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Why might I be denied a mortgage?

December 4, 2022

There are probably endless reasons why you could be denied a mortgage, and likely new ones being realized every day. It’s a funny business, really. With so much money at stake and so much risk to lenders if they don’t do their diligence, you can bet you’ll be vetted pretty hard. If anything doesn’t look right, […]

Do I even qualify for a mortgage?

November 17, 2022

Oh yeah, here’s one of the more important mortgage questions out there. Are you actually eligible for a mortgage or are you simply wasting your time and the lender’s? While requirements do vary, most lenders require two years of credit history, clean rental history, and steady employment, along with some assets in the bank. As mentioned, getting […]

Do I need to get pre-qualified for a mortgage?

November 17, 2022

That brings up a good point about getting pre-qualified for a home loan. It’s an important first step to ensure you can actually get a mortgage, while also determining how much you can afford. Two birds, one stone. A more involved process is a mortgage pre-approval, where you actually provide real financial documents to a bank […]

How large of a mortgage can I afford?

October 9, 2022

Some mortgage questions are more subjective than they appear. Can doesn’t always mean should. Here you’ll need to consider home values, how much you make, what your other monthly liabilities are, what you’ve got in your savings account. And what your down payment will be in order to come up with your loan amount. From […]

How large of a mortgage can I afford?

September 20, 2022

Some mortgage questions are more subjective than they appear. Can doesn’t always mean should. Here you’ll need to consider home values, how much you make, what your other monthly liabilities are, what you’ve got in your savings account. And what your down payment will be in order to come up with your loan amount. From […]

What is an FHA mortgage?

August 29, 2022

Speaking of credit scores, FHA loans have very accommodative credit score requirements. We’re talking scores as low as 580 that require just a 3.5% down payment. That’s pretty flexible. Of course, conventional mortgages can be had with just a 3% down payment, though a 620 credit score is needed. FHA stands for Federal Housing Administration, a government […]

What is a mortgage refinance?

July 26, 2022

As the name implies, refinancing simply means obtaining new financing for something you already own (or partially own, like real estate). It’s kind of like a balance transfer where you move your existing loan from one lender to another to get better terms, except it’s a mortgage payoff, not a credit card. If you currently have a […]

What is a mortgage refinance?

July 4, 2022

As the name implies, refinancing simply means obtaining new financing for something you already own (or partially own, like real estate). It’s kind of like a balance transfer where you move your existing loan from one lender to another to get better terms, except it’s a mortgage payoff, not a credit card. If you currently have a […]

How long is my mortgage rate good for?

June 24, 2022

If you’re not asking that question, you should be because rates aren’t set in stone unless you specifically ask them to be. By that, I mean locking in the mortgage rate you negotiate or agree upon with the bank/lender so even if rates change from one day to the next, your rate won’t. Otherwise, you’re merely floating your […]

Frequently Asked Mortgage Questions…

June 17, 2022

1. What will my mortgage rate be? We’ll begin with what always seems to be everyone’s number one concern, saving money. Similar to any other monthly payments you’re attempting to negotiate, it depends on a lot of factors. But I can at least clear up a few items to give you an idea of how […]

Loan Lingo 101

May 27, 2022

Appraisal: A written estimate used to determine the value of your property based on information on recent sales of similar properties.

What is PMI??

May 27, 2022

PMI is a type of insurance required on conventional loans where the loan amount is greater than 80% of the purchase price or property value. Once a minimum of 20% equity has been established, PMI may be eliminated

Top Reasons to Use a HELOC

April 4, 2022

You only pay when you use it. When you get a HELOC, you’re not taking a lump sum of cash out of your home. You’re setting it up as a maximum drawable balance, and if you always left the balance at zero, your payment would be zero. This makes a HELOC a flexible tool to have […]

How much are closing costs?

February 18, 2022

Typically, home buyers will pay between about 2 to 5 percent of the purchase price of their home in closing fees. So, if your home cost $150,000, you might pay between $3,000 and $7,500 in closing costs. On average, buyers pay roughly $3,700 in closing fees, according to a recent survey. Your lender will give […]

What are closing costs?

February 18, 2022

Closing costs are fees associated with your home purchase that are paid at the closing of a real estate transaction. Closing is the point in time when the title of the property is transferred from the seller to the buyer. Closing costs are incurred by either the buyer or seller.

Financing Tip for First Time Home Owners:  Make sure you understand the full cost of homeownership

February 4, 2022

As a first-time home buyer, you’re probably accustomed to the monthly cost of renting, which usually includes your rent payment, some of the utilities, and your internet and cable bills. As a homeowner, you’ll be responsible for additional monthly costs that may have been covered by your landlord. That includes things like water, sewer and […]

What Is the Risk of a Biweekly Payment Program?

January 22, 2022

Some biweekly payment programs — especially those run by third-party companies other than the lender that sends your loan statements to you each month–will charge fees for this service. They can charge significant upfront fees, plus small fees along the way for each biweekly payment processed. It can take up to 10 years for participants […]

What Is a Reverse Mortgage?

January 19, 2022

A reverse mortgage is a loan that allows qualified homeowners who are age 62 or older to take part of their home’s equity as cash, either as a line of credit, or monthly or lump sum payment, or combo of a credit line and payments. But, unlike a standard mortgage loan, it requires no repayment […]

Options if Your Current Home is Still for Sale

November 18, 2021

In an ideal world, the sale of your current home will happen seamlessly along with the purchase of your new home. But in reality, these two steps don’t always align. If you are hoping to buy before your current home sells, here are a few loan options that can help make the process smoother: Home […]

How to Save Thousands on Your Mortgage

October 22, 2021

Buying a house may be the largest purchase most consumers ever make. So it’s surprising that over half (52 percent) don’t shop around for a lender. That’s like buying the first car you see or trusting that one gas station will always give you the best price. It’s an oversight that could hit your wallet in […]

Mortgages for Unique Situations

October 8, 2021

When you plan to stay for the long haul Fixed-rate loans are popular with those planning to stay put in their home for a while because they offer payment stability. These loans offer the same interest rate for the entire repayment term, normally 10, 15, 20, or 30 years. The shorter the loan term, the […]

What is an FHA Loan?

September 29, 2021

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. Borrowers can qualify for an FHA loan with a down payment […]

Myth: It’s always best to get a 30-year fixed-rate mortgage.

September 13, 2021

Wrong again. The 30-year fixed mortgage is certainly a popular option, but there are many mortgage options out there. Something besides a 30-year fixed rate mortgage might be better for your needs, perhaps offering a short-term solution (and super low rate) if you know you’re only going to live in an area for a couple of […]

Find Out Your Credit Score

September 3, 2021

To get the best rate possible, the first thing you’ll want to do is make sure your credit is ready. Most lenders will use your Fair Issac or FICO credit score when they price your loan. Typically the higher your FICO credit score, the lower your interest rate will be. If you don’t know your […]

Vacation Home vs. Rental Property

August 20, 2021

Vacation properties and rental homes are financed differently. So before buying your new home away from home, you’ll need to figure out how yours will be classified. A vacation home is typically defined as a secondary residence at least 50 miles away from your primary residence. If it’s any closer to your primary home, you’ll […]

Home Equity Loans

August 10, 2021

If you don’t have money for a down payment but do have a lot of equity in your current home, you could consider taking out a second mortgage to finance your down payment. There are two options to consider: a home equity line of credit (HELOC) or home equity loan. Both options allow you to borrow against […]

Myth: You’ll need perfect credit.

