Mortgage and Finance


Mortgage News Daily

Posted To: MBS Commentary

Most of the conceptual analysis of today's action was already covered in the Mid-Day . There were no significant developments into the afternoon, but bond markets continued to rally in linear path. If there had been any argument to be made for connectivity between stock prices and bond yields, it went out the window in the afternoon as stocks swung wildly lower and higher without so much as a passing glance from bond markets. 10yr Treasuries hit their official 3pm close 3bps lower at 2.58. Fannie 3.5s are 9 ticks higher and still climbing with an hour left. These levels are notably in line with those seen before this week's FOMC events. In fact, MBS just ticked to their best levels of the week. Most lenders released positive reprices in the afternoon, but rates remained in line with...(read more)

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9/19/2014 2:00:47 PM

Posted To: Mortgage Rate Watch

Mortgage rates moved slightly lower today after hitting the highest levels in more than 4 months yesterday. There were no significant economic events providing guidance today. This actually makes the strength more meaningful as the absence of big-ticket events left bond markets to their own devices. In that sense, the rally was more of a conscious choice. Rate quotes fell back in line with those seen on Monday. Most borrowers will see the changes in the form of closing costs as the move wasn't big enough to affect rates themselves. 4.25% remains to most prevalently quoted conforming 30yr fixed rate for top tier scenarios. This week ends on a bittersweet note. On one hand, Friday's loan costs improved at the best pace of the entire month. On the other hand, not only was it a small improvement...(read more)

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9/19/2014 1:18:00 PM

Posted To: MND NewsWire

In its latest Mortgage Lender Sentiment Survey Fannie Mae detected an interesting switch in attitudes and opinions in two areas. The third-quarter survey, the third since Fannie Mae originated the series last March, found that large lenders expect to see their underwriting standards ease over the next three months. Perhaps not coincidentally, the share of lenders of lenders, regardless of the size of the institutions they represent, who expect the demand for purchase mortgages to go up over the next three months dropped by 26 to 33 percentage points depending on the mortgage type. The largest decline in expectations was for GSE-eligible loans where the percentage of respondents expecting borrower demand to increase fell from 54 percent in the second quarter to 21 percent. The other categories...(read more)

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9/19/2014 12:25:58 PM

Posted To: MBS Commentary

Both MBS and Treasuries are back in line with trading levels from the close of business on Tuesday. Today's gains have been moderate during the domestic session, but border on extreme if we cound the overnight session. For example, 10yr yields were as high as 2.655 and are now down into the 2.5's. That's not the kind of movement we typically see on a day without any significant events to motivate trade. So what's motivating trade then? As I said in Wednesday's commentary after the Fed announcement, there have been other factors in play that could easily outweigh the anticlimactic response to the Fed. Several of these factors are now conspiring to give us a boost. We'll talk more about these in the coming week, but here's a short list for now. First up on the 'short'...(read more)

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9/19/2014 10:52:47 AM

Posted To: Pipeline Press

Arrgghh... I read in Pirate Quarterly that you could take the entire human population of the earth, put it inside of Texas, and it would still be less crowded than New Yorrrrk City. (So I checked. NYC is 469 square miles, 8.3 million people, so 17,700 people per square mile! Texas is 268,820 square miles, which at 17,700 people per square mile would accommodate 4.75 billion people.) But there are 7.2 billion of us. Fortunately Alaska is twice the area of Texas, so at least we can say one state would hold the earth's population at the same density as Manhattan. For something a little more relevant, check out this cool mortgage map . It shows lending trends over the last several years here in the United States (click on "interactive map" in the text to watch it). In 2002 I remember looking out...(read more)

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9/19/2014 8:41:13 AM

Posted To: MBS Commentary

Yesterday's session was too close to call as far as being a positive or negative epilogue to Wednesday's FOMC day. While it's always positive to not be losing ground in a convincing way, it's pretty negative to be convincingly holding ground when the last 3 weeks have seen almost nothing but weakness. In other words, yesterday went a long way toward solidifying current levels as something more than a temporary diversion from recent low rates. MBS charts speak to this phenomenon even better than Treasuries. Typically, 10yr Treasuries make for the best technical analysis of trends in mortgage rates even though rates are ultimately dictated by MBS (due to volume, liquidity, futures markets, and not being affected by "the roll" in the same way). This time around, however...(read more)

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9/19/2014 5:34:01 AM

Posted To: MBS Commentary

Today turned out to be spooky, or at least 'uninformative' from a market-watching standpoint. Here we have an active trading day following a hotly-anticipated FOMC day and trading levels barely budge. Historically, these "day after big FOMC Announcement" days can be some of the biggest movers. The fact that we didn't get anywhere close to that sort of movement today suggests a good amount of uncertainty about the response to recent events. That might seem like an obvious statement, but it's important in this case because the burgeoning consensus was that the next big market move would be all about the Fed. Now the Fed has come and gone and markets haven't moved! Sure, they moved yesterday, but to no weaker levels than those seen 4-5 days ago. In addition, economic...(read more)

