Housing bubble mortgage issues

Posted To: MBS Commentary Led by a corrective bounce in Treasury prices, rate sheet influential MBS coupons have rallied more than 8 ticks from where they opened at the session lows. This is not reflective of concentrated demand for agency MBS, as evidenced via wider production MBS coupon yield spreads, as much as mortgages are playing follow the leader with a bull flattening benchmark yield curve. Although it is normal for MBS to lag a TSY rally, there also looks to be some localized weakness in the MBS market as dealers are attempting to distribute the $3+ billion in new loan supply that was offered by originators on Friday. The October delivery FNCL 4.0 is currently +0-13 at 102-24. Bid wanted... Treasuries are retesting the Friday sell off. The September expiry 10 year TSY futures contract is +0-30 at 126-03. The...( read more ) Forward this article via email:   Send a copy of this story to someone you know that may want to read it.

Posted To: MBS Commentary Recap of Yesterday U.S. Treasuries got off to a strong start yesterday but gains were quick to reverse course after a better than expected report on Weekly Jobless Claims. An improved read on the labor market helped cheapen benchmark debt just before the final Treasury auction of the week where $29 billion 7-year notes were scheduled to be sold. While direct bidder participation continued to fade, 7s turned out to be the best auction of the week...mostly thanks to a steller turnout from indirect bidders (again). The long end of the yield curve never looked back after that.... Treasuries rallied into the close as stocks sold into their session lows. The 2.625% coupon bearing 10-year TSY note went out +0-17 at 101-09 yielding 2.481% (-5.9bps). The long bond was the best performer on the curve...( read more ) Forward this article via email:   Send a copy of this story to someone you know that may want to read it.

Posted To: MND NewsWire FYI: This update was issued to lenders yesterday by the USDA Rural Housing Office..... HERE is the presser issued by the USDA ----------------------------- TO : Participating Lenders FROM : Tammye Trevifio, Administrator, Housing and Community Facilities Programs SUBJECT : Single Family Housing Guaranteed Loan Program Funding Notice Many of you may be aware of recent legislation in which Congress provided USDA with authority to resume operating the Single Family Housing Guaranteed Loan Program (SFHGLP) at no cost to taxpayers. This was done through a combination of authority to: increase the upfront fee up to 3.5 percent of the principal obligation; charge a new annual fee of up to 0.5 percent of the outstanding principal balance; and waive payment of any fees for low and very low income borrowers...( read more ) Forward this article via email:   Send a copy of this story to someone you know that may want to read it.

Posted To: MBS Commentary Good Morning. Benchmark interest rates held onto yesterday's improvements in the overnight trading session as global equity markets extended their losing streak. Red is smeared across the stock market scoreboard again... Shanghai -2.03%, Nikkei -1.66%, Topix: -1.27%, Kospi: -1.46%, Hang Seng -0.11%, Dax -0.40%, CAC -0.80%, FTSE -0.74%. Domestic stock futures are following the rest of the world lower ahead of U.S Durable Goods data, New Home Sales, and the Beige Book. S&P 500 futures are -2.75 at 1047.00. The 2s/10s yield curve is another 5bps flatter at 198bps (WOW) ahead of the $36 billion 5-year Treasury note auction. The long end is definitely leading the way with the bond +0-28 at 106-17 yielding 3.522% (-4bps) and the 10 year Treasury note +0-08 at 101-13 yielding 2.467% (-2.6bps...( read more ) Forward this article via email:   Send a copy of this story to someone you know that may want to read it.

Posted To: MND NewsWire The National Association of Realtors today released Existing Home Sales data for July 2010. HERE is the methodology for data collection Excerpts from the release.... Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of Realtors®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Total Sales are at the lowest level since the total existing-home sales series launched. Single-family home sales dropped 27...( read more ) Forward this article via email:   Send a copy of this story to someone you know that may want to read it.