July 23, 2021

Few people have perfect credit — and that’s not what lenders are looking for anyway. If you have a steady income and pay your bills on time, it may be possible to qualify for a mortgage. The minimum credit score you’ll need depends on the loan type. For example, conventional loans typically require at least 620, and FHA […]

Mortgage Myth: Find a home first, then worry about financing.

July 8, 2021

This is a very painful lesson for many first-time buyers who fall in love with a home only to learn they can’t qualify. That’s why it’s important to consult with a lender before you embark on your home-buying journey. A lender will ask a few questions and check your credit to pre-approve you. This process […]

Home Equity Loans

June 18, 2021

If you don’t have money for a down payment but do have a lot of equity in your current home, you could consider taking out a second mortgage to finance your down payment. There are two options to consider: a home equity line of credit (HELOC) or home equity loan. Both options allow you to borrow against […]

Getting pre-approved

June 10, 2021

If you haven’t done so already, contact a lender for a pre-approval. You can even start the process online by finding a local lender on Zillow. A pre-approval is a letter from a lender that indicates you can qualify for a loan of a certain amount. It shows your agent and sellers that you’re a serious buyer […]

Reasons to Use (and Not Use) a HELOC

June 3, 2021

Home equity lines of credit (HELOCs) are home loans that allow you to take cash out of your home as needed. A HELOC works a lot like a credit card, in that you put it in place with a maximum allowable balance, and you can draw on that balance and pay it down over a set […]

How Much Does a Credit Pull Really Hurt?

May 19, 2021

When you’re in the market for a mortgage, it’s best to shop around to find the best rates or get better lender fees. But because this process typically involves multiple lenders checking your credit score, many buyers are concerned these credit inquiries or often referred to as “credit pulls” will hurt their score, leaving them […]

How to Finance a Vacation Home

May 7, 2021

If you dream of owning your very own mountain getaway cabin or ocean-side condo retreat, you’re not alone.  And for good reason. Owning a vacation home is a luxury that can also potentially turn out to be a good investment as property values rise. If you’re wondering how you might make that a dream a […]

How Do Most People Prepay Their Mortgage?

April 26, 2021

People prepay their mortgages in a variety of ways, but one of the more popular methods is to pay a little extra on your loan each month, which over the life of the loan could save you thousands or even tens of thousands of dollars. Let’s say you owe $100,000 on your 30-year loan at […]

What Is a Biweekly Payment Program?

April 16, 2021

A biweekly mortgage payment plan allows you to make half your mortgage payment every other week. Doing so means you’re making 26 half-payments per year, which is the equivalent of 13 full monthly payments per year instead of 12. This is a slight budget increase overall, but spreading it out over twice a month instead […]

What Are Closing Costs and How Much Are They?

March 26, 2021

In this article: What are closing costs? Closing costs are fees associated with your home purchase that are paid at the closing of a real estate transaction. Closing is the point in time when the title of the property is transferred from the seller to the buyer. Closing costs are incurred by either the buyer or seller. What […]

How Much Home Can I Really Afford?

March 16, 2021

An affordability calculator is a great first step to estimate how much home you can afford. But here are some other things to consider when figuring out your home shopping budget. The 28/36 Rule for Affordability One rule of thumb that lenders may use to assess how much of a mortgage you qualify for is […]

Myth: Find a home first, then worry about financing.

March 4, 2021

This is a very painful lesson for many first-time buyers who fall in love with a home only to learn they can’t qualify. That’s why it’s important to consult with a lender before you embark on your home-buying journey. A lender will ask a few questions and check your credit to pre-approve you. This process […]

Mortgage Types

February 26, 2021

Everybody has different mortgage needs – which is why a variety of different loan types are offered. The most common home loans include: Fixed rate mortgage: This is the most commonly sought loan option. As the name suggests, the rate stays the same throughout the life of your loan. Many borrowers start out with a 30-year fixed, […]

What Is a Reverse Mortgage?

February 16, 2021

In a word, a reverse mortgage is a loan. A homeowner who is 62 or older and has considerable home equity can borrow against the value of their home and receive funds as a lump sum, fixed monthly payment or line of credit. Unlike a forward mortgage—the type used to buy a home—a reverse mortgage doesn’t […]

Can I Get a Mortgage After a Short Sale?

January 27, 2021

In this article: When you owe more on your home than it’s worth and need to sell, the transaction is called a short sale. Because your lender must agree to accept less than they’re owed when a short sale closes, it negatively impacts your credit profile and your ability to finance a home in the […]

6 Steps to Expect During the Mortgage Process

January 21, 2021

So you’ve decided to buy a new home — congratulations! You’re probably feeling a lot of emotions right now. Elation. Anxiety. And possibly confusion. You may wonder what’s going to happen next. Or worry that if you forget to send a document or make a call, you’ll derail the process. First of all, relax. Most […]

How to Buy a Home Without a Sale Contingency

January 11, 2021

You’ve landed a new job — across the country — or your family is growing (again). Regardless, the plan is to put your existing home on the market and buy a new one. That means you’ll be paying the mortgage on your existing home (until you close on its sale) and, at the same time, […]

What is PITI?

December 16, 2020

What is PITI? PITI (pronounced “pity”) is an acronym for the principal, interest, taxes and insurance that make up the sum of a mortgage payment. Principal pays down the loan balance; interest is the cost of borrowing; taxes are the property taxes; and insurance includes homeowners insurance and mortgage insurance, if applicable. Frequently, first-time home buyers shopping for a new home might only factor into […]

What is a Good Faith Estimate (GFE)?

December 9, 2020

What is a GFE? A GFE, also referred to as a good faith estimate, is a document that includes the breakdown of approximate payments due upon the closing of a mortgage loan. A GFE helps borrowers shop and compare costs of loans with lenders. You are not obligated to accept the loan just because you […]

Mortgage Myth Debunked

December 2, 2020

Myth: You’ll need perfect credit. Few people have perfect credit — and that’s not what lenders are looking for anyway. If you have a steady income and pay your bills on time, it may be possible to qualify for a mortgage. The minimum credit score you’ll need depends on the loan type. For example, conventional loans typically require […]

VA Loans – Most Frequently Asked Questions

November 6, 2020

In this article: Find answers to the most common questions about VA loans. Learn about eligibility requirements, VA loan fees, and VA appraisals. See how your credit score and past bankruptcy might affect your ability to get a VA loan. Can I get a loan from the VA to buy a house? The U.S. Department […]

Can I Get a Mortgage After a Short Sale?

