Mortgage News

Keep current with what's happening in the mortgage market place.  Below are links to news articles that pertain to the mortgage industry.

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Mortgage News Daily

Posted To: MND NewsWire

Loan performance continued to improve in the second quarter. The overall delinquency rate on one-to-four-unit residential properties fell to a seasonally adjusted rate of 4.36 percent of all loans outstanding at the end of that period, a 27-basis point (bp) decline from the first quarter of this year. The National Delinquency Survey conducted by the Mortgage Bankers Association (MBA) found delinquencies in all stages were lower than during the first quarter; the 30-day delinquency rate dropped 2 bps while the 60-day and 90-delinquency buckets dropped by 8 and 18 bps respectively. The overall rate, however was up 12 bps from the second quarter of 2017. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The share...(read more)

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8/17/2018 7:03:41 AM

Posted To: Pipeline Press

Capital markets folks know that there are billions of dollars of outstanding 5, 6, 7, and even 8% securities filled with high interest-rate loans. LOs know that they aren’t paying off/refinancing. One possible reason? Despite the headlines talking about housing appreciation outpacing wages, about 10% of all U.S. homes with a mortgage are “seriously underwater.” These are homes where the balance on the loans are 25 percent higher than the actual market value of the home. There are 5.5 million seriously underwater properties in the U.S. , but some areas are harder hit than others. In Louisiana, 21.7 percent of homes are seriously underwater, 18.5 percent in Illinois and 17.8 percent in Missouri. Some zip codes are particularly dire: 65809, in Springfield, Missouri has 81 percent...(read more)

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8/17/2018 6:55:28 AM

Posted To: MBS Commentary

Treasuries were weaker at the start of the overnight session as renewed US/China trade negotiations propelled global equities markets higher. The hallmark of yesterday's overnight session was a sharp drop in Chinese stock futures which spilled over to US markets throughout the day. In other words, today was a reversal of yesterday. Granted, the trade-related news wasn't the only motivation, but it was definitely in play when Chinese equities opened at 9:30pm. Before that, there were some positive undercurrents in place from the morning's economic data. An exceptionally and surprisingly weak Philly Fed Index fueled a moderate rally at the that lasted until the 9:30am NYSE Open. From there, US equities took over as the key guidance-giver for bonds. Stocks spiked at the open and Treasury...(read more)

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8/16/2018 3:13:10 PM

Posted To: Mortgage Rate Watch

Be careful what you read--or perhaps, who you trust--about mortgage rates today. There's a lot of misinformation out there. Don't be mad. No one is out to get you. No one is out to intentionally deceive you (at least not when it comes to today's mortgage rate news. Rather, the misinformation is a byproduct of a few unfortunate realities that we contend with on a regular basis. The first reality is that Freddie Mac's weekly rate survey is widely relied upon by media outlets. There's nothing wrong with Freddie's data as long as you understand what you're getting. It is a stale, loosely accurate report of what a few lenders are offering on a few days of any given week. Over time (preferably, a LONG time), it does a nearly perfect job of capturing the ups and down in mortgage rates. The problem...(read more)

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8/16/2018 1:31:00 PM

Posted To: MND NewsWire

Purchase loans held on to the June share of 71 percent of closed loans in July which remains the highest share in the seven-year history of Ellie Mae's Origination Insight Report . Refinances also held steady, remaining at 29 percent although the percentage of refinancing through the VA gained 2 percentage points to 25 percent. Conventional and FHA stayed at 31 and 19 percent respectively. The distribution of new loans remained the same as in June as well, with 66 percent of originations going to conventional loans, 20 percent FHA, and VA loans accounting for 10 percent. The share of Adjustable Rate Mortgages (ARMs) dropped to 6.6 percent from 6.9 percent the previous month. "The purchase market remained solid in July and as we see inventories rise, we might begin to see a transition to a buyer...(read more)

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8/16/2018 10:33:29 AM

Posted To: MBS Commentary

I found myself driving in the truck for more than an hour yesterday evening--long enough to hear the news cycle repeated several times. During that time, I was emphatically warned about this " new " and " surprising " issue of Turkey's financial crisis. Apparently this has the potential to send shockwaves through global financial markets. Other people get road rage when other drivers are less than courteous, or due to ridiculous traffic perhaps. I get road rage when news radio misses the mark on financial market movers. I explained this to the officer that pulled me over for ostensibly making menacing gestures toward other drivers. He was going to give me a ticket anyway until I pulled out the laptop to put together the following chart for him. After he saw it, he apologized...(read more)

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8/16/2018 8:34:25 AM

Posted To: MND NewsWire

As analysts had predicted, both housing permits and starts recovered , albeit only slightly, in July after a poor showing the previous month. The U.S. Census Bureau and the Department of Housing and Urban Development now report that housing permits are being issued at a pace higher than in 2017, but housing starts are still lagging the earlier number. Permits for privately owned residential construction were issued in July at a seasonally adjusted annual rate of 1,311,000 units. This is an increase of 1.5 percent from the June rate of 1,292,000 (revised from 1,273,000 units). July's permitting rate is now 4.2 percent higher than that of July 2017. Analysts polled by Econoday had predicted permits would be at a rate ranging from 1,280,000 to 1,325,000. Their consensus was slightly below the...(read more)

