Saturday, 19 October, 2019

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Category: Mortgage News Daily

Category Added in a WPeMatico Campaign


Last week brought the pain.  It was the worst single week for the bond market (if we count MBS) since 2013.  Although this week won’t break any records, it was a refreshing change of pace, with almost every day seeing decent improvement.   Today’s gains were the best, but also the most serendipitous.  A seemingly insignificant headline about Chinese delegates cancelling Read more…


What a difference a week makes!  At the end of last week, things were pretty grim, with mortgage rates having just seen their worst single week since 2013.  The uplifting caveat at the time was that such bouts of nastiness are not that uncommon in the wake of ultra strong performances (such as the entire month of August–the best single month since Read more…


The Mortgage Bankers Association (MBA) is anticipating an increase in new home sales in August.  The organization’s Builder Application Survey found the volume of applications to finance the purchase of newly construction homes was 33 percent higher than in August 2018 although there was a downtick of 0.2 percent month-over-month. The numbers do not include any adjustment for typical seasonal Read more…


The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) increased 1 point in September.  Along with an upward revision to the August number, that carried the HMI to its highest level of the year.  The September reading was 68 and the August HMI was revised from 66 to 67. The index is a measure of builders confidence Read more…


For readers who deny climate change is real, natural or manmade, sinking cities around the world (including Houston and New Orleans) can be attributed to groundwater issues (public and private wells pulling water out of aquafers), another long-term trend that lenders could worry about, or at least be aware of. But one thing that lenders are not worried about are Read more…


Congratulations to Hawaii which became a state fifty years ago today. We’ve had plenty of economic cycles, small and large, in fifty years, although in general rates have been coming down since 1981. And we’ve had a flat or inverted U.S. yield curve for several months. Inverted yield curves don’t cause a recession: Two consecutive quarters of negative growth is Read more…


Residential construction has been famously slow for several years and some new analysis of Census data by the National Association of Home Builders (NAHB) shows that the lack of robustness is shared in the custom home sector.  In an Eye-on-Housing blog article, Robert Dietz, NAHB Senior Vice President and Chief Economist says custom home building has been effectively flat over Read more…


The volume of mortgage applications continued to be shored up by refinancing during the week ended August 16, but overall activity was down. The Mortgage Bankers Association (MBA) said its Market Composite Index slipped 0.9 percent on a seasonally adjusted basis, perhaps not surprising after it soared 21.7 percent the previous week.  On an unadjusted basis the Index fell by Read more…


Bonds were breathing easy by the time the domestic session got underway.  Before that, they kicked off the overnight session in lower yield territory.  Modest gains meant a friendly break below the potentially troubling resistance trend that had developed over the past 2.5 days.    Pictures are worth more than words here, so here is an hourly 10yr candlestick chart as Read more…


Posted To: MBS Commentary If yesterday was marked by rather aggressive comments by Fed’s Williams (aggressive enough to convince a few market participants that the Fed might cut by 50bps at the end of the month), today was marked by the retraction of those comments. Well, at the very least, that was the only relevant development of the day, and Read more…


Posted To: Mortgage Rate Watch Mortgage rates Moved just slightly lower today, despite some push back from underlying bond markets. Typically, weakness in the bond market (like the kind we saw today) corresponds to rising rates–even if only a modest amount. The compensating factor today was the timing of yesterday’s bond market gains. Simply put, there is a bit of Read more…


Posted To: MBS Commentary In the day just passed, bonds did an admirable job shaking off the ill effects of a significantly stronger Philadelphia Fed Manufacturing Business Outlook Survey (aka “Philly Fed”). This report is a solid and fairly consistent market mover. It beat its forecast by the largest amount since 2009. Those facts alone are pretty scary for bonds, Read more…


Posted To: MND NewsWire The so-called GSE Patch for the Consumer Financial Protection Bureau’s (CFPB) 2013 Ability-to-Repay (ATR) and Qualified Mortgage (QM) rule (Rule) is scheduled to expire in January 2021 (earlier if the government sponsored enterprises (GSEs) are released from conservatorship.) The Patch created a temporary category under the ATR and QM rule under which loans eligible for purchase Read more…


Posted To: Pipeline Press Some people pray for ice cream, and their prayers will be answered as this Sunday is National Ice Cream Day. An MLO prayer? “Dear Lord, just give me one more refi boom. I promise to save my money this time.” At the lender level there is plenty of maneuvering going on. Lenders are busy re-hiring ops Read more…


Posted To: MBS Commentary Bonds began the day in roughly unchanged territory. On the one hand, that was impressive considering the lack of substance underlying yesterday’s rally. On the other hand, that lack of substance meant we were at risk of a bigger reaction to the Retail Sales data. Retail Sales came out stronger than expected and bonds quickly retreated Read more…