bad--223k vs 230k forecast. So why the rally? First off, the revisions took 60k jobs out of the equation. If you think about it, that would be like today's report coming in at +163k, with no past revisions. Wage growth (or lack thereof) also helped, coming in at 0.0 vs +0.2 forecast. The previous month was also revised 0.1 lower. With wages currently in the spotlight from a Fed policy standpoint...(read more)

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7/2/2015 3:18:02 PM

Posted To: MND NewsWire

In the S&P/Case-Shiller home price indices report for April David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices notes that, "Sales of new and existing homes are rising in recent reports and construction of new homes enjoyed strong gains in May. At the same time, the proportion of new construction that is apartments rather than single family homes remains high." Over the last year, he says, 34 percent of housing starts were apartments compared to an average of 22 percent over the years since 1975. He points out that one aspect of this could be an increase in condominium construction and that in all five of the cities in which Case-Shiller tracks condos, their prices are rising faster than single family homes. In the June edition of RealtyTrac...(read more)

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7/2/2015 2:51:47 PM

Posted To: MND NewsWire

A new analysis by CoreLogic shows an increased risk of mortgage application fraud associated with purchase loans while loans made for refinancing are showing decreased risk. Thus, as rates rise and refinancing diminishes, fraud can be expected to rise as well. The company, which has tracked fraud since 2010, said that application fraud has increased in Florida, New Jersey and New York by more than 20 percent since 2012 and to a lesser extent in Nevada, Illinois and California. According to its Mortgage Application Fraud Index, Fraud has decreased in most of the rest of the country, notably in Arizona and Georgia (down 36 percent and 26 percent respectively. Nationwide, however, fraud is increasing and is becoming more prevalent in larger metropolitan areas, especially in the Northeast and Southeast...(read more)

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7/2/2015 2:01:06 PM

Posted To: MND NewsWire

The National Association of Realtors® reported last week that first time buyers had increased their share of existing home sales in May by two percentage points and in a market where sales were up 9.2 percent in a year had increase their share of those sales by 5 points. On Thursday we got, as a famous newscaster used to say, "The rest of the story." RealtyTrac reported, in its May 2015 U.S. Home & Foreclosure Sales Report that both cash sales and institutional sales have shrunk again during the month, and in the case of cash sales are nearly back to historical norms. These sales had been cited as providing competition to traditional buyers both because they could close a transaction quickly a nd often bought without mortgage and perhaps even inspection contingencies. Institutional...(read more)

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7/2/2015 9:41:39 AM

Posted To: MBS Commentary

Bond markets came into the domestic session in markedly weaker territory, but not for any overt reason. Yields merely drifted defensively higher ahead of jobs data--a fairly understandable move considering that a strong number stood a good chance to do some serious damage. Not only did the headline miss expectations (223k vs 230k forecast), but the past 2 reports combined for 60k fewer jobs after revisions. Perhaps an equal amount of bond market strength drew on the fact that wages were flat, despite forecasts for a 0.2 percent gain. Last month's wage growth was also revised lower by 0.1 percent. Taken together, it was enough of an adjustment to the recent trend (in employment data) that traders actually adjusted their outlook on the Fed's rate hike timeline (via Fed Funds Futures trading...(read more)

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7/2/2015 9:39:55 AM

Posted To: Pipeline Press

It seems that lenders have had a more difficult time obtaining tax information from the IRS this year. I collected the tax-related updates over the last 2-3 months so you can see how lenders reacted - as always check with the actual lender or investor for specifics! And don't ask me to write to your CEO about removing overlays that certain lenders have that are different than the agencies! Remember that the IRS has blamed slow tax transcript turn times on budget cuts . The IRS sent this notice out a while back - it seems their computers are running slower since they are getting paid less? "As you may be aware, the IRS is operating at the lowest level of funding since 2008, and the lowest since 1998 when inflation is considered. All areas of the IRS are affected by the difficult choices these...(read more)

