MBS Day Ahead: Bonds Reeling From Inflation Data and Waiting on 10yr Auction

Posted To: MBS Commentary

After last Friday's weaker jobs report, bonds rallied at first, but then bounced into weaker territory in just a few hours. That failure meant bond yields ran the risk of treating 1.53% as a technical floor. It also meant 1.62% stood a greater risk of being challenged, if not broken. Yields edged up to 1.62% yesterday and now today's huge CPI number made it an easy call to jump significantly higher. The afternoon's 10yr auction serves as vote on whether or not to find support at the 1.68% ceiling or proceed to the next technical level at 1.75. Those who follow along fairly closely should have eyebrows raised right now because we've been steadfast in our dismissal of inflation as a market mover for more than a year. But those who follow along super duper closely know that inflation…(read more)

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Source: Mortgage News Daily

MLO, AE Jobs; Lead Gen, Turn Time, Jumbo Products; Guild/RMS Deal

Posted To: Pipeline Press

Is Better.com worth $7.7 billion , as indicated by the SPAC deal announced yesterday? I guess things are worth the price at which a willing buyer and seller transact. For comparison, the book value of Rocket is $34 billion, UWM $10.9 billion, Guild Mortgage $876 million. I mention Guild because of its acquisition news from yesterday, noted below. And I mention Rocket because of the UWM earnings call yesterday where CEO Mat Ishbia listed off the wholesaler’s accomplishments in the first quarter. UWM Holdings’ stock price, however, is trading near its all time low, its dividend yield is approaching 6 percent, and it is the defendant in a well-publicized lawsuit filed by brokers. Every lender, public or private, is watching economic trends in their areas: record low inventory, builders…(read more)

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Source: Mortgage News Daily

Mortgage Application Volume Revs Up For The First Time Since April

Posted To: MND NewsWire

Mortgage application volume rose for the first time since mid-April last week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, increased 2.1 percent on a seasonally adjusted basis during the week ended May 7 and was 2.0 percent higher on an unadjusted basis. The Refinance Index gained 3 percent from the previous week but was down 12 percent from its level during the same week one year ago. The refinance share of mortgage activity increased to 61.3 percent of total applications from 61.0 percent the previous week. Both the seasonally adjusted and the unadjusted Purchase Indices grew by 1 percent from the prior week. The unadjusted Purchase Index was 13 percent higher than the same week in 2020. Refi Index vs 30yr Fixed Purchase Index vs 30yr…(read more)

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Source: Mortgage News Daily

Even "Off-Radar" Metros Saw Huge Q1 Price Gains

Posted To: MND NewsWire

Metro area home prices rose sharply in the first quarter of 2021 and virtually every part of the country was impacted. The National Association of Realtors® (NAR) said that 99 percent of the 183 areas it tracks posted annual price gains, and for 89 percent (163 areas) those increases were in the double digits. For comparison, in the first quarter of 2020 only a quarter of the areas (46 of 181) had that magnitude of growth. The median price of an existing single family home rose 16.2 percent to a national median of $319,200, the largest gain since 1989. The 11 areas with the most outsized growth, however, were not necessarily those with the most expensive homes. The top increase, 35.5 percent, was Kingston, New York where the median is now $303,100. The highest median price among the 11…(read more)

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Source: Mortgage News Daily

Conventional Loan Access Expanded in April

Posted To: MND NewsWire

Access to mortgage financing improved in April, driven by a large gain in the availability of both conforming and jumbo mortgages. The Mortgage Bankers Association (MBA) said its Mortgage Credit Availability Index (MCAI) rose 2.2 percent to 128.1 during the month. An increase in the MCAI indicates that lending standards are loosening. The Conventional MCAI increased 4.8 percent , while the Government MCAI ticked up by 0.1 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased 6.9 percent, and the Conforming MCAI rose 12.6 percent. “Credit availability rose in April, fueled by a 5 percent increase in conventional mortgage credit, as well as an expansion in agency programs for ARMs and high-balance loans. The conforming and jumbo loan indices jumped 7 percent and…(read more)

