Mortgage and Finance


Mortgage News Daily

Posted To: Pipeline Press

As mortgage bankers gear up to see what the Shipping Department dresses up as tomorrow, let's take a quick look at some demographics. There is now a larger cohort of unmarried young adults who are driving the overall homeownership rate down as they are less likely to own a home. The creation of household formations plays an important role in homeownership rates among young adults and is one of the main reasons the average age of first time home buyers is now 31 years old. There were plenty of smoke signals yesterday regarding Provident Funding Associates, LLC. as the broker herd was spooked. (There are several "Providents" around the nation, so the rumors may not have involved the well-known California wholesaler that bills itself as, "The Undisputed Price Leader since 1992", known to live...(read more)

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10/30/2014 9:19:25 AM

Posted To: MBS Commentary

GDP reports come in three flavors: advance, preliminary, and final. Today is the 'advance' reading for the 3rd quarter and hence the first look at Q3 GDP despite Q3 having been over for a full month. Because of its stale nature, the market impact of GDP is often questioned, but the advance has the most potential of the three. In addition to GDP there is other economic data, a Yellen speech, and the week's last Treasury auction. Maybe somewhere in the mix of these events, markets will find some justification for actual movement, because yesterday's FOMC Announcement didn't really cut it. Granted, we'd discussed the fact that the Announcement itself would be less interesting than the longer-term market reaction that can now begin, but even then, the lack of response yesterday...(read more)

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10/30/2014 5:29:04 AM

Posted To: MBS Commentary

Nine times out of ten, any conversation about trading volume in bond markets is pointless and dangerous when it comes to considering potential mortgage rate movement. Reason being: some people assume that low volume means a move is less valid and then potentially feel like locking into weakness isn't a dire need. The best thing to keep in mind with respect to that is that markets can always move either direction tomorrow and today's volume hardly ever tells you anything about the chances. Here's what volume can tell us though. It can tell us how much markets cared about the movement they just made. This is a look at the past with no comment on the future. With that in mind, volume was surprisingly low in bond markets today. It was lower than yesterday, and what even happened yesterday...(read more)

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10/29/2014 3:03:43 PM

Posted To: Mortgage Rate Watch

Mortgage rates rose to the highest level in 3 weeks after today's Fed Announcement. The move was a two-part process with initial rate sheets being weaker in the morning and mid-day reprices (lenders raising rates) following the Fed. The pace of the movement was moderate, leaving 4.0% intact as the most prevalently-quoted conforming 30yr fixed rate for top tier borrowers, but 4.125% is now much closer than it had been. Many lenders are already there today. It's important to understand that the Fed ending QE and today's rise in rates are not in a direct causal relationship. Market participants unanimously agreed that today would mark the end of the Fed's third round of quantitative easing (QE3) and that part of the announcement was no surprise. It's also important to understand that, apart from...(read more)

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10/29/2014 2:36:00 PM

Posted To: MND NewsWire

Completed foreclosures rose slightly in September CoreLogic said today, but the long-term trend continues to be a relatively precipitous drop from the record high numbers of the last six years. The company's September National Foreclosure Report notes a 4.7 percent increase in the number of homes lost to foreclosure during the month relative to the August number, 46,000 units compared to 44,000. The September total however represents a year-over-year drop of 32.6 percent from 68,000 foreclosures the previous September 2013 and is 61 percent below the number at the peak of activity in 2010. All 50 states posted a double-digit decline in completed foreclosures; Washington, DC had a 7.1 percent increase although it still remained among the areas with the smallest absolute number of completed foreclosures...(read more)

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10/29/2014 11:59:55 AM

Posted To: MBS Commentary

MBS and Treasuries are at their weakest levels in 3 weeks ahead of this afternoon's FOMC Announcement. That's really all there is to it. We haven't had any meaningful market movers, and in fact, the only motivation has come from traders watching other traders. In that regard, "defensive" would be the best way to characterize the bigger trades we've seen. There was an obvious glut of large trade activity from 9:11 to 9:17am in 5 and 10yr Treasuries. This took bonds to their weakest levels, but the volatility is completely insignificant compared to that seen 2 weeks ago, or that which might be on the horizon. While we're technically into our weakest recent levels, it's nothing more than an incidental drift . For instance, Fannie 3.5s are down only 1/32nd on the...(read more)

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10/29/2014 10:11:56 AM

Posted To: Pipeline Press

You don't think things are changing? Apple announced it has signed up 500 more banks in addition to the 6 largest US banks it announced during the launch of its Apple Pay service, which is now available today. In the UK, Lloyds Bank is cutting 9,000 jobs. "Lloyds...wants a new type of branch, complete with iPads and facilitated internet discussion screens, enabling chats with staff who may not be physically in the same branch as the customer." And Walmart has recently announced a new banking initiative called GoBank through which it will offer mobile checking accounts with debit cards in its 4,300 US locations by the end of October. Bank analysts will counter with the line of thought that the most profitable bank customers may not shop at Walmart, but still... Current volumes aren't too shabby...(read more)