October 21, 2020

In this article: When you owe more on your home than it’s worth and need to sell, the transaction is called a short sale. Because your lender must agree to accept less than they’re owed when a short sale closes, it negatively impacts your credit profile and your ability to finance a home in the […]

How to Buy a Home Without a Sale Contingency

October 7, 2020

You’ve landed a new job — across the country — or your family is growing (again). Regardless, the plan is to put your existing home on the market and buy a new one. That means you’ll be paying the mortgage on your existing home (until you close on its sale) and, at the same time, […]

What is a Mortgage Broker?

September 30, 2020

Mortgage brokers are like a matchmaking service: They match you, the borrower, with a lender. They review your personal financial information and look over an array of lenders and try to match you with one who will give you the best rate and terms. The advantage is choice because the broker will have lots of […]

What Does a Title Company Do?

September 24, 2020

A title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title. Title companies also often maintain escrow accounts — these contain […]

How to Save Thousands on Your Mortgage

September 15, 2020

Buying a house may be the largest purchase most consumers ever make. So it’s surprising that over half (52 percent) don’t shop around for a lender. That’s like buying the first car you see or trusting that one gas station will always give you the best price. It’s an oversight that could hit your wallet in […]

Should You Pre-Pay Your Mortgage?

September 10, 2020

Prepaying Your Mortgage Prepaying your mortgage — which simply means that you pay all or part of the money owed on your mortgage before it’s officially due — offers an alluring proposition: By paying what you owe early, you can cut down the amount of interest you owe to the lender, which can save you […]

What to Expect in the Loan Process When You’re Also Selling

September 3, 2020

Buying your first home was a huge endeavor. Remember the research? The piles of paperwork to review and sign? The deadlines? (If you’re a first-time buyer, check out the steps you can expect during the mortgage process.) Although you’re now a homeowner, get ready to relive all that stress and angst again to purchase a new […]

What Is Negative Equity?

August 26, 2020

What is Negative Equity? Home equity is how much of your home’s value you actually own versus the amount that is financed. Your equity changes all the time as your home’s value fluctuates, and as you pay down your loan. If your home’s value drops below your outstanding loan balance, you have negative equity. Calculate […]

What First-Time Home Buyers Wish They Knew About Financing

August 19, 2020

With over 45% of buyers purchasing a home for the first time, a big chunk of home buyers are newly experiencing the fierce complexities and challenges of buying a home. And financing is, without a doubt, an important factor for those looking to own. Most buyers (77%) obtain a mortgage to finance their home, according […]

How Renters Can Prepare to Be Buyers

August 12, 2020

If you feel like you’re throwing away money every month for rent and would rather start building equity yourself, you’re not alone. Although renters account for 37 percent of all households in America, half considered buying a home instead, according to the Zillow Group Consumer Housing Trends Report 2017. Even though many renters would like to […]

How Much Can You Afford and What Will It Get You?

August 6, 2020

When it comes to buying a house, the numbers get so big they can start to lose meaning. You may pass on $2 generic toothpaste in favor of the $2.25 brand-name, but zeros can really add up when it comes to a home. You can’t buy a $225,000 home on a $200,000 budget, even if […]

How to Save Thousands on Your Mortgage

July 29, 2020

Buying a house may be the largest purchase most consumers ever make. So it’s surprising that over half (52 percent) don’t shop around for a lender. That’s like buying the first car you see or trusting that one gas station will always give you the best price. It’s an oversight that could hit your wallet in […]

What to Expect in the Loan Process When You’re Also Selling

July 23, 2020

Buying your first home was a huge endeavor. Remember the research? The piles of paperwork to review and sign? The deadlines? (If you’re a first-time buyer, check out the steps you can expect during the mortgage process.) Although you’re now a homeowner, get ready to relive all that stress and angst again to purchase a new […]

Top Loan Types for Unique Situations

July 15, 2020

As you begin your home-shopping journey, you might hear a lot about the 30-year conventional fixed-rate mortgage. And there’s no doubt it’s a great product for many buyers. But not all. In fact, there other mortgage options that could be better for your needs, perhaps offering a short-term solution (and super low rate) if you know […]

The Differences between Pre-Approval and Pre-Qualification

July 8, 2020

According to the Consumer Finance Protection Bureau, there is often not a lot of difference between pre-approval and pre-qualification. Sometimes, lenders use the terms “pre-qualification” and “pre-approval” interchangeably. And different lenders might have different definitions for each. But generally, here’s how the two may differ. Pre-qualification is often seen as the first step in the […]

Mortgage Basics: How Lenders Evaluate You

July 3, 2020

To qualify you, lenders look at three main factors: 1. Affordability. Lenders use a debt-to-income (DTI) ratio which tells them what percentage of your income will be going towards all of your bills. They will let you spend as much as 43 percent of your income on housing and non-housing bills. 2. Credit health. Lenders will run […]

4 Reasons to Refinance Your Mortgage

July 1, 2020

1. Get a Lower Interest Rate Getting a lower interest rate is the most popular reason to refinance a mortgage. It simply means you are swapping a higher interest rate for a lower one, which can save you considerably on your monthly mortgage payments. It can also help you save thousands of dollars in interest over the life […]

How Much Does a Credit Pull Really Hurt?

June 12, 2020

When you’re in the market for a mortgage, it’s best to shop around to find the best rates or get better lender fees. But because this process typically involves multiple lenders checking your credit score, many buyers are concerned these credit inquiries or often referred to as “credit pulls” will hurt their score, leaving them […]

What Type of Mortgage Is Best for You?

June 4, 2020

Just as homes come in different styles and price ranges, so do the ways you can finance them. While it may be easy to tell if you prefer a rambler to a split-level or a craftsman to a colonial, figuring out what kind of mortgage works best for you requires a little more research. There […]

Loans Aren’t One-Size-Fits-All

May 29, 2020

Just as homes come in various styles and at different price points, so do the ways you can finance them. There are a number of loan options to choose from, but deciding which kind is best for you requires a little bit of time and research. Many home shoppers assume the best choice is the […]

What is an FHA Loan?

May 11, 2020

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. Borrowers can qualify for an FHA loan with a down payment […]

What is a Cash Out Refinance?

April 28, 2020

A cash-out refinance is a refinancing of an existing mortgage loan, where the new mortgage loan is for a larger amount than the existing mortgage loan, and you (the borrower) get the difference between the two loans in cash. Basically, homeowners do cash-out refinances so they can turn some of the equity they’ve built up […]

Homeowners continue to enjoy price gains.

May 15, 2019

According to Lawrence Yun, chief economist for the National Association of Realtors® (NAR), a typical homeowner in the U.S. saw his or her housing wealth increase by $9,500 over the past year.  Yun commented in NAR’s first quarter report on existing home sales that the quarter had been beneficial to homeowners as “the majority of […]

Low Mortgage Rates

May 8, 2019

Mortgage rates change daily, but they have remained in a historically low range for quite some time. If you’re in the market for a mortgage, it could make sense to lock if you see a rate you like. Just make sure you’ve looked around for the best rate first.

Mortgage Rates Are Actually Higher This Week

May 3, 2019

Mortgage ratesdidn’t move much today, but the average lender is quoting microscopically higher rates, if anything.  Week-over-week, it wouldn’t be unfair to claim that rates are slightly lower.  Today’s average news coverage suggests the same due to the weekly release of Freddie Mac’s mortgage rate survey. 

