Mortgage and Finance


Mortgage News Daily

Posted To: MBS Commentary

Nothing has materially changed from the Mid-Day recap, so for the nuts and bolts of today's rally, that would be the best place to get caught up: MBS MID-DAY: Everyone Loves Bonds! Except Greek Bonds! You'll notice that both titles contain some form of "love," and that's really the best way to characterize the market's infatuation with and lust for strong sovereign debt. Guaranteed tradeflows into German Bunds (and the rest of the Eurozone) are a big help, but more than that, the absence of inflation and ongoing global growth concerns are increasingly unmanageable problems. And bonds are one of the only ways to deal with such problems. Eurozone inflation came in at -0.6% this morning. German Retail Sales missed estimates (.2 vs .4 forecast). US GDP came in lower than...(read more)

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1/30/2015 4:29:14 PM

Posted To: Mortgage Rate Watch

Mortgage rates moved lower today at their fastest pace since January 14th. Rates sheets moved well past recent lows and back to levels not seen since May 10th 2013. That was the day that the Wall Street Journal's Hilsenrath suggested the Fed was mapping an exit from stimulus , which sent markets into the tailspin that was effectively the prologue to the taper tantrum. It's amazing, or at least interesting to consider that asset purchases have now been fully phased and that a rate hike is a much more immediate threat, yet rates are back to where they were before markets really began adjusting for all that "stuff." That's the power of global economic turmoil and a troubling lack of inflation for core economies. The specific result today is the greatly-increased prevalence of 3.5% as a conforming...(read more)

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1/30/2015 2:51:00 PM

Posted To: MND NewsWire

When Federal Housing Finance Agency Director Melvin L. Watts testified before the House Financial Services Committee early this week he said that FHFA had notified Fannie Mae and Freddie Mac that it was reversing suspension of contributions to affordable housing funds which the GSEs were required to make prior to being placed in conservatorship. The suspension was authorized by the Housing and Economic Recovery Act (HERA) in 2008. On Friday the Department of Housing and Urban Development (HUD) clarified how those funds would be used with publication in the Federal Register of an interim program rule for the National Housing Trust Fund (HTF). HTF is a new production program designed to work with other existing programs to increase and preserve the supply of decent, clean and safe affordable...(read more)

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1/30/2015 2:32:39 PM

Posted To: MND NewsWire

As it said it would, the Consumer Financial Protection Bureau (CFPB) has taken steps to assist small lenders , particularly those in rural areas, comply more easily with the new mortgage rules that took effect at the beginning of last year. Changes were proposed on Thursday to the ability-to-repay rule and its category of loans called Qualified Mortgages (QM) which CFPB said would, if enacted, increase the number of financial institutions able to offer certain types of mortgages in rural and underserved areas and help small creditors adjust their business practices to comply with the new rules. Ability-to-repay requires that lenders generally make a reasonable and good faith determination that a borrower is able to pay back a loan. Loans that qualify as QMs are presumed to comply with ability...(read more)

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1/30/2015 2:27:35 PM

Posted To: MND NewsWire

The topic of income inequality is, as they say, trending, and this has moved CoreLogic to look at the nature of incomes and homeowners. In a recent article in the company's Housing Trends Blog, principal economist Kathryn Dobbyn talks about a new CoreLogic Index and the questions it is designed to answer. The index is based on the company's loan level database and measures monthly median incomes derived from debt-to-income (DTI) ratios for households obtaining mortgages. Data, which was limited to fully documented, owner-occupied, single-family originations, was used to create both an inflation-adjusted and a non-inflation adjusted median income time series from January 2000 to September 2014. An index value of 100 equals the median borrower income for loans originated in 2000 for each index...(read more)

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1/30/2015 2:26:27 PM

Posted To: MBS Commentary

The overnight session was orderly and positive for Treasuries. Yields continued mechanically grinding lower from yesterday's bounce at 1.785 (10yr Treasuries). Early domestic traders piled on to the rally , with month-end index buyers getting in before further potential price increases. This made for a trend that was largely intact before the weak economic data at 8:30am, though the data did provide a bit of a boost. Bonds looked to be bouncing with stocks at the cash open, but held their ground as stocks topped out. The next leg of the rally followed Greek headlines that effectively increased the odds of a Eurozone exit. Greek bonds tanked and German bonds soared . Treasuries didn't take too much part in that move, but it did spill over to some extent. More than anything, there's...(read more)

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1/30/2015 12:13:14 PM

Posted To: Pipeline Press

The U.S. Census Bureau has published some facts featuring the metro areas represented by the two teams playing in Super Bowl XLIX (the New England Patriots and the Seattle Seahawks). In the Boston area, home to the Patriots, 45% of Boston residents are 25 and older have a bachelor's degree and 91% had graduated from high school. This compares favorably to the national figures of 30% and 87%, respectively. In Seattle 39% of residents who are 25 and older have a bachelor's degree or higher. The median home value of owner-occupied homes in Boston is $363k, Seattle $308k, compared to the national median of $174k. The median household income in Boston is $73k compared to the national median of $52k and $67k for Seattle. Reports on the death of the refi market are exaggerated. There's talk of continual...(read more)