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8/16/2018 8:15:48 AM

Posted To: Pipeline Press

Trillions of dollars of securities are tied to LIBOR, but the London Interbank Offered Rate is scheduled to be phased out at the end of 2021. Companies servicing adjustable rate mortgages tied to LIBOR are concerned, understandably, about the transition to another index. So far, the front runner substitute seems to be the Secured Overnight Financing Rate. Floating-rate bank bonds tied to SOFR could be brought to market within months . A name to watch: TD Securities. TD Bank has aided issuance of SOFR-based bonds from the World Bank and Fannie Mae. Technology and Vendor News Lenders can now participate in STRATMOR’s Technology Insight Study, a unique STRATMOR study that gets at the heart of the mortgage technology experience from the lender’s viewpoint. perspective. Time is running...(read more)

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8/16/2018 6:56:46 AM

Posted To: MND NewsWire

It shouldn't be news to anyone that the homeownership rate of the Millennial generation continues to be anemic. While it has improved slightly since 2015, the Urban Institute's (UI's) new research shows that, at that point it was 37 percent, 8 percentage points lower than the homeownership rate of Gen Xers and baby boomers at the same age. This translates into 3.4 million fewer homeowners among these 75 million young adults. UI researchers Laurie Goodman, Jung Hyun Choi, Jun Zhu, writing in the Institute's Urban Wire blog, say that demographic and lifestyle choices, delayed marriage, increasing diversity, have played a role in the decline, it is the economic environment that has been most determinative. They cite three external factors that are hampering the generation, most of whom turned...(read more)

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8/16/2018 6:05:33 AM

Posted To: MBS Commentary

Headlines continue overstating the connection between US market movements and the financial drama in Turkey. Today was especially damaging to the case for correlation as Turkish Lira improved significantly even as US stocks and bond yields sank. The conventional wisdom has been arguing for the OPPOSITE relationship lately (i.e. weaker Lira pushes bond yields and stock prices lower). US markets weren't too troubled by Turkey today. Rather, it was steep losses in Chinese stocks overnight that correlated most readily with declines in US stocks. The stock slump prompted a fair amount of bond buying demand. The trick for bonds was that traders were widely betting on rates moving higher post-Turkish-crisis. As such the unexpected buying demand set of a wave of short-covering resulting in a bit...(read more)

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8/15/2018 2:01:16 PM

Posted To: Mortgage Rate Watch

Mortgage rates fell only modestly today despite a much stronger move in broader bond markets. I spend a lot of time espousing the fact that rates are based on bonds, so it's fair to wonder how days like today happen. Indeed, interest rates are based on bonds, but there are a wide variety of rates and bonds! It's a common misconception that mortgage rates are actually and firmly linked to the 10yr Treasury yield. In reality, this only appears to be the case because the bonds that underlie mortgage tend to move in the same direction as 10yr Treasuries. The magnitude of their moves is also generally the same, but there are notable exceptions. Today was one such exception. In terms of bond prices, 10yr Treasuries did twice as well as mortgage bonds (technically MBS or 'mortgage-backed securities...(read more)

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8/15/2018 11:29:00 AM

Posted To: MND NewsWire

Rising concerns about costs and labor shortages continue to take a toll on home builder sentiment according to the August Housing Market Index (HMI). The Index, a joint product of the National Association of Home Builders (NAHB) and Wells Fargo, dipped another point to 67. The HMI has been moving in a narrow range between 68 and 70 since March. The index scored an 18 year high in of 74 last December and has trended lower since. The August number is the lowest so far this year. The index is a distillation of information gathered through a monthly survey that NAHB has been conducting for 30 years. New home builder members of the association are asked to provide their , perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The...(read more)

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8/15/2018 8:42:15 AM

Posted To: MBS Commentary

From New York, traders have been looking east for at least some level of inspiration from Turkish market volatility. As we've discussed exhaustively, however, that's far from the only game in town. Today brings fresh evidence. In looking east this morning, traders passed right over Turkey and continued on to China, where a sharp move lower in equities futures drove a moderately big sell-off in US equities futures. Bonds picked up some " risk-off " demand as a result, and that ultimately proved to be a good defense against a stronger Retail Sales number this morning. As the chart points out, there was a staggeringly big flattener trade just before Retail Sales. This one was actually reported on the CME's block trade screen, so there's no guesswork. Simply put, a big...(read more)

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8/15/2018 7:45:23 AM

Posted To: Pipeline Press

Bond prices and mortgage rates, like nearly every commodity, are driven by supply and demand. I mention this because early last week prices of US government bonds declined while the yield on the benchmark 10-year Treasury note increased (although it reversed itself due to turmoil in Turkey). Investors bought $34 billion of three-year Treasury notes amid relatively soft demand, with the week bringing the first sales of Treasury notes since the Treasury Department announced it is looking to increase its borrowing in the second half of 2018 to $769 billion, a 63% year-over-year increase. Just something to keep in the back of your mind if you’re hoping for lower rates, or relying on them to help your business model. Corporate Name Changes After 17 years, Georgetown Mortgage, LLC, has outgrown...(read more)

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8/15/2018 7:13:18 AM

Posted To: MND NewsWire

It was another week of decline for mortgage applications as those for home purchase slid for the fifth week in a row. The overall volume of applications, as measured by the Mortgage Bankers Association's (MBA's) Market Composite Index, declined by 2.0 percent on a seasonally adjusted basis during the week ended August 10. On an unadjusted basis the volume lost 3 percent compared to the prior week. The seasonally adjusted Purchase Index decreased by 3 percent and was down 4 percent unadjusted. The unadjusted version was also 3 percent lower than during the corresponding week in 2017. The Refinancing Index did stabilize, remaining at the same level as the previous week. The share of total applications designated for refinancing rose 1 percentage point to 37.6 percent. Refi Index vs 30yr Fixed...(read more)

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8/15/2018 6:09:00 AM
 
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