Author Archives: maverick

MBS MID-DAY: Just Slightly Weaker as NFP Consolidation Begins

Posted To: MBS Commentary

It's common to see a pre-NFP consolidation in bond markets. This refers mainly to the Monday and Tuesday of NFP week, especially if the Monday is NOT the first trading day of the new month. For this week, that leaves today as the only real "pre-NFP" day . Incidentally, the clock starts tick on Wednesday due to the data that is typically released: ADP and ISM Non-Manufacturing. These are two of the biggest market movers apart from NFP, and they frequently account for a pre-NFP "lead off." Today's consolidation has been fairly tame so far , and arguably began yesterday afternoon after the bond rally had run its course by 12:30pm. As we noted in the morning update on MBS Live, that bounce coincided with a sell-off in Oil running its course. And that just happens to…(read more)

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Source: Mortgage News Daily

Tight Inventories Continue to Spur Price Gains

Posted To: MND NewsWire

The numbers of homes for sale in a few areas of the country have now dropped below a two month supply CoreLogic said today. Prices in cities with these tight inventories have appreciated faster than the rest of the country, but supplies are limited through much of the nation. The company said that its Home Price Index (HPI) for June, shows that nationwide home prices, including distressed sales, were up 6.5 percent compared to June 2014 , the 40 th consecutive month of annual price gains. The index increased by 1.7 percent from May to June. Including distressed sales the peak-to-current change in the national HPI (from April 2006 to June 2015) was -7.4 percent. Excluding distressed transactions, the peak-to-current change for the same period was -4 percent. Thirty-five states and the District…(read more)

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Source: Mortgage News Daily

QM & QRM Report; Closing & Servicing Costs March Higher

Posted To: Pipeline Press

Regina Lowrie from RML Advisors answers the question, “How should we handle the title insurance companies, escrow companies and closing attorneys in our vender management program where the borrower has the right to designate the closing agent?” She points out that all closing agents are considered vendors , and some may be seen as high risk vendors due to their exposure to confidential client information such as social security numbers and banking information. Since this personal information has to be protected, lenders should ensure that the closing agent’s data/security systems are secure and protect the clients’ nonpublic personal information. Lenders should inform the borrower and the buyer’s and seller’s representatives to the transaction about their vendor requirements and timeline expectations…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Last Lull Before Things Get Serious

Posted To: MBS Commentary

Come Wednesday, we will have entered the final approach to Friday morning's NFP release as ADP and ISM Non-Manufacturing data are likely to set the tone. Between now and then, however, there's relatively little on the calendar. Today's only data release that isn't always a complete non-event will be Factory Orders at 10am, and you know what they say about Factory Orders! (It's always a complete non-event). In the meantime, what can we say about the way bond markets have been trading? It's been pretty darn good, which is both promising and scary. Actually, to be fair, it began looking promising a few weeks ago , but has only gathered steam since then. For those of you who are into the moving averages, 10yr yields broke decisively through the 100-day yesterday, thus giving…(read more)

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Source: Mortgage News Daily

Mortgage Rates Moving Into High 3's

Posted To: Mortgage Rate Watch

Mortgage rates continued lower today , adding to an already impressive streak of improvement that began in mid-July. Much of that improvement has come courtesy of increasing concerns over the trajectory of global growth and inflation. When investors downgrade their growth outlook, they often move more money into bonds. Greater demand for bonds brings bond prices higher and rates lower. This was the case today as several pieces of economic data suggested weaker growth and inflation this morning. Markets responded by moving money out of stocks and into bonds. Among the bonds that benefit are the mortgage-backed-securities (MBS) that dictate mortgage rates. With rates already at 2-month lows on Friday, this means the winning streak is simply extended. You’d now have to go back to May 28th to see…(read more)

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Source: Mortgage News Daily

MBS RECAP: Inflation Expectations Dragging Rates Down

Posted To: MBS Commentary

There were a few good years in the middle of the financial crisis recovery where inflation data just didn't matter. Various economic reports could indicate higher or lower inflation, but markets didn't respond. Older dogs who'd lived through the 70's and 80's were confounded by this new world order. But just when everyone was beginning to get on the same page with inflation not mattering, now it matters again! Things are a bit different right now though. The inflation that matters is the kind that might eventually show up and make the Fed wish they'd raised rates soon enough to keep it stably in check. Of course it hasn't shown up yet, so the Fed is forced to look for clues that it might show up in the future. One of those clues is wage growth. That wasn't so…(read more)

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Source: Mortgage News Daily