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Source: Mortgage News Daily

Delinquency Rates Leveled Off in February

Posted To: MND NewsWire

Mortgage delinquency rates ticked up slightly in February, the first increase since August 2020 . CoreLogic said the national delinquency rate at the end of the reporting period was 5.7 percent, up 0.1 percentage point from January. The rate indicates the percentage of all mortgages that were 30 or more days past due including those in foreclosure. The rate in February 2020, one month before the COVID-19 virus shut down much of the country, was 3.6 percent. It peaked at 4.3 percent in August 2020. “Some families that had overspent during the year-end holiday season, and then faced financial stress in the new year, may slip behind on a mortgage payment by February,” said Dr. Frank Nothaft, chief economist at CoreLogic. “During each of the last five years, the 30-day delinquency rate moved higher…(read more)

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Source: Mortgage News Daily

Ops. Mgt., MLO Jobs; Renovation, Docs, Retention Non-QM Training Tools; Product Updates

Posted To: Pipeline Press

The real estate and lending industries operate in a world filled with laws, lawsuits, and regulators. (The latest example is REX’s suit against Zillow and the National Association of Realtors – NAR – over the real estate segregation rule, which puts the interests of legacy real estate brokers before consumers.) Does this clip remind you of your Direct to Consumer Department ? Hope not. And I hope that it’s not your Customer Complaint Department either. Here is something every compliance department should read: a National Law Review article pointing out the CFPB’s current thoughts on lending and servicing during the pandemic. Compliance departments are certainly aware of how compensation is paid to AEs and LOs. After analyzing data from its CompenSafe ™ ICM platform…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Bonds Bide Time With Fed Speakers and Auction Anxiety

Posted To: MBS Commentary

Bonds lost ground moderately yesterday and blame was most easily assigned to the broad notion of "supply." More specifically, a record-setting round of Treasury auctions kicks off today with 3yr notes, which are by far the least relevant of the 3. Things don't get super serious until tomorrow's 10yr Note auction. Things can also get serious when a huge corporate bond offering hits the market, as was the case with Amazon's $18 bln deal yesterday. Amazon was joined by nine other issuers for a total of nearly $29 bln on the day, which was $3bln higher than the entire previous week, and roughly double the volume seen in the week before that. Corporates are off to another strong start today (i.e. upward pressure on yields) even though no massive Amazon-like deals are expected…(read more)

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Source: Mortgage News Daily

MBS RECAP: Heavy Issuance Weighs on Bonds

Posted To: MBS Commentary

Heavy Issuance Weighs on Bonds We knew bonds would be skittish about Treasury auctions this week, but the defensiveness began early owing to a big glut of corporate bond offerings. Amazon led the way, accounting for nearly $20bln of the rather epic $34+ bln on the day. Those are numbers we only ever see when one big player is bringing one of the year's biggest bond offerings to the table. How big is $34bln of investment grade debt if it hits all on one DAY? The best way to answer that is to simply remember the Fed only adds $40bln of new MBS in an entire MONTH. The damage was minimal, all things considered, with MBS only losing an eighth of a point as of 4pm ET and 10yr yields up 2bps to 1.60%. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 08:42 AM modestly weaker…(read more)

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Source: Mortgage News Daily

Homebuying Sentiment Turns Negative Despite Economic Improvement

Posted To: MND NewsWire

Fannie Mae has conducted the National Housing Survey every month since 2011. Among its most prominent questions are those relating to home buying and home selling: is it a good or a bad time to do either one? Last month the net positive responses for the good time to buy category fell into negative territory for the first time. The good time to sell question had plunged into seriously negative territory (-36 percent) in the spring of last year as the pandemic hit, but this time it remained well above water. Sixty-seven percent of respondents viewed this as a good time to sell versus 26 percent who did not, a net positive of 41 percent, an 8 point gain from March and up 77 points from the disastrous results during the lockdown. However, only 47 percent of respondents thought it was a good time…(read more)

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Source: Mortgage News Daily