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Mortgage Rates Highest in More Than a Month After Fed
Posted To: Mortgage Rate Watch
Mortgage rates rose today following the announcement and--more importantly--the Fed's updated economic projections . The Fed holds 8 meetings a year. They release an official policy announcement after all of those. Four of the meetings are "special" and are followed not only by a policy announcement, but also by updated economic projections from Fed members. These projections include an important "dot plot" of the Fed's rate hike expectations. The so-called dots have been more important than the actual announcement on some occasions. While most of today's press coverage will focus on the fact that the Fed finally enacted its plan to shrink its balance sheet. That was widely expected, however. Investors weren't sure how the past few months of economic data and events would affect the rate hike...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 20 Sep 2017 | 2:12 pm
Differences Between Current and Previous FOMC Statements
Posted To: MBS Commentary
(Additions underlined, deletions struck through) Information received since the Federal Open Market Committee met in JuneJuly indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year. Job gains have been solid, on average, since the beginning of the year,remained solid in recent months, and the unemployment rate has declined.stayed low. Household spending has been expanding at a moderate rate, and growth in business fixed investment have continued to expand.has picked up in recent quarters. On a 12-month basis, overall inflation and the measure excluding food and energy prices have declined this year and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 20 Sep 2017 | 11:04 am
Existing Home Sales Distorted by Harvey
Posted To: MND NewsWire
August was yet another disappointing month for existing home sales. The National Association of Realtors® (NAR) says those sales were down for the fourth time in five months, retreating 1.7 percent from July's estimate of 5.44 million to a seasonally adjusted annual rate of 5.35 million units. The August number still eked out a tiny 0.2 percent increase from the August 2016 estimate, but is the lowest rate of sales since then. Analysts had been expecting a slight increase from July, probably based on a 1.5 percent increase in pending sales in July. Econoday reported estimates ranging from 5.350 to 5.550 with a consensus of 5.480 million. Total existing home sales are completed transactions that include single-family homes, townhomes, condominiums and co-ops. Single family home sales were...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 20 Sep 2017 | 7:53 am
Uniform Closing Dataset (UCD) Info; FINRA; Fed Announcement
Posted To: Pipeline Press
UCD Information As announced in September 2016,the Uniform Closing Dataset (UCD) mandate remains September 25, 2017Lenders who can deliver the UCD are expected to adhere to the mandate and submit a successful UCD XML file for all loans being delivered on or after September 25 , 2017 (based on Note Date). However,Freddie Mac and Fannie Mae(the GSEs) are revising its approach to enforcing the UCD delivery requirement. Each GSE's loan delivery system will check for a successful UCD XML file submission, which will result in a "warning" edit if the data are not provided. Lenders should take advantage of these warning messages to ensure they are able to submit a UCD for all loans sold to Freddie Mac or Fannie Mae. The GSEs will work with industry participants over the next several months to help...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 20 Sep 2017 | 7:27 am
Mortgage Apps Tanked Last Week. Was it Rates' Fault?
Posted To: MND NewsWire
Overall mortgage application activity diminished significantly during the week ended September 15, but refinancing continued to hold its own, representing more than half of the mortgage applications received. The Mortgage Bankers Association says its Market Composite Index, a measure of that volume was down 9.7 percent on a seasonally adjusted basis compared to the week ended September 8. The earlier week's data included an adjustment to account for the Labor Day holiday. On a non-adjusted basis, the Composite Index increased 12 percent. "At first glance, we might assume that last week's interest rate spike easily explains the drop in apps," notes Mortgage News Daily's Matt Graham, "but then we see MBA's rate survey only shows a 0.01% rise. It's good to remember that survey rates are going...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 20 Sep 2017 | 5:52 am
MBS Day Ahead: Bonds Ready to Move Either Direction After The Fed
Posted To: MBS Commentary
Much like an actor can get lost in a role and take things a bit too far, bond markets played the part of "a market undergoing a correction" a little too well. As of yesterday afternoon, 8 out of the last 8 business days saw 10yr yields close at higher levels than they opened. Low yields of 2.02 have given way to 2.22+ in just over a week. Zooming out to the bigger picture, if you'd been told 2-3 weeks ago that yields would be over 2.22, you probably wouldn't have minded. After all, that's the technical level we were testing as the last full week of August began. The abrupt feeling of the recent selling spree comes courtesy of the snowball rally that took place after Labor Day. That rally coaxed out all inclined buyers and relied on a short squeeze (sellers forced to cover...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 20 Sep 2017 | 5:33 am
MBS RECAP: Bonds Reaffirm The September Correction
Posted To: MBS Commentary