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10/29/2014 8:34:20 AM

Posted To: MND NewsWire

Mortgage application numbers during the week ended October 24 backed off a bit from the numbers posted during the week ended October 17 but were still elevated compared to other recent weeks. The Mortgage Bankers Association's (MBA's) Weekly Mortgage Applications Survey for last week reported almost entirely declining numbers but for context we will include the increases from the previous week in which there was unusually high refinancing volume. MBA's Market Composite Index, a measure of mortgage loan application volume fell 6.6 percent on a seasonally adjusted basis from the previous week when it had posted an 11.6 percent increase. On an unadjusted basis the Index was down 7 percent following a 12 percent gain. The Refinancing Index was down 7 percent as well on the heels of a huge 23 percent...(read more)

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10/29/2014 7:54:11 AM

Posted To: MBS Commentary

I worked really hard just now on avoiding the use of the cliche headline opener "all eyes." You see that a lot (no pun intended) when it comes to things like FOMC and NFP. For instance: "All Eyes on FOMC." It's true though . Every market participant cares about the Fed, but many of them only care if the Fed says something surprising. With that in mind, let's talk about what would be surprising in terms of changes in the statement. 1. It would be a massive surprise if the Fed DOES NOT end QE3 asset purchases. Pundit surveys are running well over 95% in that regard. Not only would it be a surprise to see the Fed keep, say, $5 bln a month for now, but it would be a dead giveaway as to their level of concern about 'something' (where the 'something' could...(read more)

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10/29/2014 5:32:12 AM

Posted To: MBS Commentary

Despite one solid attempt to bounce back to unchanged levels this morning, bond markets spent the day in weaker territory. For most of the day this wasn't too offensive as the weakness was fairly well-contained. As the close approached, an ascending trend in yields became apparent. Treasuries and MBS both ultimately closed at the weakest levels of the day. 10yr yields incidentally matched their intraday high from last Thursday. But therein lies a mitigating factor. Yields ONLY made it back to recent highs. They notably did not embark on any new adventure into weaker territory in the 3 and a half days since first hitting 2.30. Not only that, but as of the official 3pm close, they were only up to 2.287. When we add in the fact that stocks were moving higher at a fairly quick pace today, that...(read more)

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10/28/2014 3:43:37 PM

Reuters Business News


Reuters: Business News

WASHINGTON (Reuters) - A smaller trade deficit and a surge in defense spending buoyed U.S. economic growth in the third quarter, but other details of Thursday's report hinted at some loss of momentum in activity.

10/30/2014 9:39:33 AM

NEW YORK (Reuters) - Thomson Reuters Corp on Thursday said more clients of its Financial & Risk business added new products than canceled, the first time since 2008 that net sales were positive in the Americas, Asia and Europe for the news and information company.






10/30/2014 8:56:00 AM

(Reuters) - MasterCard Inc reported a better-than-expected 15.5 percent jump in quarterly profit as a rise in global consumer confidence encouraged its customers to use cards to make purchases, sending its shares up 7 percent.

10/30/2014 8:30:16 AM

MUNICH (Reuters) - Succession is not an imminent topic at Daimler or Volkswagen, the chief executives of both carmakers said on Thursday, adding that any potential candidates would most likely come from within their respective companies.






10/30/2014 8:23:55 AM

BEIJING (Reuters) - A trademark spat between Chinese e-commerce giant Alibaba Group Holding Ltd and rival JD.com flared into public view after JD published an Alibaba letter urging publishers to be careful about advertising in promotions for China's annual "Singles' Day" spree, the world's largest online shopping day.

10/30/2014 8:19:33 AM

(Reuters) - ConocoPhillips, the largest U.S. independent oil and gas company, on Thursday reported higher third-quarter profit from the sale of its Nigerian unit but lowered its fourth-quarter production outlook, sending shares down 1.4 percent.






10/30/2014 8:13:53 AM

NEW YORK (Reuters) - U.S. stocks were mostly flat on Thursday, as a strong read on third-quarter economic growth raised new questions about monetary policy, though strong results at Visa single-handedly put the Dow in positive territory.






10/30/2014 8:09:43 AM

LONDON (Reuters) - U.S. bank J.P. Morgan pays managing directors at its investment bank in London an average of 461,000 pounds ($737,877), substantially more than pay across its rivals, according to a survey.






10/30/2014 7:12:55 AM

WASHINGTON (Reuters) - The number of Americans filing new claims for unemployment benefits rose for a second straight week last week, but remained at levels consistent with a firming labor market.






10/30/2014 6:37:57 AM

DETROIT (Reuters) - Chrysler Group said on Thursday that it was recalling 33,443 light trucks in two separate campaigns to prevent false warnings from the tire pressure monitor systems.






10/30/2014 6:29:29 AM
 
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