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We are always available to help make sense of the market.

Mortgage News Daily News Feed

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MBS RECAP: Technically an Early Close, but Buyers Never Showed Up

Posted To: MBS Commentary

MBS Live : MBS Afternoon Market Summary After a morning fraught with volatility, MBS finally bounced just after the noon hour. Even then, such a bounce wasn't really indicative of much more than an automatic buying point being reached when MBS spreads had finally blown out wide enough. In other words, in the midst of planning the day filled with avoiding buying MBS, perhaps some trade desks left notes for whoever was left manning the desk to 'only buy if spreads get this wide.' Everyone else was off for the weekend, especially after 11am. The fact that we only got a moderate handful of negative reprices today helps paint that same picture. Given the volatility, we'd almost always expect more reprices that we got, but when combined with yesterday's rate sheets being weaker than MBS losses suggested...(read more)

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Mortgage Rates Hold Steady Ahead of 3-Day Weekend

Posted To: Mortgage Rate Watch

Mortgage rates finally paused their relentless push higher today, holding at unchanged levels compared to yesterday's latest rate sheets on average. Some lenders were slightly better or worse, but none of them by a wide margin. Data and events were limited and markets were in holiday mode. The most relevant market to mortgage rates, MBS, had a volatile day, but the volatility didn't transfer to rate sheets as much as it normally does, likely due to the shortened trading day and 3-day weekend ahead prompting lenders to price more conservatively yesterday. This would go a long way toward accounting for our observation yesterday that rate sheets were worse in the morning despite trading levels not being appreciably weaker. (If you missed this week's big news for rates, or want a refresher: Why...(read more)

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MBS MID-DAY: Negative Reprices in the AM: Breakfast of Champions

Posted To: MBS Commentary

MBS Live : MBS Morning Market Summary Please not the timestamp on the price table below as Fannie 3.0s are currently down 3 ticks at 101-19, but had been as low as 101-13 earlier this morning. Negative reprice alerts on MBS Live went out at 11:20am, 11:56am, and 12:20pm. Treasuries have had a calm morning while MBS had a mini-meltdown, moving to the lowest prices of the year, resulting in several investor reprices. Durable Goods data had relatively little effect and instead the lack of liquidity in MBS began taking its toll just after 10am. Buying triggers look to have been tripped at the lows (or "wides" in terms of MBS spread vs Treasuries). Volatility was a possibility from the outset given the shortened trading day and the Quadruple Witching options/futures expirations in equities markets...(read more)

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Delinquency Rate Hits Post Housing Crisis Low for Freddie Mac

Posted To: MND NewsWire

Freddie Mac said today that its total mortgage portfolio i ncreased by $951 million in April to $1.949 trillion , an increase of 0.6 percent. This was the second straight month the portfolio has increased. Purchases totaled $47.3 billion compared to $52.0 billion in March, liquidations were ($45.7) compared to ($44.85) billion and sales were ($627) million, up from ($617) million. The year to date growth in that portfolio is (1.1) percent and the annualized liquidation rate is 29.2 percent. The Mortgage-Related Investments Portfolio declined from an unpaid principal balance of $534.2 billion in March to 528.3 billion in April, a change of 13.2 percent . Purchases totaled $15.0 billion compared to $13.57 billion in March. Liquidations increased from ($10.10) billion the month before to ($10...(read more)

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Government Furlough Days; H.R. 1077's Impact on QM And 3% Limit; MBA on GSE risk sharing

Posted To: Pipeline Press

T he IRS, furlough days, and the possible impact on 4506 transcript processing . I first heard about it through a Mountain West Financial e-mail: "The IRS announced the first 5 furlough days for 2013. All services will be shut down as they would be if it were a federal holiday. The furlough days currently scheduled will take place on May 24, June 14, July 5, July 22, and August 30 . All public-facing operations will be closed on these dates, including the toll-free operations and Taxpayer Assistance Centers. The IRS will not accept nor return any orders on those days, however Equifax will continue to receive and prepare request for submission. Transcript receipt and turn time delays normally associated with holiday closures can be expected." No one is arguing that the value of servicing is...(read more)

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