While MBS managed to remain 1 tick in positive territory today, Treasury yields were higher on the day and the overall mood in bond markets managed to remain downbeat for yet another day. For all intents and purposes, the driving force was simply ongoing "corrective" momentum from the same old correction that's been underway for a week and a half. There were a few economic reports this morning (Housing Starts and Building Permits--stronger than expected and Import/Export prices--higher than expected), but neither had a noticeable impact on bond trading. The 9:30am NYSE open was visually the starting point for today's selling pressure. This reiterates the points above about "corrective momentum" and the unimportance of the econ data. Simply put, traders wore their...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 19 Sep 2017 | 2:33 pm
Rates Steady Near Recent Highs Ahead of Fed
Posted To: Mortgage Rate Watch
Mortgage rates remained unchanged today, on average. This keeps them in line with their highest levels in more than a month, though admittedly, there hasn't been much upward movement since the sharpest leg of the spike ended last Wednesday. Conventional 30yr fixed rates in the "high 3's" remain available for top tier scenarios, but 4.0% is slightly more prevalent now. While there were several economic reports and seemingly important news stories today (both tend to have an effect on rates), bond markets marched to their own beat. Traders were generally getting in position for tomorrow's Fed Announcement. Two weeks ago, the order of the day had been to push rates lower heading into Hurricane Irma weekend. There's been a correction in play since then. From the long-term lows in early September...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 19 Sep 2017 | 1:36 pm
HUD and Census Bureau Report Residential Construction Activity in August 2017
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau jointly announced the following new residential construction statistics for August 2017.Source: HUD Press Releases | 19 Sep 2017 | 11:30 am
Fraud Risk Continues Upward Trend
Posted To: MND NewsWire
Jumbo refinances led the way as mortgage fraud risk posted another gain in the second quarter of 2017. CoreLogic reports that overall risk, as measured by its Mortgage Application Fraud Risk Index, was up 16.9 percent from the second quarter of 2016. The company estimates 13,404 mortgage applications contained indications of fraud, an 0.82 percent incidence , compared to 12,718 applications or 0.70 percent a year earlier. CoreLogic's Mortgage Fraud Report analyzes the collective level of loan application fraud risk the mortgage industry is experiencing each quarter. The report looks at detailed data for six fraud type indicators that complement the national index: identity, income, occupancy, property, transaction, and undisclosed real estate debt. The company said the continued shift from...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 19 Sep 2017 | 10:42 am
Building Permits Regain Footing, Housing Starts Still Struggling
Posted To: MND NewsWire
Residential construction outcomes in August were mixed, with permitting enjoying a strong comeback after more than a 4 percent downturn in July, but housing starts continuing to slide. Residential completions were also down substantially, which was probably weather related. The U.S. Census Bureau and the Department of Housing and Urban Development said that permits for residential construction were up 5.7 percent from the previous month, to a seasonally adjusted annual rate of 1,300,000 units compared to a revised (from 1,223,000) rate of 1,230,000 units. Permits are now running 8.3 percent ahead of their August 2016 rate. Permits bested even the most positive projections of analysts polled by Econoday . They had forecast in a range from 1,200,000 to 1,250,000 units with a consensus of 1,220...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 19 Sep 2017 | 7:03 am
FHA, VA Updates; Ginnie Mae Overview
Posted To: Pipeline Press
Ginnie, FHA and VA News Lender updates regarding Texas and Florida are quieting down slightly, so let's play some catch up on government programs. Ginnie Mae will consider potentially misleading marketing practices involving U.S. Department of Veterans Affairs-backed lenders. Acknowledging concerns U.S. Sen. Elizabeth Warren raised in a recent letter, Ginnie Mae Acting President and Chief Operating Officer Michael Bright said that she is right to be bothered by the potential impacts aggressive mortgage marketing practices could have on veteran borrowers. Bright stated that Ginnie Mae has already taken some steps to address these issues, and announced the creation of a joint "Lender Abuse Task Force," which will work with the VA to crack down on such practices especially for VA IRRRLs. People...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 19 Sep 2017 | 6:15 am
MBS Day Ahead: Pirate Talk Could Be Our Best Option
Posted To: MBS Commentary
Ahoy ye salty dogs sailing the high seas of the mortgage world. Another year has come and gone without any grand preparations for Talk Like a Pirate Day, so these first two sentences will likely be the extent of the allusion, although a phrase or two may slip into today's MBS Huddle video (if you're an MBS Live member and don't know what the Huddle is, avast ye! This be the link ye need . Make sure that "yes" is selected at the bottom, and you'll be availed of the Huddle this afternoon). Down to business... Actually, talking like a pirate could prove to be as interesting as anything the bond market has in store for us today, given that so much of the bigger picture focus remains on tomorrow's FOMC events (announcement, forecasts, press conference). As I see it...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 19 Sep 2017 | 5:54 am