Lower Rates

April 25, 2019

Mortgage rates moved lower at their best pace in several weeks today, with the average lender making it back to levels not seen since April 12th.

The next housing boom looks more sustainable.

April 15, 2019

Rising minimum wages will allow many working-class Americans to buy a first home.  The housing boom doesn’t have to be followed by a painful bust. The boom of the last decade was powered by speculative froth and lax mortgage underwriting – and it ended predictably badly. The present day, with large employers continuing to raise […]

Lowest Rates In April

April 11, 2019

Mortgage rates dropped yesterday. It wasn’t a huge move, but they didn’t have to go very far to get to the best levels of the month. To be fair, many prospective borrowers are still seeing the same interest rate at the top of a loan quote that they would have seen any time in the […]

Home Buyers (And Sellers) Much More Upbeat in March

April 9, 2019

A few couple of warm days, the appearance of a few tulips, and wham, homebuyer sentiment goes through the roof.  At least the results from the March National Housing Survey (NHS) seem to support that theory.  Net positive responses to whether it is currently a good time to buy and/or sell a home shot up 7 […]

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April 2, 2019

Corelogic, the real estate data and analytics company, predicts that annual gains in home prices could hit close to 5 percent by 2020, thanks to falling interest rates.

For Mortgage Rates, “High 3’s” In Sight Once Again.

March 27, 2019

Mortgage rates took the day to do just a little bit more of what they’ve been doing in fairly grand fashion for the past week: MOVE LOWER! When the good times started in earnest, rates were already in line with their lowest levels in more than a year. As of today, they’re another quarter or […]

Mortgage rates are now breaking to new lower territory, and they could stay there for months

March 22, 2019

-The average rate on the 30-year fixed mortgage is falling again today, as investors rush into the bond market. The average lender today is offering a rate between 4.125 and 4.25 percent, with more aggressive lenders going to 3.875 percent for borrowers with pristine applications, according to Mortgage News Daily.

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March 20, 2019

Two terms that are often (and incorrectly) used interchangeably are “pre-qualified” and “pre-approved”. A Pre-Qualification typically means a buyer has spoken with a lender (who may or may not have pulled a credit report) and verbally discussed employment, liabilities, payment histories, and assets. A true Pre-Approval, on the other hand, entails a strict review of […]

Surge of New Home Sales in West Salvage January Numbers

March 14, 2019

It seems like only yesterday that we were looking at the December new home sale numbers – well actually it was 6 days ago. Now we have the January sales numbers as the Census Bureau and the Department of Housing and Urban Development continue to catch up from the shutdown’s data drought.

CoreLogic Price Gains Moderating, But Expected to Increase This Year

March 5, 2019

BY JANN SWANSON It is our first glance at home prices in the new year and CoreLogic estimates the rate of appreciation has fallen by more than 2 percentage points since January 2018. However, the company also predicts a small uptick in the rate of increase over the next 12 months. CoreLogic Price Gains Moderating, […]

A Surprise in Pending Sales Kicks Off 2019

February 27, 2019

BY JANN SWANSON Expectations were high for a strong pending home sales report to christen the New Year. Those expectations were more than satisfied. The National Association of Realtors® (NAR) says its Pending Home Sales Index (PHSI) jumped 4.6 percent, climbing to 103.2 in January from 98,7 in December. It was the first gain in […]

MBS Day Ahead: Tariff Extension is Old News as Bonds Wait For Powell and Data

February 25, 2019

BY MATTHEW GRAHAM The “big” news over the weekend was the announcement of an extension on US/China tariffs that were set to go into effect on March 1st. While an eventual trade deal would still be a big development for both sides of the market, the extension was only worth a modest in-range correction for […]

Closing Rate, Refinance Share Rose in January

February 21, 2019

BY JANN SWANSON A 16-basis point drop to 5.01 percent in the average rate for 30-year fixed-rate mortgages was given only partial credit for a sizable uptick in the refinancing share of originations in January. Ellie Mae’s Origination Insight Report for the month shows the refinancing share of originations jumped to 35 percent from 29 […]

MBS Week Ahead: Shutdown Data Finally Starts to Flow as Next Shutdown Looms

February 11, 2019

BY MATTHEW GRAHAM The two key fiscal issues at the moment are the trade deal with China and the expiration of temporary government funding at the end of this week. Between those two, the trade deal is by far and away the bigger deal for markets. The shutdown is still important, however, due to its […]

Aging-in-Place Trend Contributing to Tight Inventories

February 6, 2019

BY JANN SWANSON In their December Insight report Freddie Mac’s economists estimated the country will fall short of its housing needs this year by about 2.5 million units. Yet at the same time, fewer members of the Millennial generation are buying houses than young people did in earlier periods. This month the Insights report examines […]

MBS Day Ahead: Paying The Price For Asymmetric Risk

February 4, 2019

BY: MATTHEW GRAHAM Last week’s key events were the Fed announcement on Wednesday and the jobs report on Friday (with other econ data playing a strong supporting role).  The Fed helped bonds.  They were much friendlier than expected, but critically, they justified that friendliness with concerns over economic growth.  In short, they are watching economic data […]

Mortgage Rates Could Be More Volatile Next Week

January 28, 2019

BY: MATTHEW GRAHAM Jan 25 2019, 6:00PM Mortgage rates were only slightly higher today, and didn’t rise enough to make it above the levels that showed up somewhat abruptly on Wednesday.  That keeps this week fairly tame in terms of volatility.  In fact, most of January has been fairly calm after rates initially rebounded from the long-term lows […]

New Home Sales Pull Back Amid Global Uncertainty

January 18, 2019

BY JANN SWANSON Applications for new home purchases dropped in December, falling 6.8 percent behind those a year earlier. The deficit from November was even larger, a decline of 13 percent. The Mortgage Bankers Association (MBA) estimates that those numbers, which do not include any adjustment for seasonal patterns, translates into new home sales during […]

Mortgage Rates Unchanged to Start the Week

January 15, 2019

BY MATTHEW GRAHAM Mortgage rates held their ground today, keeping them in line with long-term lows achieved over the past 2 weeks. To be fair, it was the previous week that offered the biggest benefits, but last week was no slouch. Factoring out the first few days of January, it would have been the best […]

Small Price and Rate Changes Make a Big Difference for Homebuyers

January 10, 2019

BY JANN SWANSON As home sales have slowed, attention has shifted to the subject of affordability. The combination of rising home prices and higher interest rates is blamed by many as the cause of the lagging sales. Small Price and Rate Changes Make a Big Difference for Homebuyers

Despite Disaster Impacts, Loans are Performing Historically Well

January 8, 2019

BY JANN SWANSON Some housing market analysts have found recent trends in construction, home sales, and diminishing affordability disquieting and perhaps early warning signs of another housing-led recession. They may find loan performance metrics reassuring. CoreLogic’s report for October indicates that, except for the impact of several recent natural disasters, those metrics are exceptional. http://www.mortgagenewsdaily.com/01082019_corelogic_delinquency_report.asp

