Affordability Issues Expected to Dampen Home Price Gains

Posted To: MND NewsWire

Home prices rose another 1.1 percent in November according to the CoreLogic report on its Home Price Index. The year-over-year gain was 8.2 percent , accelerating from the annual increase of 7.3 percent posted for October. The company said that home price growth remained consistently elevated throughout last year. Home sales are expected to finish the year above their 2019 levels. Meanwhile, the availability of homes for sale has dwindled with increased demand as the pandemic deterred some potential home sellers from putting their homes on the market. While the pandemic has created a lot of financial insecurity, those households which maintained employment and income stability have also been incentivized by the record low rates to buy. This has further increased demand. The rise in home prices…(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

Sales, Investor, Workflow Products; Training and Webinars From Home

Posted To: Pipeline Press

2021: Fifty years since the release of Led Zeppelin 4 (think Stairway to Heaven). In 1971 there were 208 million people living in the United States. Now there are approximately 330 million of us. The U.S. Census Bureau released its once-a-decade Population Estimates (2020) with the Vintage 2020 estimates being based on the 2010 Census and provide the opportunity to make comparisons against the latest decennial census to assess the accuracy of the estimates. Differences between the estimates and Census counts are used to inform research and methodological improvements over the decade. The estimates had California (39.4 million) and Texas (29.4 million) as the two most populated states, while Wyoming (582k) and Vermont (623k) are estimated to be the two most sparsely populated states. Illinois…(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

MBS Day Ahead: Georgia Senate Vote is Today, But Not The Market Reaction

Posted To: MBS Commentary

Forget the economy. Forget covid. Forget Fed policy. Those things will all be back to move the bond market fairly soon, but first, there will be an adjustment in response to the outcome of today's Georgia senate elections. Polls are open now and will remain open until 7pm. That means the results are not counted until polls close, so this will not be a market mover today, and if the races are close enough, it's not even a guarantee for tomorrow, although that is certainly a risk. Between now and then, we should expect bonds to remain in the prevailing range with 10yr yields hesitant to stray too far below 0.90 or above 0.96. Today's only relevant economic data is ISM Non-Manufacturing at 10am ET. This is typically one of the more capable market movers, and while it could have a small…(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

Mortgage Rates Off To Slow Start, Which is Great

Posted To: Mortgage Rate Watch

Mortgage rates are off to a slow start in the new year, and that’s a good thing. An absence of movement means the average lender continues offering rates that are at or near record lows. For top tier, conventional 30yr fixed loans, that’s around 2.75% for refinances and 2.5% for purchases. Whether or not rates remain in this territory in the short term may come down to Georgia’s senate run-off elections this Wednesday. Why would rates care about that? Simply put, any time one political party has full control (i.e. House, Senate, Presidency), it’s easier for the government to spend money (or legislate a revenue shortfall, as was the case with the tax bill in 2017). In either case, the result is more Treasury debt, and the level of Treasury debt is a key input for interest rates in general. This…(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

MBS RECAP: Markets Back in Action, Hurrying Up and Waiting

Posted To: MBS Commentary

Markets Back in Action, Hurrying Up and Waiting Bonds were back in action today although you'd hardly know it based on the narrow trading range. Stocks were much more willing to put on a show with S&P futures down 1.5% by the close. Bonds gleaned some small benefit from that, perhaps, as 10yr Treasuries went from slightly weaker to slightly stronger during the stock sell-off. In general though, bonds continue to wait on GA senate election results (earliest possible impact would be Thursday). Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Market Movement Recap 08:36 AM Active trading overnight, weaker at first, but then stronger during European hours. Slightly higher yields at the domestic open. Biggest movers so far = corporate issuance , and overnight…(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

Residential Spending Continues to Lead Construction Numbers

Posted To: MND NewsWire

Total spending on construction projects in the U.S. rose 0.9 percent in November compared to October. The U.S. Census Bureau estimated that the seasonally adjusted annual spending on all types of construction was $1.459 trillion during the month compared to $1.447 trillion the prior month, an 0.9 percent increase. The rate was up 3.8 percent from annualized spending ($1.406 trillion) in November 2019. On an unadjusted basis, there was $123.452 billion spent during the month, down from $128.919 billion in October. For the first 11 months of 2020 expenditures had totaled $1.314 trillion, up from $1.259 trillion during the same period in 2019, a 4.4 percent gain. Privately funded spending increased 1.2 percent month-over-month and 4.1 percent on an annual basis. Seasonally adjusted annual spending…(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

Forbearances Slightly Elevated at the End of 2020

Posted To: MND NewsWire

The number of loans in COVID-19 forbearance plans last week rose for the third consecutive week during the period ended December 29. Black Knight said a 15,000-loan increase in the number of forborne loans brought the total to its highest level since early November. However, despite three consecutive weekly rises, the number of active plans only stands 13,000 higher than the same point in late November. Part of last week’s increase was due to the limited number of loans removed from the rolls, the fewest since the start of the pandemic. A drop off in removals has been noted fairly consistently late in each month, but according to the company, may have been more pronounced during the holidays. There were nearly 270,000 plans due to expire at the end of December so the company says it is possible…(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

MLO, Ops Jobs; COO Seeking Role; Subservicer, URLA, VA IRRRL, HELOC, MSR Products; Non-QM lender Rebrand

Posted To: Pipeline Press

Here we are on the first business day of 2021, the year of the movie Mad Max 2. (It is so much easier saying “2020” than “2021,” right?) Last year, as one industry vet wrote me, was “The Year Of The Genius” in mortgage banking. It seems that everyone is talking about record-breaking volume, margin, and income. “The industry’s ‘collective IQ’ almost doubled,” he said sarcastically. Everyone was smart, and if you are an MLO or lender who didn’t make money, well, when will you? Industry veterans know, however, that a prosperous year like 2020 can mask some imbedded risks (e.g., within a lender, industry-specific, and/or macro-economic), some combination of which could emerge in the second half of 2021 to bring this party to…(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

MBS Week Ahead: This Week Could See The Biggest Momentum Shift in Months

Posted To: MBS Commentary

The presidential election happened 2 months ago and since then, bonds really haven't moved other than in response to the Pfizer vaccine news on Nov 9th and stimulus news on Dec 1st. Both of those sell-offs took 10yr yields to similar ceilings. Both were under 1.00%. It's entirely possible (if not probable!) that the key motivation for remaining so sideways during that time is that the Georgia senate run-off elections are still TBD. At stake: the balance of power in the US government. Full control by one political party is something the bond market typically cares very deeply about (as seen in late 2016 when the election precipitated the biggest month of bond market losses since 2003). Later this week (Wed night, at the earliest), markets will finally learn whether or not democrats will…(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

MBS RECAP: Token Gains, Light Volume, Early Close

Posted To: MBS Commentary

Token Gains, Light Volume, Early Close Bond market focus remains on the Georgia senate run-off election day on January 5th. Today was a non-event… a place holder in the grand scheme. Any movement today was bound to be incidental. As it happened, that movement was friendly, albeit only modestly. Expect bigger movement in the middle-to-end of next week as GA election results roll in. Happy New Year! Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Jobless Claims 787k vs 833k f'cast, 806k prev Market Movement Recap 09:29 AM Mostly unchanged overnight, slightly weaker at the open and rallying back to unchanged presently. 10yr yields at .926 and UMBS 1.5 coupons +0.03 at 100.94. All movement should be assumed to be incidental and without momentum implications…(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