MBS RECAP: Weaker Start With No Major Scapegoats
Posted To: MBS Commentary
Bonds got off to a weaker start on this Fed week, and there weren't any convenient scapegoats in sight. That said, there were a few caveats. Most notable, it was the 2nd lowest volume day of the year for Treasuries, and that's an environment that allows a smaller trading imbalance to have a bigger effect on prices and yields. While we might have hoped the correction that took rates higher last week had run its course, there was still some room to run. 10yr yields pushed up over 2.23% today, rising just over 3bps. While that's the highest level in exactly a month, it's somewhat refreshing to see bonds merely sell-off casually as opposed to getting caught up in a snowball selling spree. Snowball selling wouldn't have been too hard to imagine given the strong performance of...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 18 Sep 2017 | 1:49 pm
Mortgage Rates Continue Pushing Recent Highs
Posted To: Mortgage Rate Watch
Mortgage rates resumed their recent uptrend today, after taking a quick break to end the week last Friday. The result is another push up to the highest levels in just over 3 weeks. The average scenario is being quoted rates that are about an eighth of a point higher compared to the lows seen in early September. The most prevalent top-tier conventional 30yr fixed rates still range from 3.875% to 4.0%, but the latter is increasingly in the spotlight. Context is important when it comes to this recent rate spike. The market movement that preceded it was arguably "too good," with rates benefiting from an unusual combination of geopolitical risk surrounding North Korea and event risk surrounding Hurricane's Harvey and Irma. It's not that markets responded to those events in unexpected ways--simply...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 18 Sep 2017 | 12:55 pm
HUD Announces Disaster Assistance for U.S. Virgin Islands Storm Victims
WASHINGTON - U.S. Housing and Urban Development today announced HUD will speed federal disaster assistance to the U.S. Virgin Islands and provide support to homeowners and low-income renters forced from their homes due to Hurricane Irma.Source: HUD Press Releases | 18 Sep 2017 | 10:30 am
HUD Announces Disaster Assistance for Georgia Storm Victims
WASHINGTON - U.S. Housing and Urban Development today announced HUD will speed federal disaster assistance to the State of Georgia and provide support to homeowners and low-income renters forced from their homes due to Hurricane Irma.Source: HUD Press Releases | 18 Sep 2017 | 10:30 am
Student Debt Undermining Millennial Homeownership
Posted To: MND NewsWire
A new study is providing more evidence that student debt is disrupting the lifecycle of the housing market. The survey, conducted jointly by the National Association of Realtors (NAR) and the non-profit American Student Assistance (ASA), found that an overwhelming majority of millennials with student debt currently do not own a home. They blame this debt for what they typically believe will be a seven-year delay in homeownership. And it isn't just homeownership that is suffering. The survey also revealed that student debt is holding back millennials from financial decisions and personal milestones. These include adequately saving for retirement, changing careers, continuing their education, marrying and having children. Despite being in their prime homebuying years, only 20 percent of the survey...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 18 Sep 2017 | 9:21 am
Builder Confidence Loses August Momentum
Posted To: MND NewsWire
Hurricanes Harvey and Irma, which ravaged Texas and Florida respectively, are taking at least some of the blame for diminishing builder confidence in the new home market. The National Association of Home Builders (NAHB) said the NAHB/Wells Fargo Housing Market Index (HMI) dropped 3 points this month to 64. The August HMI was also revised down from 68 to 67. The HMI had made a strong recovery in August, rising 4 points, so some deflation was anticipated. The consensus of analysts surveyed by Econoday was for a 2-point decline to 66. The range of estimates however, from 53 to 68, was both unusually broad and pessimistic. "The recent hurricanes have intensified our members' concerns about the availability of labor and the cost of building materials ," said NAHB Chairman Granger MacDonald. "Once...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 18 Sep 2017 | 7:36 am
Irma Triples Harvey's Threat to Mortgage Lenders
Posted To: MND NewsWire
In the literal wake of a second major hurricane in as many weeks, Black Knight Financial Services is again warning of some potentially disastrous outcomes for mortgage guarantors . The company issued a report on September 11 estimating there was the potential of losses to mortgaged properties in Texas and Louisiana at $179 billion from Hurricane Harvey. Now they are back again with bad news about Hurricane Irma. Irma hit the U.S. Virgin Islands, rather than hitting Miami as expected, and slammed into Florida's Cudjoe Key, making yet another landfall at Marco Island at category 3 windspeeds. Because of its late westerly shift and the hours it spent churning offshore of Florida's west coast the hurricane caused major storm surges on both coasts, affecting coastlines as far north as South Carolina...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: Mortgage News Daily | 18 Sep 2017 | 6:29 am