Another Dim Outlook for Refinancing

January 4, 2019

BY JANN SWANSON Refinancing activity has probably held up better than expected as interest rates have risen. Refinance applications accounted for more than 40 percent of the total in each of the Mortgage Bankers Association’s weekly application volume summaries in December, aided by an unexpected dip in rates. But CoreLogic’s chief economic Frank Nothaft is […]

November Home Price Gains Slowing , Still up 5.1% YoY

January 2, 2019

BY JANN SWANSON Home prices grew by an estimated 0.4 percent in November according to CoreLogic’s Home Price Index (HPI) and were 5.1 percent higher than at the end of November 2017. These figures indicate a significant slowdown in the rate of appreciation nationally over the past year. The company reported a 1.0 percent gain […]

Builder Confidence: Lower Rates Helping With Affordability Concerns

December 17, 2018

BY JANN SWANSON The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) is flirting with the danger zone. Although stressing that the index remains in positive territory, NAHB said its measure of home builder confidence lost 4 points compared to November, landing at 56. It was the lowest reading since May 2015 […]

Not Just the Season; MBA Predicts New Home Sales Down Sharply

December 13, 2018

BY JANN SWANSON The Mortgage Bankers Association (MBA) added a little more evidence to the pile indicating a rather rapid slow-down in the housing market. MBA’s Builder Application Survey (BAS) data for November shows mortgage applications for newly constructed home purchases falling by 14 percent compared to October. The MBA data is not adjusted to […]

Lenders Looking to New Tech as Pessimism Over Profit Margins Grows

December 12, 2018

BY JANN SWANSON Lenders continue to be pessimistic about their profit outlook as 2018 draws to an end. Fannie Mae said its fourth quarter 2018 Mortgage Lender Sentiment Survey found the profit outlook reported by respondents at an all-time survey low. This was true whether they were talking about purchase or refinance mortgages or about […]

MBS Day Ahead: Bounce Risk Remains; Hoping For Pre-Fed Consolidation

December 11, 2018

BY MATTHEW GRAHAM Consolidation… That’s that word we use to refer to sideways and frequently narrower trading ranges that follow a period of more directional movement (you can click on the word to go to a full definition). Consolidation is the best case scenario right now, when it comes to defining the modest weakness seen […]

Better Access to Conforming Loans Means More First-Timers in Market

December 7, 2018

BY JANN SWANSON Access to mortgage credit moved higher in November, largely due to improved access to conforming mortgages. The Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI increased 1.1 percent to 188.8. Read More

Mortgage Applications Bouncing Back

December 5, 2018

BY JANN SWANSON Mortgage rates remained largely flat or even slightly lower during the week ended November 30. This probably helped to maintain the upward trend in mortgage applications that began the previous week during the Thanksgiving holiday and despite a shortened work week. Read More

November Was a Great Month For Mortgage Rates

December 3, 2018

BY MATTHEW GRAHAM Mortgage rates may have ebbed slightly higher today, but that only erased a fraction of the improvement seen over the past 2 days. Combined with the even stronger showing 2 weeks ago, this makes November the best month of 2018 in terms of mortgage rate improvement. Read More

Housing Forecasts: When Cooling Isn’t so Cool.

November 28, 2018

BY JANN SWANSON With both interest rates and home prices rising it is nearly impossible to find a housing forecast that doesn’t include the word “cooling.” The November outlook from Freddie Mac is no exception. The company’s Economic and Housing Group, in fact, applies that word to the entire issue of economic growth, noting the […]

After a Steady Run, Builder Confidence Finally Folds

November 19, 2018

BY JANN SWANSON Builder confidence took a steep dive this month, reflecting increasing news of slowing home sales and rising concerns over affordability. The National Association of Home Builders (NAHB) said its Housing Market Index (HMI), a joint project of NAHB and Wells Fargo, dropped eight points. The index, which has been floating in the […]

Afternoon Mortgage Rate Improvements For Most Lenders

November 15, 2018

BY MATTHEW GRAHAM Mortgage rates began the day in roughly unchanged territory. Some lenders were microscopically stronger or weaker compared to yesterday, but not enough to impact the average mortgage borrower. For the first few hours of the day, it looked as if rates would stay unchanged or possibly move slightly higher. That all changed […]

Mortgage Rates Edge Back Up to Early 2011 Levels

November 9, 2018

BY MATTHEW GRAHAM Mortgage rates moved back up today, leaving them right in line with the highest levels of the week. These also happen to be the highest levels since early 2011, but let’s not get bogged down in unfortunate details! Rates will definitely move lower at some point in the future. That’s the way […]

Mortgage Apps: Down to Four-Year Low, Highest Rates Since 2010

November 7, 2018

BY JANN SWANSON The week ended November 2 was another week of retreat for mortgage applications as the Mortgage Bankers Association’s (MBA’s) Market Composite Index dropped by 4.0 percent on a seasonally adjusted basis. This brought the index to its lowest level since December 2014. The index was down 2.0 percent on an unadjusted basis […]

At Last, A Positive Housing Report!

October 29, 2018

BY JANN SWANSON The National Association of Realtors® (NAR) just issued the first positive pending home sales report in months. Pending sales, a leading indicator for existing home sales, rose slightly in a month which saw declining sales of existing homes and a fairly devastating report on sales of newly constructed ones. NAR’s Pending Home […]

Loan Limit Thoughts; Long List of Credit Changes and Lender Updates

October 23, 2018

BY ROB CHRISMAN Historically the FHFA, and with it Freddie and Fannie, announce official loan levels for the following year soon after Thanksgiving. (There are always rumors prior.) The loan limits are based on home prices around the nation. After 2008, despite the prices in many areas dropping, the Agencies did what they could to […]

Freddie Mac Announces More “Big Data” Tools

October 15, 2018

BY JANN SWANSON Freddie Mac is announcing a couple of enhancements to its Loan Advisor underwriting tool. The additional capabilities will allow lenders to automate the assessment of borrower income and assets to reduce documentation which the company says will significantly speed-up the approval process. Read More

Mortgage Rates Not Impressed by Market Volatility

October 11, 2018

BY MATTHEW GRAHAM Mortgage rates are based on mortgage-backed securities (MBS), which are essentially bonds. Conventional wisdom holds that stocks and bonds supplement one another, and that as “money moves in” to one side of the market, it will move out of the other. Conventional wisdom is super duper wrong! If conventional wisdom held true […]

Freddie Mac Gives Shared Equity Ownership a Closer Look

October 1, 2018

BY JANN SWANSON Freddie Mac made two announcements this week. The first is a long expected administrative change to requirements for private mortgage insurance (PMI) which will go into effect on March 31, 2019. The company updated these requirements under a mandate from its regulator the Federal Housing Finance Agency (FHFA), incorporating changes related to […]

MBS Week Ahead: Lighter Data This Week as Markets Position for Fed Next Week

September 17, 2018

BY MATTHEW GRAHAM September continues to be an unfriendly month for bonds, marked by an unfriendly trend that has carried yields almost exclusively higher. Some of the weakness can be chalked up to pent up selling demand that was on hold through the end of August, but economic data and supply situation (lots of bonds […]

Mortage Rates Slightly Lower

September 13, 2018

Mortage Rates Slightly Lower 9-13-18 BY MATTHEW GRAHAM Mortgage rates fell modestly today, following a weaker-than expected report on inflation. The Consumer Price Index (CPI) measures the change in prices that consumers pay for various goods. The widely followed “core” reading (which ignores more volatile food and energy prices) fell to an annual pace of […]

Behaviors of the”Financially strapped “

June 8, 2018

In this time of financial hardship, so many Americans are wondering how they can escape a life of having to struggle day-to-day and year to year. We can talk all we want about saving and planning for the future, but we must get more specific if we are going to overcome the challenges we face. […]

Financial Mistakes most graduates make..