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1/30/2015 9:48:58 AM

Posted To: MBS Commentary

The last trading day of the month for bond markets is more interesting than average in its own right. Money managers are busy making sure their holdings match certain indices. For bond market participants, that's typically some flavor of Barclay's index . There's no secret place where month-end "index buying" is reported or tracked, so onlookers are left to rely on secondhand reports or simply deduce based on trading activity. To that end, both deduction and secondhand reports suggest we've seen a fair amount of month-end buying come through already over the past two days. But we also probably haven't seen the last of it. Yesterday's trading set us up for a nice potential line in the sand to watch for it today. This came in the form of a simple pivot point...(read more)

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1/30/2015 6:32:16 AM

Posted To: MBS Commentary

"Inside day" is a good little piece of market jargon. It refers to a day of trading where prices, yields, or whatever you want to chart fall INSIDE the high and low from the previous day. So quite simply, if the orange lines in the chart below (today's range) fall inside the white lines (yesterday's range), it's an inside day. As you can see, that wasn't even a close call today, and in fact trading levels held inside the post-FOMC range from 2pm-2:30pm! When an entire day's range falls within 30 minutes of movement from the previous day, markets are not trending. They are consolidating or less frequently, truly conflicted about the next move. It's possible that bond markets are conflicted here, but after today, they'd have have to lose some serious ground...(read more)

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1/29/2015 3:46:31 PM

Posted To: Mortgage Rate Watch

Mortgage rates were steady to slightly higher today on average. Some lenders were actually slightly lower, but they were the exception. In contrast to yesterday, the bond markets that underlie rate movements were exceedingly calm, and what little movement there was came in measured doses. This sort of low-altitude, sideways bounce is a fairly common occurrence following a bigger move lower in bond markets. The distinction between bond markets and mortgage rates is important here, because mortgage lenders haven't been able to pass along all of the gains implied by trading levels. If markets manage to calm down a bit, that means rates have some room to improve even if trading levels simply hold steady. That process can only happen gradually over multiple days and could easily be thrown off by...(read more)

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1/29/2015 2:53:00 PM

Reuters Business News


Reuters: Business News

DETROIT (Reuters) - Honda Motor Co Ltd on Friday said it has confirmed that a Takata Corp air bag inflator ruptured in a Jan. 18 crash in Texas that killed the driver.

1/30/2015 6:50:55 PM

NEW YORK (Reuters) - U.S. stocks closed down on Friday after a volatile session as investors worried at the end of a rough month for the market about weak U.S. growth data and whether instability in Europe could hurt corporate earnings in the United States.






1/30/2015 6:29:58 PM

WASHINGTON (Reuters) - Food distributor Sysco Corp and its biggest rival, US Foods Inc , have offered to sell a smaller competitor 11 facilities in order to convince skeptical antitrust regulators to approve their $3.5 billion merger, a source briefed on the matter told Reuters.

1/30/2015 6:00:58 PM

DETROIT (Reuters) - Honda Motor Co on Friday said it has confirmed that a Takata Corp air bag inflator ruptured in a Jan. 18 crash in Texas that killed the driver.






1/30/2015 5:34:46 PM

WASHINGTON/SAN FRANCISCO (Reuters) - AT&T Inc spent close to half the total in the record-setting U.S. sale of airwaves for mobile data, with Dish Network Corp spending heavily to manage a surprise win at No.2 ahead of Verizon, results showed on Friday.

1/30/2015 5:27:40 PM

NEW YORK (Reuters) - U.S. stocks closed down on Friday after a volatile session as investors worried at the end of a rough month for the market about weak U.S. growth data and whether instability in Europe could hurt corporate earnings in the United States.






1/30/2015 5:00:01 PM

(Reuters) - Shares of Shake Shack Inc more than doubled on Friday, putting a nearly $2 billion price tag on the small cult hamburger chain, in a huge bet that its growth can match top performers in the crowded "fast-casual" dining space.






1/30/2015 3:59:27 PM

NEW YORK (Reuters) - Oil prices roared back from six-year lows on Friday, rocketing more than 8 percent as a record weekly decline in U.S. oil drilling fueled a frenzy of short-covering.






1/30/2015 3:28:39 PM

HOUSTON (Reuters) - Exxon Mobil Corp , the world's largest publicly traded oil company, has changed its U.S. employment policies to prohibit discrimination based on sexual orientation and gender identity as now required by federal law.






1/30/2015 3:21:51 PM

WILLISTON, N.D. (Reuters) - Chevron Corp , the second-largest U.S. oil producer, reported a higher-than-expected quarterly profit on Friday as sales of chemicals, lubricants and other refined products helped offset plunging crude prices .






1/30/2015 1:36:24 PM
 
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