Policy Changes Make Getting a Mortgage Slightly Harder

Posted To: MND NewsWire

There was a significant loss of credit access in June. The Mortgage Bankers Association (MBA) says its Mortgage Credit Availability Index (MCAI) fell by 8.5 percent month-over-month to 118.8, its lowest level in nine months. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. All of the MCAI components moved lower. The Conventional MCAI decreased 17.1 percent, while the Government MCAI ticked down 1.4 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI declined 11.5 percent, and the Conforming MCAI fell by 23.5 percent. “Mortgage credit availability in June fell to its lowest level since September 2020, ending more than half a year of increasing credit supply. The overall credit availability…(read more)

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Source: Mortgage News Daily

Controller, AE, MLO Jobs; ECOA, Referral, Broker, Warehouse Products; Correspondent and Wholesale News

Posted To: Pipeline Press

I am sure that there are people who read this commentary who firmly believe that the earth’s climate is not changing, and believe that historical graphs of temperatures in places like Minneapolis are falsified. And there are those that believe that any change is purely natural and has nothing to do with humans. Others believe mankind is causing climate change, violent storms, flooding, etc. That said, does anyone disagree that poorer areas in the United States are hotter than affluent areas because they have more asphalt and fewer trees? Researchers of this phenomenon have made their data publicly available and created an interactive map . Poorer neighborhoods, usually of color, tend to have more asphalt, buildings, and highways, all of which absorb the incoming solar energy and then…(read more)

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Source: Mortgage News Daily

MLO Jobs; Pricing, Execution, Retention, Trailing Doc, Referral Products; HUD, Ginnie, FHA/VA News

Posted To: Pipeline Press

Ask any manager. It was much more fun to announce, “We’re hiring!” than it is to mutter, “We’re laying off.” Currently there are plenty of rumors about lenders, both publicly and privately held, down-sizing. (I guess the PC term is “right-sizing” but I’ve never heard an expanding company use that term.) Here is a quick reminder that anyone can post their resume for free at LenderNews where companies can view them. Although there is no correlation, residential lenders’ employee numbers are following the price of wood which has dropped dramatically to the “pricey, yet reasonable” tier of commodity valuation after rising to stratospheric heights earlier this year. Since the 1990s, lumber’s mostly traded for $200-$400…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Bonds Testing Various Technical Boundaries

Posted To: MBS Commentary

After Wednesday's respectable rally, we may as well give up the search for too much discrete causality in the bond market. While we can definitely observe connections in the short term to individual events, technicals and tradeflows have been just as relevant and they tend to play out less predictably in terms of timing and ground-covered. 10yr yields successfully defended against a break above a ceiling at 1.424 and moved fairly quickly back to the next technical zone underfoot. This could be seen as anything from 1.34 to 1.38, but we've been using 1.36 in our "key levels" list. As of this morning, bonds were also able to make a case for new breakouts–both of the short-term uptrend (yellow lines) and of 1.36. In so doing, they've moved to test the pivot point at 1.30…(read more)

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Source: Mortgage News Daily

MBS RECAP: Bonds Recover as Friendly Powell Trumps Inflation Data (sort of…)

Posted To: MBS Commentary

Bonds Recover as Friendly Powell Trumps Inflation Data (sort of…) Producer prices surged in this morning's report at the same time that Powell's prepared remarks were released for this afternoon's congressional testimony. The subsequent improvement in bonds makes it tempting to credit Powell's speech for the victory. Powell certainly did no harm as he maintained the same stance seen in all recent communications but it's important to note that more than half the gains were intact by 8:30am. In retrospect, yesterday is looking more and more like "supply indigestion" for bonds, and today could thus be seen as a return to the prevailing baseline (apart from yesterday afternoon, 10yr yields have traded a very narrow range between 1.33 and 1.37 for 4 straight days…(read more)

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Source: Mortgage News Daily

Mortgage Rates Recover Most of Yesterday's Losses

Posted To: Mortgage Rate Watch

Mortgage rates moved higher yesterday after a poorly-received 30yr bond auction ( read more… ). The bond market began to heal in the overnight trading session. By the time US traders clocked in this morning, more than half of the weakness had been erased. As the day progressed, things have only improved. All this despite another hotter-than-expected inflation report (something that traditionally puts upward pressure on rates) to kick off the day. While inflation is indeed bad for rates, all other things being equal, there are several caveats at the moment. The first is that the current inflation spike is well understood as being driven in large part by covid-related supply chain disruptions, even if the boundaries are not easy to predict in the short term. Everyone hopes or expects the inflationary…(read more)

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Source: Mortgage News Daily

Corresp., MLO Jobs; Jumbo, Non-QM, VOE, Warehouse Products; Freddie and Fannie Changes; More Inflation Numbers

Posted To: Pipeline Press

Don’t think technology controls you? How about this news that Apple’s weather app will never show a temperature of 69 degrees ? Good mortgage loan originators use the technology available to them to best help their customers. Brokers use Mortgage Elements to look for wholesalers offering products. Meanwhile, many consumers are doing the same. Have you heard of BestLendersFor.com ? It has launched into the United States, “providing free real time rankings for consumers, and mortgage rates to consumers nationwide… Through its own diligent research, extensive conversations with each lender, a review of each lenders consumer reviews and plugging into each lenders daily offered rates in real time, it will give consumers a one stop place to save time, money, and headaches…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: 5.6% Producer-Level Inflation? No Big Deal

Posted To: MBS Commentary

The bond market doesn't tend to care about wholesale inflation (PPI) relative to the mainstream indices (CPI, PCE), but a number as high as 5.6% might give us some pause. Or at least we might have have imagined it would before this morning. Bonds didn't think twice about taking it in stride. Combine that with yesterday morning's tame reaction to the highest CPI in 30 years and a Powell speech (later today at Congress) that reiterates the commitment to ongoing accommodation, and bonds are off to a solid start. Stocks are off to a solid start as well, and for largely the same reasons. Simply put, when economic data or Fed speakers do something to inform the outlook for Fed accommodation, stocks and bonds tend to react predictably. More accommodation = stocks up and yields down. Less…(read more)

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Source: Mortgage News Daily

Mortgage Application Volume Bounces Back, Refi Share up 20%

Posted To: MND NewsWire

Mortgage application volume during the week ended July 9 featured the largest weekly increase since the first full week of 2021. The Mortgage Bankers Association (MBA)said its Market Composite Index, a measure of that volume, rose 16.0 percent on a seasonally adjusted basis. Like the week ended January 8, last week’s number represented a bounce-back from a major national holiday, but declining interest rates probably also played a role. The increase before seasonal adjustment was 7.0 percent. The Refinance Index increased 20 percent from the previous week but was 29 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 64.1 percent of total applications from 61.6 percent the previous week, the highest share for refinancing since Mar 5. The seasonally…(read more)

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Source: Mortgage News Daily

Mortgage Rates Moving Higher So Far This Week

Posted To: Mortgage Rate Watch

Mortgage rates are coming off a solid performance last week after having moved to the lowest levels in 5 months by Thursday afternoon. This week is shaping up to be a bit different , however. In fact, as of this afternoon, the average lender has lost most of last week’s improvements. What’s behind the volatility? There are both general and specific considerations. In a general sense, last week’s bond market gains (stronger bonds = lower rates) were perhaps a bit overdone. They set the stage for a potential correction purely for technical reasons. In other words, nothing new or notable changed after last Thursday to push rates back up–at least not until today. Today brought the specific considerations with a double whammy from inflation data and a Treasury bond auction. The consumer price index…(read more)

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Source: Mortgage News Daily