June 6, 2018

Graduating from college and entering the “real world” can inflict total chaos on your life: Suddenly, you have to figure out how to feed yourself without the assistance of a 24-hour dining hall. It’s overwhelming, but not insurmountable. These mistakes and their solutions, adapted from Generation Earn: The Young Professional’s Guide to Spending, Investing and […]

Save more money now…with small changes!

January 10, 2018

You may think you’ve done it all: You’re careful with a buck, don’t over indulge, and stash away as much as you can for future goals. But while it may not seem as if there’s any more you can comfortably squeeze from your budget, there are ways to save more–painless ways, in fact–to save $50,000 […]

Current Economic Climate

January 8, 2018

After a deep recession in which we lost approximately eight million jobs, America’s economy has been quite consistent with regard to the creation of jobs during the past several years. For example, during the period of 2013 to 2017, just over 10 million jobs were created. That comes to just over 200,000 jobs per month. […]

Time Management 101

October 20, 2017

There is no doubt that time is a business person’s most precious resource. In fact, time is everyone’s most precious resource. We never realize how precious time is until we run out of it. George Burns had 100 years, yet he never had time for his final performance. We all waste too much of this […]

How To Overcome Market Downturns!

October 13, 2017

You can’t understand it. You have had all the right training. You would like to make a lot of money. The market is not particularly strong, but it does support people who transact more business than you. Every month you say that you will break through. Yet, it does not happen. What is wrong? Sales […]

The Story continues….

October 11, 2017

The Story Continues With the release of last month’s job numbers, we were able to get a glimpse of the major effects of three major hurricanes hitting within a few weeks. We have seen many pictures of devastation from Texas to Puerto Rico. The jobs report was one more picture which has made the national […]

Credit Score killers…what’s killing your credit?

October 6, 2017

Carrying big balances: Running up piles of debt is never a good idea. Keeping a big balance on a credit card can increase your credit utilization ratio, which is the percentage of your credit limit that you use. Together with other measurements of your overall debt, this ratio accounts for about 30% of your credit score. […]

Let’s check on Employment and the Job’s report!!!

October 4, 2017

The jobs report is a very significant economic indicator. Yet, it seems that every monthly jobs report takes on some extra form of significance. This one is certainly no exception, with the report coming in the midst of the recovery from two natural disasters hitting major population centers within the United States. Hurricanes Irma and […]

How to painlessly save $50k or more!!

September 26, 2017

You may think you’ve done it all: You’re careful with a buck, don’t over indulge, and stash away as much as you can for future goals. But while it may not seem as if there’s any more you can comfortably squeeze from your budget, there are ways to save more–painless ways, in fact–to save $50,000 […]

Look in the mirror…yup you are your #1 sales tool

September 21, 2017

Everyone seems to be interested in finding the key to success. If you really want to find the key–stop looking elsewhere for a magic pill. Marketing systems will not be the answer. Use the number one sales tool available–a MIRROR! We are more likely to accomplish more if we change the one thing we have […]

Talk About Money Before Saying “I Do”

September 21, 2017

While many engaged couples are able to hash out which photographer to use at the ceremony and who to sit Aunt Edna next to at the reception, they can’t seem to broach the topic of their finances — a discussion that could make or break their marriage. Money is the leading source of disagreement for […]

Student Loan Debt undermining Millennial Homeownership

September 20, 2017

A new study is providing more evidence that student debt is disrupting the lifecycle of the housing market.  The survey, conducted jointly by the National Association of Realtors (NAR) and the non-profit American Student Assistance (ASA), found that an overwhelming majority of millennials with student debt currently do not own a home.  They blame this debt […]

They are back!

April 25, 2017

Congress is back in session. Not that we are 100% sure that anyone missed them, but certainly there is some unfinished business on the table. For the past few weeks, international news has dominated the markets. Syria, Afghanistan, North Korea and Russia have led this domination, and certainly these world conflicts have influenced the markets […]

Mortgage Rates

April 24, 2017

The late day weakness in bond markets means that we start next week at a bit of a disadvantage. In other words, in the unlikely event that bond markets begin the week at current levels, most lenders will be priced a little higher than they are today. Source: Mortgage News Daily

Savings & Retirement

April 20, 2017

You’re not alone if you have next to nothing saved for retirement. But that doesn’t mean you’re in good company. Almost one-quarter of workers said they and their spouse combined have less than $1,000 saved for retirement, according to a report from the Employee Benefit Research Institute. Nearly half of everyone surveyed said they had […]

A Stark Reminder

April 18, 2017

Actually, we have had a few stark reminders recently. The most recent was the escalation of our engagement in Syria and another, a show of force near the Korean peninsula. Since the election, much of America’s attention has been focused upon domestic issues such as the health care bill, a nomination to the Supreme Court, […]

Profits increased in 2016

April 17, 2017

Independent mortgage banks and mortgage subsidiaries of chartered banks managed to have a slightly more profitable year in 2016 than they did in 2015.  The Mortgage Bankers Association’s (MBA’s) Annual Mortgage Bankers Performance Report said those banks made an average profit of $1,346 on every loan they originated last year, compared to $1,189 per loan […]

Rates push lows for 3 straight days

April 14, 2017

Yesterday mortgage rates set new 2017 lows for the third straight day.

Interesting Jobs Data

April 11, 2017

Every month the jobs numbers are of major interest to analysts who are looking for direction with regard to the economy. In essence, there is no up-to-date economic statistic which is more important, as job growth is the spark which can spur on economic growth, as well as inflationary concerns. In addition, there are certain […]

Anticipation Meets Reality

April 4, 2017

We have used some rather broad terms regarding describing the mood of the markets over the past few months. Words such as “confidence” and “uncertainty.” Today we would like to use another word — “anticipation.” One reason for the markets’ confidence in the past several months has been the anticipation of changes that would spur […]

Alternative Reality

March 28, 2017

No, we are not delving into the world of science fiction. We can’t change what happened. But sometimes it is interesting to wonder what would have happened if an event did not take place. In this case, we are referring to the Federal Reserve Board raising short-term interest rates. As we have previously explained, the […]

Mortgage Rates Stumble

March 24, 2017

Mortgage rates were slightly higher yesterday for the first time in 8 days. The big issue of the day was the healthcare bill.