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7/2/2015 8:15:33 AM

Posted To: MBS Commentary

With markets closed tomorrow, NFP (the nonfarm payrolls component of the employment situation report) arrives a day early today, and despite all the focus on Europe, it's still important! Now, there's always some chance that a jobs report leaves us close to unchanged by the end of the day, but I'd be surprised to see that today. Reason being: we're entering the final approach to a probably Fed rate hike in September. Just yesterday, Vice-Chair Fischer reiterated that the Fed is in a hurry to hike, even before full employment and inflation targets have been reached, due to the lag in impact of monetary policy. Translation: the Fed doesn't want to be behind the curve when it comes time to level off at cruising altitude. It would follow logically then, that any strong showing...(read more)

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7/2/2015 5:33:36 AM

Posted To: MBS Commentary

The last two days were nice while they lasted , but today's trading levels are right back in line with most of last week. In other words, bonds sold off today. The weakness hit markets like a ton of bricks right at 5am. Draw your own conclusions, but this is when Europe's CPI reading came out in line with expectations. The last 3 readings of EU CPI have also been in line with forecasts or better, and each day has seen a significant sell-off. The implication is that markets are doing some mental math on the necessity for ongoing QE and tacitly determining that stable inflation in the Eurozone means that QE could be ended early. It's actually quite remarkable how well 2015's bounce coincides with improvements in CPI. All of the above was good enough for 10yr yields to sell-off...(read more)

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7/1/2015 3:39:26 PM

Posted To: Mortgage Rate Watch

Mortgage rates gave up recently-enjoyed gains today. This brings them to the week's highest levels (and the 3rd highest in 2015) a day before the all-important Employment Situation Report. Also referred to as "the jobs report" or simply "nonfarm payrolls," this is the most important piece of economic data released each month in terms of potential to move interest rates. If job growth is stronger than expected, rates usually rise. The farther away the actual number is from forecasts, the more markets usually move. Tomorrow is no exception despite several other important considerations ahead. One consideration that's hard to miss these days is Greece. The country goes to a referendum this weekend in order to vote on 'something.' No one is abundantly clear on what that 'something' is, but the...(read more)

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7/1/2015 3:39:00 PM

Reuters Business News

Reuters: Business News

ATHENS (Reuters) - Greece’s finance minister accused creditors of trying to "terrorize" Greeks into accepting austerity, warning Europe stood to lose as much as Athens if the country is forced from the euro after a referendum on Sunday on bailout terms.

7/4/2015 6:30:56 AM

BEIJING (Reuters) - China's top securities brokerages said on Saturday that they would collectively buy at least 120 billion yuan ($19.3 billion

7/4/2015 5:53:20 AM

(Reuters) - New Credit Suisse AG Chief Executive Tidjane Thiam has told a Swiss newspaper he wants quick action to implement results of strategic review he is conducting at the Swiss bank.

7/4/2015 5:11:16 AM

BRUSSELS (Reuters) - It's sultry early July and an emotional Jean-Claude Juncker is on the stump, calling for a 'Yes' vote in a referendum on which he says hangs the future of Europe - and his own career.

7/4/2015 4:47:54 AM

ATHENS (Reuters) - Tens of thousands of Greeks took to the streets on Friday in rival rallies that laid bare the deep divide heading into a referendum that may decide the country’s future in Europe’s single currency.

7/3/2015 4:08:36 PM

TURIN (Reuters) - Consolidation continues to be necessary in the auto industry but there is nothing new to report on Fiat Chrysler's desire for a tie-up with General Motors , FCA CEO Sergio Marchionne said on Friday.

7/3/2015 12:17:51 PM

(Reuters) - Health insurer Aetna Inc on Friday said it would buy smaller rival Humana Inc for about $37 billion in cash and stock, in the largest ever deal in the insurance industry.

7/3/2015 10:32:50 AM

LONDON (Reuters) - There is at least one legal way to get your euros out of Greece these days, to guard against the prospect that they might be devalued into drachmas: convert them into bitcoin.

7/3/2015 6:40:32 AM

SAO PAULO (Reuters) - Swiss lender UBS AG made a whistleblower deal with Brazilian authorities investigating the suspected rigging of Brazil's currency market and will receive no punishment in the case, a local newspaper reported on Friday.

7/3/2015 6:19:34 AM

SHANGHAI (Reuters) - Chinese stocks tumbled again on Friday, taking the week's losses to more than 10 percent, as the securities regulator said it was investigating suspected market manipulation and announced a slew of measures aimed at heading off a full-blown crash.

7/3/2015 5:58:00 AM
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