Mortgage Apps Reflect Seasonal Slowdown

Posted To: MND NewsWire

The volume of mortgage applications retreated this past week, giving back most of the gains scored during the week ended December 6 following the Thanksgiving week lull. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of loan application volume, decreased 5.0 percent on a seasonally adjusted basis during the week ended December 13. On an unadjusted basis, the Index declined 6 percent. The Refinance Index was down 7 percent but was 135 percent higher than the same week one year earlier. The refinance share of mortgage activity decreased to 62.2 percent of total applications from 62.4 percent the previous week. There was a 2.0 percent loss in the seasonally adjusted Purchase Index , 6.0 percent on an unadjusted basis. The Index was up 10 percent compared to its…(read more)

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Source: Mortgage News Daily

Mortgage Rates Hold Fairly Steady

Posted To: Mortgage Rate Watch

Mortgage rates didn’t do much today, and that’s the sort of thing that could get to be all too familiar as we head into the end of the year. With the Fed announcement and trade deal drama last week, the bond market (which underlies interest rate movement) made it through the last of 2019’s big ticket events. Beyond that, the 2nd half of December always tends to calm down in terms of market participation due to the holiday season. All of the above usually means that rates don’t move much, or at the very least, not much outside their recent range. There can be exceptions to that rule on certain years, but we’ll cross that bridge if we come to it. Either way, the bigger risks for more meaningful changes in rates won’t show up until the 2nd week of January. Loan Originator Perspectives Bonds hovered…(read more)

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Source: Mortgage News Daily

Home Building Defies Expectations, Up 11% From 2018

Posted To: MND NewsWire

The numbers for November residential construction permits and housing starts came in higher than expected , marking the second straight month of increases and putting the rate for both well ahead of last year. Housing completions were down significantly but still maintained a year-over-year edge. The Census Bureau and the Department of Housing and Urban Development said building permits nationwide were at a seasonally adjusted annual rate of 1,482,000 during the month, up 1.4 percent from a slightly revised October rate of 1,461,000. Construction authorizations are now up 11.1 percent from the November 2018 rate of 1,334,000. The permit results defied expectations that they would decline after their strong showing in October when they posted a 5.0 percent gain. The consensus of analysts polled…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Sights Set on 2020, Hoping For Low Drama Holidays

Posted To: MBS Commentary

Based on volumes, liquidity, and most importantly, the calendar itself, there's a compelling case to be made for closing the book on 2019 as a trading year and picking things back up with 2020 developments. Why would we throw away 2 weeks of trading and what exactly does that entail? First off, the next 2 weeks (the exact amount of time left in 2019) will not be thrown away in the sense of bond prices' impact on mortgage rates. If bonds tank, rates will still move higher, and if bonds rally epically, rates can still fall. That said, major rallies will have less of an impact than they might in other months where more traders are trading more money, and where there's no apprehension about liquidity drying up even more in the coming weeks. What is liquidity and why will it dry up?…(read more)

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Source: Mortgage News Daily

Comp Survey; Training and Events; Co-Marketing and JVs

Posted To: Pipeline Press

Mark Twain famously said, “When I was a boy of 14, my father was so ignorant I could hardly stand to have the old man around. But when I got to be 21, I was astonished at how much the old man had learned in seven years.” Many lenders have learned a lot about partnering and co-branding. Much of this is supported by computers (aka, digital) and creative, aggressive management. Like Quicken Loans and Charles Schwab/TD Ameritrade, or NewRez partnering with Russell Real Estate Services. There’s Wealthfront “eyeing” partnering up with a bank to offer mortgages. (“Wealthfront… Customers will be able to apply for mortgages made by a bank partner of Wealthfront through Wealthfront’s mobile app…”) Certainly lenders are either owned by, or partner with, real estate companies…(read more)

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Source: Mortgage News Daily

MBS RECAP: Friday's Rally Called a Head-Fake by Today's Trading

Posted To: MBS Commentary

Friday was a somewhat glorious day for bond markets, but perhaps only because Thursday was so terrible. Both of those sessions were completely driven by trade-related updates as the US and China worked toward putting out what some might call a lackluster confirmation of the "phase 1" trade deal. (I say "lackluster" because it isn't signed yet, even if it ultimately will be, and because there are critical details that remain to be hammered out.) Friday's trading made Thursday look like a massive, negative head-fake . But now today's trading makes Friday look like the unwelcome visitor to an otherwise bond-bearish party! Weakness was in place right from the start of the overnight session, but losses leveled off and held sideways throughout European hours. As domestic…(read more)

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Source: Mortgage News Daily

Mortgage Rates Mixed Today, at Risk of Reversal

Posted To: Mortgage Rate Watch

Mortgage rates were nicely lower on Friday, though not quite as nicely as we would hope or expect. Why is that? Simply put, the bond market (which underlies and most directly affects mortgage rates) suggested an even stronger improvement. Bonds provide the raw ingredients and mortgage lenders translate those into their daily rate sheet offerings–sometimes several times a day depending on bond market volatility. More than a few lenders adjusted their rate sheets favorably on Friday, but they were cautious in that endeavor. This is fairly typical on Friday afternoons–especially in mid-December. The caution was further reinforced by the volatility nature of the underlying market motivations (i.e. the reaction to the US/China trade deal news). Lenders were a bit more generous this morning after…(read more)

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Source: Mortgage News Daily

Builder Confidence Highest in Two Decades

Posted To: MND NewsWire

Home builders ended the year with an apparent outbreak of euphoria. Responding to higher trending sales and low interest rates they sent the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) soaring to its highest reading since June 1999. NAHB said the December HMI, a measure of builder confidence in the market for new homes, jumped 5 points to 76. The gain was on top of a November index that was revised up from 70 to 71. “Builders are continuing to see the housing rebound that began in the spring, supported by a low supply of existing homes, low mortgage rates and a strong labor market ,” said NAHB Chairman Greg Ugalde. “While we are seeing near-term positive market conditions with a 50-year low for the unemployment rate and increased wage growth, we are still…(read more)

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Source: Mortgage News Daily

MBS Week Ahead: Despite Friendly Friday Bounce, Risks Remain

Posted To: MBS Commentary

Have you ever worried about the negative repercussions of some anticipated event in your life only to find out they weren't so bad? For the bond market, last Friday was one of those days. The much-anticipated phase 1 trade deal was (kind of) announced by both the US and China. Apparently, there are still a few details left to hammer out not to mention the fact that the thing won't be signed until January at the earliest. Ultimately, it was those "yeah buts" that allowed bonds to almost fully erase the massive day of anticipatory weakness seen last Thursday. That said, last Thursday wasn't the only day that bonds were allowed to harbor some negative anticipation. Realistically, most of the last 4 months have been spent coming to terms with the eventual end of the trade…(read more)

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Source: Mortgage News Daily

Analytics, CRM Tools; Jumbo and Non-QM Trends: End in Sight for Trade War?

Posted To: Pipeline Press

No one wants their labors to go to waste, whether you’re an underwriter who is over-ruled by the head of credit, or an MLO who finds out your approved borrower is going to a competitor. What about designing and building a major amusement park in Louisiana quickly abandoned? Let’s just say nature bats last . Lender Services and Products Nationwide lender, NewRez, has announced the official launch of Your Home Financial, a new joint venture mortgage company. NewRez partnered with Russell Real Estate Services, a heavy hitter in the Cleveland, Ohio region with over 650 agents, to form the new JV in July 2019. With the Sales Team led by Paul McKelvey as President, Your Home Financial, is now fully operational. “At NewRez, we take great pride in our Joint Venture partnerships and…(read more)

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Source: Mortgage News Daily