The Fed Has Spoken

March 22, 2017

Since we spent the past several weeks explaining why the Federal Reserve Board was likely to raise rates last week, we can definitely say that the Fed’s decision was not a surprise — especially since the increase was limited to .25%, which was also expected. A disappointing jobs report could have caused the Fed to […]

The Jobs Report and Fed Meeting

March 15, 2017

The data is in. The jobs report has been released and the Federal Reserve Board’s Open Market Committee is meeting as we release this publication. Keep in mind that the employment numbers are a major factor in affecting the Fed’s decision — but they are not the only factor. The stock market rally, which indicates […]

The Jobs Report and Confidence

March 10, 2017

In the past few weeks we have spoken a lot about confidence. Certainly, confidence has been the major influence behind the recent stock rally. It has also influenced the recent movements in rates and oil prices. If this confidence spills over to a hiring spree, then the chances of another rate increase by the Federal […]

Jobs and Rates

February 28, 2017

It has been a whirlwind start to the year with record stock prices and a new administration coming together. And the year could get a bit more interesting with an employment report due out at the end of next week. Of course, the jobs data is always important, but this report could hold a bit […]

Rental Rates

February 27, 2017

It is always good for residential loan originators to know the rental situation in their area. If rental rates, or house prices, are going up 5% a year and incomes are only going up 2% a year, well, that is a problem. Until recently, the combination of a shortage of multifamily units, booming demographic demand […]

Mortgage rates are lower

February 23, 2017

Mortgage rates moved lower, bringing them to their lowest levels since February 9th. However the changes have been so small that they can really only be measured in terms of closing costs.

Optimism Versus Uncertainty

February 21, 2017

During the past few months we have had a very solid rally in the stock market, which has been accompanied by higher interest rates. Certainly, the economic results that have been released have not changed that much during that period, and thus we can conclude that the changes in the markets are not because of […]

The Barrage of Executive Orders

February 14, 2017

As we indicated previously, we are not about to speculate as to what might happen as a result of the policies of the new Administration. There is still a tremendous road to be laid. However, we can say that the President has moved quickly to issue a barrage of Executive Orders during his first weeks […]

Where the Economy Stands

February 8, 2017

Certainly, this past week was one to get a good assessment of where the economy stands coming into the new year and a new Presidency. In the past week or so, we have had reports on overall economic growth for 2016; personal income and spending for December; the jobs report for January; and a meeting […]

Trump

February 3, 2017

Residential lenders are paying raptly following the news that President Donald Trump intends to roll back much of the 2010 Dodd-Frank financial regulations through an executive order today at noon ET, and work toward rescinding the Department of Labor’s fiduciary rule.

The Fed and the State of Interest Rates

January 31, 2017

The start of a new year is a good time to reflect as we previously have on the state of jobs and real estate. Another important factor we are monitoring is the movement of interest rates. There is no doubt about the fact that one benefit of our very slow and steady recovery from the […]

The Inauguration

January 24, 2017

We do want to wish President Trump well, along with his administration and Congress. They certainly have a daunting task head of them, as does every new government. As an example, President Obama came in facing the deepest recession we had seen since the Great Depression — quite a challenge. Though there is a new […]

Fed Blackout

January 23, 2017

The absence of major relevant data and Fed speakers leaves the focus on Trump’s first week in office. To whatever extent policies begin rolling out, markets are eager to react. There’s no particular leaning here–just a reminder that political headlines may be one of the only games in town.

Mortagage Rates & U.K

June 27, 2016

Mortgage rates plummeted Friday following the U.K. leaving the European Union.

Rates Drop

June 24, 2016

Rates at all time lows

Home Sales

June 23, 2016

New home sales dropped, sales in the Northeast fell by 33.3 percent compared to April but were 30.8 percent higher than a year earlier.

Interest Rates drop

June 22, 2016

Refinancing gained ground as interest rates fell during the week ended June 17.

Mortgage Applications

June 15, 2016

The Mortgage Bankers Association reported today that its MCI, dropped 2.4 percent compared to the week ended June 3 for FHA loans. Refinance applications are down 1 percent but overall up 55.3%. Purchase applications were down 5%.

Mortgage Rates

June 7, 2016

Mortgage rates moved slightly higher today

High rent

June 2, 2016

High rent is driving people to become homeowners

Applications Decline

June 1, 2016

Applications for purchases and refinancing declined in the last week of May.

FHA Changes

May 31, 2016

FHA published its Home Equity Conversion Mortgage (HECM) proposed rule, Strengthening the Home Equity Conversion Mortgage Program in the Federal Register.

Zombie Homes

May 31, 2016

Zombie foreclosures are down 36 percent in the current quarter compared to the same period in 2015.

National Index

May 31, 2016

The National Index, which covers all nine U.S. census districts, was up 5.2 percent in home prices compared to March 2015.

Mortgage Rates

May 27, 2016

Mortgage rates moved modestly lower yesterday. Given that rates had spiked last Wednesday, it was enough to get rates to the best levels seen since last Tuesday.

Bond Markets

May 25, 2016

As bond yields began rising last week, June was likely target for the next hike, but seems like it has shifted toward July.

Mortgage Rates

May 24, 2016

Mortgage rates were mixed today, depending on the lender.

Home Sales Rising

May 24, 2016

The Census Bureau and the Department of Housing and Urban Development said today that sales were at a seasonally adjusted annual rate of 619,000, an increase of 16.6 percent from the previous month and 23.8 percent higher than in April 2015.

Foreclosures

May 23, 2016

The percentage in foreclosures has been dropping all over the U.S.

Home Sales

May 20, 2016

The National Association of Realtors® said today that existing home sales sustained their recent momentum into April and rose 1.7 percent compared to March.

Hello world!

January 29, 2016

Welcome to WordPress. This is your first post. Edit or delete it, then start writing!

Mortgage Rates Remain Unchanged

November 11, 2015

Mortgage rates have not moved any higher but have not moved any lower either.

Rates

October 19, 2015

Mortgage rates remain unchanged

No change

August 12, 2015

No change in application volume overall and purchases continue to decline.

Rates remain low

August 4, 2015

Rates remained low yesterday continuing the improvement we had in July

Refi’s rise with drop in rates

July 29, 2015

Refinance applications have gone up while purchases have gone down.

MBA

July 15, 2015

MBA reported a net drop in its seasonally adjusted Purchase Index of 1.4 percent from the week ended June 26 while its Refinance Index increased 6.5 percent.

NAR

June 22, 2015

The National Association of Realtors said today that sales of existing homes in May were at the highest rate in nearly six years and April sales, originally reported down by more than 3 percent

Rates not moving Higher

June 19, 2015

Nice not to be moving any higher in rate, it would be nicer to see a stronger push toward lower rates.

Rates

June 16, 2015

Changes in Fed policy are more than capable of affecting mortgage rates.

Still on the rise

June 11, 2015

Mortgage rates continue to rise

Fannie Mae Survey

June 9, 2015

Fannie Mae’s May National Housing Survey respondents reporting a significant increase in their household income of the last 12 months climbed 4 percentage points to a near all-time high of 28 percent.

June

June 2, 2015

Rates moved higher in June

Waiting game

May 29, 2015

Things have been better this week compared to the last couple weeks. Now we just have to wait and see how June turns out.

