Thursday, 29 October, 2020

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Category: Mortgage News Daily

Category Added in a WPeMatico Campaign


The Mortgage Bankers Association (MBA) says there was little change in mortgage application activity during the week ended October 16. MBA’s Market Composite Index, a measure of mortgage loan application volume, dipped 0.6 percent from the prior week on a seasonally adjusted basis and was down 1.0 percent unadjusted. Refinancing was also flat. The Refinance Index increased 0.2 percent from Read more…


There have been reasons to fear a momentum shift in bonds for several weeks now.  Here’s how we discussed it at the beginning of October: “It’s never a bad idea to consider risks on the road ahead–especially when things start deteriorating at the beginning of the month. We often see a shift in momentum with a new month when the Read more…


If you watch the news long enough, you see all kinds of interesting things. Cracker Barrel is adding alcohol to its menu? Yup! And you must watch this clip with Stephen Colbert working out with, and interviewing, the Notorious RBG (“Is a hot dog a sandwich?”) a few years back. We watched Lee Farkas be released from prisonafter only 9 Read more…


One of my favorite pastimes is debunking the notion that stock prices and bonds yields ‘always’ correlate.  Years of indoctrination from the conventional wisdom of money managers have done us no favors as market watchers.  Even if you don’t invest or actively make decisions about your 401k allocation, you’re still likely familiar with the notion of moving out of stocks/bonds Read more…


RCIII writes, “I don’t know about you, but I’m ready for some precedented times.” But Tom Petty wrote, “Well, the good old days, may not return… And the rocks might melt, and the sea may burn.” Let’s hope that doesn’t happen, aside from the occasional volcano, as there are plenty of other volatile, unpredictable human-related events occurring around the world. Read more…


Coronavirus obviously ushered in an era of record low rates.  The ongoing challenges and uncertainties are fairly well understood.  They have a wide spectrum of possible outcomes.  As far as we can see at the moment, the baseline outcome involves permanent job losses on a large enough scale to imply a broad shift in economic output.  In turn, that shift Read more…


eClosing, Broker, Servicing Products; USDA Rural Tidbits; Forbearance Stats Improving Originators, as Deb from Virginia reminded me, are currently like ducks: cool and calm on the surface, paddling frantically underneath. Originators like low rates, but not if their clients can’t qualify for a loan. Furloughs are becoming permanent for many companies. U.S. equity indexes might be trading substantially up on Read more…


MBS Day Ahead: “Flat” is an Understatement. What Changed? Recent trading activity lies in stark contrast to the drama seen earlier in 2020.  Even at the beginning of June, bonds still had an interesting (and scary, at first) story to tell as yields spiked in response to stronger econ data and coronavirus hopes.  Both of those factors remain in play, Read more…


Rates are low. Unless coronavirus wins, rates should continue to gradually move higher, but not in a straight line.  At times (like today), we may see the mortgage market weaken while Treasuries improve.  Today’s video breaks that down in easily digestible detail. Econ Data / Events Market Movement Recap 08:43 AM Bonds began the overnight session fairly flat but popped Read more…


Coronavirus hit markets with unprecedented force in March. Stock prices and bond yields sank.  When the outlook grew less dire, markets began moving back in the other direction.  As quarantine measures ease, fear surrounding a second wave of COVID-19 is pushing back on the recovery in markets. Let’s quantify the fear using daily COVID-19 case counts in several key states.   Read more…


Interest rates on closed loans continued to decline in April, falling from 3.65 percent in March to 3.48 percent according to the Origination Insight Report from Ellie Mae. That prompted another surge in refinancing, with that portion of originations jumping from 55 percent in March to 65 percent. The refinancing share of conventional loans also rose 10 percentage points to Read more…


Maybe all of the talk about ending the GSE’s long term incarceration in conservatorship is more than talk this time. Earlier this week both Freddie Mac and Fannie Mae announced they would be issuing Requests for Proposals (RFPs) seeking to hire financial advisors to that end. Then, late Wednesday, the Federal Housing Finance Agency (FHFA), the GSE conservator, said it Read more…


There are now two entities tracking forbearance statistics on a regular basis, the Mortgage Bankers Association (MBA) and Black Knight. The information they are providing is critical, and we did summarize both reports last week, but covering both is probably overkill. Until one report proves to be measurably more informative than the other or we find a way to combine Read more…


AE Jobs; LOS, Correspondent Products; Approaching Webinars; Federal Reserve’s Recent Actions Another stimulus package is in the headlines but no one is talking about inflation being a concern with near-term oil futures prices actually below zero. Oil producers are in a tight spot. And when in a tight spot it is important to panic. Uh, I mean, not panic. It Read more…


Who knows what tomorrow will bring? At least for today we have some welcome good news from the National Association of Realtors® (NAR). Existing home sales, which declined slightly in January, enjoyed a spring-market explosion in February. NAR said sales of pre-owned single-family houses, town houses, condos, and cooperative apartments rose 6.5 percent compared to the previous month. Sales were Read more…