Posted To: MBS CommentaryAfter the initial spikier responses to this AM's "Dubai Drama" prices are settling into a fairly logical range with recent highs and lows lying within highs and lows from the last two days. Even then, it wouldn't much matter if that range were catastrophically broken given the amount of liquidity and volume in play on Black Friday. 4.5 MBS are up 1 tick at the moment at 102-11. 4.0's are up 6 ticks at 100-03. The 10yr tsy is up 9 ticks, dropping the yield to 3.23. The S&P is almost halfway back to unchanged on the day at 1095+. We'll get back to you one more time before the early close today……(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Mortgage mods for profit
Mortgage rates have held fairly steady since the middle of last week.
MBS ALERT: Better Than Expected Housing Data Pushes Rates Higher
Posted To: MBS CommentaryNew Home Sales data was just released…better than expected findings were reported. In October… Single-Family Home Sales rose 6.2% to an annual rate of 430,000 sales. Much better than the market's expectation for 410,000 annual sales and 25,000 units higher than the 405,000 pace reported in September At the current annual pace of sales, New Home Supply will last for 6.7 months….the lowest amount of supply since December 2006. The better than expected read on the health of housing has pushed 10yr yields up 2bps to 3.33%…and pulled "rate sheet influential" MBS prices lower. Beware of chopatility. Pricing may be delayed and some lenders may even reprice for the worse…….(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
MBS OPEN: Flight to Safety Leads Rates Lower
Posted To: MBS CommentaryThe FN 4.0 is +0-09 at 100-06 yielding 3.989% and the FN 4.5 is +0-03 at 102-13 yielding 4.206%. The secondary market current coupon is 3.989% . I thought about adding the FN 3.5 into the current coupon blend, but there isn't much of a market for FN 3.5s so I am letting the FN 4.0 carry the entire weight of the calculation.The more important thing to note is that MBS are being outperformed by flight to quality benefited benchmarks. The CC is now +76/10yr TSY and +66/10yr swap…rate sheet influential yield spreads are wider. Stocks are weaker after Dubai's Supreme Fiscal Committee announced they would ask creditors of Dubai World, the emirates investment arm, to defer for six months at least some of $60 billion owed to them. The SHANGHAI closed -2.36%, HANG SENG -4.84%, TOPIX -2.24…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Loan Application Activity: Refinances Down 9.5%. Purchases Up 9.6%
Posted To: MND NewsWireThe Mortgage Bankers Association today released the Weekly Survey on Mortgage Application Activity for the week ending November 20, 2009. The Mortgage Banker's application survey covers over 50% of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. A rising trend of mortgage applications indicates home buying interest is increasing, a positive for the housing industry and economy as a whole. Furthermore, in a low mortgage rate environment, a trend of increased refinance applications implies consumers are seeking out a lower monthly payments which can result in increased disposable income and therefore more money to spend on discretionary items…or just an opportunity…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Mortgage Rates Near Record Lows. Locking on Application. Econ Data Recap
Posted To: Mortgage Rate WatchRates rallied yesterday following a strong 5 year note auction. This helped pave the way for higher MBS prices and lower mortgage rates. By day's end MBS were testing historic price highs and lenders were repricing for the better. To remind readers, as MBS prices move higher, lenders are able to pass along lower mortgage rates. While the economic calendar is very busy today, this will be last the session of the week in which economic data is released as markets will be closed on Thursday and open for a half day on Friday. Because there was so much to absorb this morning, I am going to do a quick run through of all the data. This morning the Mortgage Bankers’ Association released their weekly applications index which tracks the weekly change in the amount of loan applications at major…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
A successful MHA refi
A note, sent yesterday, from a reader named Matthew.
GSE Delinquencies Spell Trouble for Housing Values
Posted To: Voice of HousingFannie Mae’s rise in delinquencies spells trouble for housing values and the economy overall. As unemployment rises and investor confidence continues to waver, we likely face an economic stall that will require further government intervention. That won’t be easy politically, given that the American people are clearly expressing their bailout fatigue….(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
MBS AFTERNOON: Rallying Near All Time Highs After FOMC
Posted To: MBS CommentaryOn only several occasions has the 4.5 MBS closed any higher than it is right now. The 4.5 is up 10 ticks on the day at 102-10. This is actually higher than the period of extreme stability and extremely high prices during the spring where the 4.5 topped out at 102-07. At this point, we'd have to go back to mid-March for similar prices. And even though we're looking at apples and oranges to some extent by comparing intraday prices with closing prices, 3pm marks are right around the corner… We've discussed the fact that tsy's are no where near their all time best levels given comparatively wider spread earlier in the year. In other words, it's not so much that the RATES market is at all time low yields, but rather, MBS have tightened so much for so long that less heady levels…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