Posted To: MBS Commentary 10:00 RTRS -US JULY EXISTING HOME SALES 3.83 MLN UNIT ANNUAL RATE (CONS 4.70 MLN) VS JUNE 5.26 MLN (PRV 5.37)-NAR 10:00 RTRS -US JULY EXISTING HOME SALES RECORD -27.2 PCT (CONS -12.0 PCT) VS JUNE -7.1 PCT (PREV -5.1 PCT)-NAR 10:00 RTRS -US JULY INVENTORY OF HOMES FOR SALE +2.5 PCT TO 3.984 MLN UNITS, 12.5 MONTHS' SUPPLY-NAR 10:00 RTRS -US JULY NATIONAL MEDIAN PRICE FOR EXISTING HOMES $182,600, +0.7 PCT FROM JULY 2009-NAR 10:00 RTRS -US JULY EXISTING HOME SALES LEVEL LOWEST SINCE MAY 1995, MONTHS SUPPLY LARGEST SINCE AT LEAST 1999--NAR 10:00 RTRS -TABLE-U.S. July existing home sales fell 27.2 pct After the data flashed.... S&P 500 stock futures fell another point while benchmark Treasuries and rate sheet influential MBS coupons extended overnight price gains. The yield curve is bull...( read more ) Forward this article via email:   Send a copy of this story to someone you know that may want to read it.

Posted To: Pipeline Press The interesting thing about "mortgage banking" is that it is not a discipline taught in school to youth. It is not like chemistry or psychology, or animal science, etc., that one can major in. It includes aspects of many different things, like finance, sales, marketing, psychology, accounting, and so forth. The skills and knowledge of a good processor aren't necessarily those of a good CFO of a mortgage company, and an underwriter's skills don't match those of a top loan agent - although both are in the same business. The MBA (Mortgage Bankers Association) has classes in various areas, and many MI companies and investors sometimes offer very specific classes - but it helps to learn a little something about other sides of the biz. For example, some folks don't know...( read more ) Forward this article via email:   Send a copy of this story to someone you know that may want to read it.

Posted To: MND NewsWire The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury have released the August edition of the Obama Administration's Housing Scorecard . The August 2010 Scorecard was marked primarily by how few changes were evidenced since the July Report. Housing prices have been relatively flat on a month to month basis since January 2009 when they ended their 30 month decline. Historic low interest rates continued to promote home affordability and refinancing options for the nation's families, but few people were taking advantage of it either to purchase a home or refinance their existing one. Overall, the market remains fragile with foreclosure starts showing a slight increase and serious delinquencies continuing to work through the pipeline. MND has...( read more ) Forward this article via email:   Send a copy of this story to someone you know that may want to read it.

Posted To: MBS Commentary We have yet to perform a thorough analysis on loan pricing this week. Now seems like a good time... Day over day, on average, rebate is 11.9bps better vs. rate sheets issued yesterday (after AM reprices). The majority of pricing improvements were passed along in the lower note rates, specifically those securitized into 4.0 MBS coupons. Yay bull flattener. Right now two lenders are going in the opposite direction as the other three majors. Those two lenders are better on a week over week basis and have both made 4.25% more "do-able" for well-qualified consumers. Borrowing costs are generally 0.125 to 0.25% higher at the other three pigs. I should mention those three lenders were priced super aggressive last Friday and are still priced super aggressive today, just not as super as last...( read more ) Forward this article via email:   Send a copy of this story to someone you know that may want to read it.

Posted To: Mortgage Rate Watch Mortgage rates are on a bit of a losing streak! Spurred on by a dramatic decline in benchmark debt yields, mortgage rates touched new lows last week. Actually I don't know if I should say mortgage rates hit new lows. Instead, maybe I should say "more lenders were offering record low mortgage rates last week". Yes a few lenders were spotted quoting 4.00% base rates, but the majority of the market was still pricing par mortgage loans at 4.25%. A well-qualified borrower's "best execution" combination of rates and points remained 4.375%. Whatever dip there was ended up being quick because lenders filled their production buckets fast and loan pricing started to suffer on Friday. Since then rates have slowly risen to levels just above record lows (still super aggressive...( read more ) Forward this article via email:   Send a copy of this story to someone you know that may want to read it.