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9/18/2014 3:01:47 PM

Posted To: Mortgage Rate Watch

Mortgage rates only moved slightly higher today for most lenders. Some lenders were unchanged from yesterday, but on average, rates inched up to match their highest levels since May 1st. There was no significant underlying market movement, which is interesting considering yesterday's Fed Announcement was expected to do more to stir up the action. Instead, the mortgage-backed-securities (MBS) that underlie mortgage rates simply held flat today after losing only a moderate amount of ground yesterday. While we technically moved from "1.5 month highs" to "4.5 month highs," it's important to note the two were separated by a mere 0.01% in terms of effective interest rate. The actual rate quotes going out today would be the same as yesterday in most cases, but with marginally higher closing costs...(read more)

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9/18/2014 1:49:00 PM

Posted To: MND NewsWire

The Federal Housing Finance Agency's (FHFA) Office of the Inspector General (OIG) has released an audit critical of the FHFA for decision making leading to changes in the Representation and Warranty Framework for Fannie Mae and Freddie Mac, the government sponsored enterprises (GSEs) under FHFA conservatorship. Those changes were a component of FHFA's Contract Harmonization Project initiated in June 2011 to improve the GSEs' contracts and contracting processes with its seller servicers. As a result of discussions between FHFA and the GSEs the Agency determined that contract harmonization was necessary and appropriate and on January 19, 2012 directed the GSEs to align their contracts in eight areas, two of which were priorities with 180 day deadlines: 1) Consistent and precise benchmarks and...(read more)

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9/18/2014 1:19:39 PM

Posted To: MND NewsWire

Housing starts 'plummeted' in August the Census Bureau said today, falling 14.4 percent from the revised seasonally adjusted annual rate of 1,117,000 units in July to 956,000 units. The abrupt change, however was driven by a 31.5 percent decline in initial construction of buildings containing 5 or more units . Single-family construction starts were down only 2.4 percent . Not only that, but last month's numbers were revised significantly higher. The August New Residential Construction report, jointly issued by Census in conjunction with the Department of Housing and Urban Development, revised the July housing starts upward from the original 1,093,000 annual pace reported last month, already a 15.7 percent increase over June. Despite the decrease in starts in August, the seasonally adjusted...(read more)

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9/18/2014 1:03:58 PM

Reuters Business News


Reuters: Business News

SEOUL (Reuters) - Hyundai Motor and two listed affiliates did not seek board clearance for the size of their record $10 billion bid for a plot of land in Seoul, more than triple its appraised value, four board members of the companies told Reuters.






9/20/2014 4:52:44 AM

PARIS (Reuters) - Air France pilots have voted to extend their week-long strike over cost cuts and plans for its Transavia unit by a further four days until Sept. 26, the head of the SNPL union said on Saturday.

9/20/2014 4:51:10 AM

CAIRNS Australia (Reuters) - Financial leaders of the Group of 20 top economies remain committed to chasing higher global growth, but were divided on how to achieve it as Germany pushed back at calls from the United States and others for more immediate stimulus.






9/20/2014 4:39:07 AM

NEW YORK (Reuters) - The asset with the greatest prowess of late has been the U.S. dollar, and if its rally continues, it threatens to eat into the earnings of multinational companies.






9/20/2014 2:46:40 AM

NEW YORK (Reuters) - Alibaba Group Holding Ltd's shares soared 38 percent in their first day of trading on Friday as investors jumped at the chance for a piece of what is likely to rank as the largest IPO in history, in a massive bet on China's burgeoning middle class.

9/19/2014 6:30:59 PM

NEW YORK (Reuters) - If Larry Ellison sailed off on his yacht for good tomorrow, who would really run Oracle Corp ?






9/19/2014 5:24:24 PM

(Reuters) - A federal appeals court on Friday voided RadioShack Corp's class-action settlement with customers who objected to its putting credit and debit card expiration dates on receipts, saying the benefits of the accord appeared too small relative to the proposed legal fees.

9/19/2014 4:31:34 PM

NEW YORK (Reuters) - A U.S. appeals court on Friday dismissed an appeal by Citigroup Inc and Argentina of a judge's order blocking the bank from processing payments on $8.4 billion in bonds issued under the country's local laws following its 2002 default.






9/19/2014 4:02:29 PM

NEW YORK (Reuters) - Alibaba Group Holding Ltd's shares soared 38 percent in their first day of trading on Friday as investors jumped at the chance for a piece of what is likely to rank as the largest IPO in history, in a massive bet on China's burgeoning middle class.






9/19/2014 3:28:47 PM

LONDON/FRANKFURT (Reuters) - French low-cost telecom operator Iliad has set a mid-October deadline to decide whether to improve its bid for T-Mobile US or walk away as it faces resistance from seller Deutsche Telekom, several people familiar with the situation said.

9/19/2014 2:47:51 PM
 
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