Light at the end of the tunnel

May 28, 2015

May is almost over and bond markets seem to be getting better

Bonds

May 27, 2015

On an otherwise quiet morning, bond markets had been holding in reasonably strong territory.

New Homes Sales

May 26, 2015

New home sales beat most analyst expectations in April, rising 6.8 percent to a seasonally adjusted annual rate of 517,000 units and posting a 26.1 percent gain over the annual pace of 410,000 units in March 2014

More purchases than refi’s

May 22, 2015

Purchase loans continued to increase as a percentage of loan originations in April

No Change

May 21, 2015

Mortgage rates yesterday ended unchanged

Composite Index

May 20, 2015

The decline of the Composite Index this week was driven the largest drop in purchase mortgages since February.

Finally!

May 15, 2015

Mortgage rates finally caught a break. For most borrowers, the improvement will simply decrease the closing costs associated with the rates they were already being quoted.

The Week Ahead

April 27, 2015

After a generally quiet week just passed, the week ahead offers significantly more market movement potential.

Stronger Territory

March 31, 2015

Bond markets began the day in slightly stronger territory

Momentum

March 30, 2015

The first two days of this week stand a good chance to see the momentum driven by the trades that must be made before tomorrow night, regardless of the data.

Mortgage Apps Rise at Fastest Pace in 2 Months

March 25, 2015

Stoked by the lowest interest rates in several weeks the volume of applications for mortgages to both purchase and refinance homes increased by the largest percentages during the week ended March 20 than at any time since early January.

Unwinding

March 20, 2015

Considering all the build up to Wednesday’s FOMC events, Not 12 hours later and bonds were already in the process of unwinding those gains.

Mortgage Rates Slightly Higher to End Solid Week

March 13, 2015

Most lenders continue to quote a conventional 30yr fixed rate of 3.875% for top tier scenarios

Mixed Rates

March 13, 2015

Rates were mixed yesterday, but moved lower on average

Mortgage Rates

March 12, 2015

Rates continued lower at a steady pace for most lenders yesterday

Mortgage Rates

March 10, 2015

Mortgage rates managed to recover only some of Friday’s heavy losses. Most borrowers will see today’s improvement in the form of slightly lower closing costs for the same rates quoted on Friday.

March begins

March 2, 2015

The US rates markets are full of risk and opportunity.

Wild Ride

February 23, 2015

Mortgage rates have had something of a wild ride. At issue is the ongoing drama between Greece and its Eurozone creditors.

Quicken loans

February 19, 2015

Quicken Loans recently released its monthly Home Price Perception Index and Home Value Index. Appraiser’s home value estimates are only 1.43% more than homeowner’s opinions per the national composite, indicating that the home value estimate gap between appraisers and homeowners is tightening.

Bond Markets

February 17, 2015

The sideways grind in bond markets will continue until we see whether or not Greece ends up leaving the EU.

Mortgage Rates

February 13, 2015

European headlines left bond markets in limbo and weak economic data helped trading levels to improve. That, in turn, allowed most lenders to improve rate sheets by a small amount.

Castro

February 12, 2015

Julian Castro told the House Financial Services Committee on Wednesday that THE FHA historically high premiums limit affordability and certainly discourage some first time homebuyers from entering the housing market. HUD’s secretary said that FHA is in a strong position to take its “modest” recent step of reducing its premiums to correct this deficit.

National Housing Survey Results

February 9, 2015

Fannie Mae said today that its monthly National Housing Survey (NHS) portrayed increasing optimism as both employment and overall economic figures improved.

Mortgage Apps Surge

January 28, 2015

Mortgage applications have been riding high these past two weeks and still rising

Six Economists Reach Similar Conclusions on 2015 Housing Outlook

January 23, 2015

Optimism about the housing market has been a “misplaced notion” according to Wells Fargo Senior Economist Mark Vitner, But 2015, he says, could be the year.

Rates Continue to Stoke Refinancing Surge

January 21, 2015

Applications for mortgage refinancing scored a second straight week of solid growth

Mortgage Rates Bounce Slightly Higher off Long-Term Lows

January 19, 2015

Mortgage rates pulled back to slightly higher levels today as broader markets underwent a correction from relatively frenzied movement over the past few days.

Mortgage Rates Back to 3.5%

January 15, 2015

If you have a truly ideal credit profile and loan scenario, a few of the more aggressive lenders are quoting conforming, 30yr fixed mortgage rates at 3.5% today.

Mortgage Rates

January 13, 2015

Mortgage rates fell only modestly today, but it was enough for the best rate sheets since mid-May 2013. That’s a new 20 month low, on average.

Balanced Risks

January 12, 2015

Domestic bond markets became more balanced by the end of last week. Before that, they were certainly at more risk of weakness after bouncing at long-term low yields on Tuesday.

Mortgage rates rising

January 9, 2015

Today’s rates are only higher compared to the past 2 days. They’re still better than anything else seen before this week. The conforming 30yr fixed rate remains 3.75%, but with slightly fewer instances of 3.625%.

The New Year

January 5, 2015

This week promises to be nothing like the last 2. Market participation already began ramping back up on Friday and that should be exponentially true in the coming days.

Mortgage Rates Hold Ground at 18-Month Lows

December 12, 2014

Lenders that reissued improved rate sheets yesterday afternoon are generally in the same territory or slightly worse. Lenders that did not reprice yesterday are slightly better today. On average, rate sheets are close to ‘unchanged’ with 3.875% remaining the most prevalently quoted top tier, conforming, 30yr fixed rate. Lower rates are available, but require higher […]

Brian Leibowitz President of AFS

December 11, 2014

Mortgage Rates Returning to Recent Lows

December 10, 2014

Mortgage rates fell again bringing them very close to their lowest levels in more than a year and a half. US bond markets (including Treasuries and mortgage-backed-securities) continue taking cues from European bond markets where the benchmark 10yr yield just fell to a new record low.

MBS Day Ahead: Bond Markets Getting Back to Business, Just in Time for Bigger Data

December 3, 2014

The past two weeks have been the best and worst of times when it comes to bond markets and mortgage rates. While it is always nice to go on a run to periodic lows, it will probably always be frustrating to see them evaporate so quickly. On a daily basis during the latter half of […]

MBS Day Ahead: Econ Data Ramps up; How Well are MBS Doing?

November 25, 2014

Yesterday was a fairly solid day for bond markets. Although it suffered from decreased participation, there was still strong support at technical ceilings and a good responsiveness to economic events and headlines. At least that seemed to be the case based on the timing of the headlines combined with the ostensible market reaction.

Natural Disasters are now Measurable Default Risks

November 21, 2014

Growing numbers of severe weather events throughout the U.S. may be giving new meaning to “location, location, location” in the housing world. CoreLogic senior economist Kathryn Dobbyn writes in the company’s blog “housing Pulse” that the $8 billion in property damage caused by severe weather in the U.S. in 2013 is causing the housing industry […]

Big News for Existing Home Sales: 1st Annual Gain of 2014

November 20, 2014

If October sales of existing homes are an indication 2014 may come to a better conclusion than has been expected. The National Association of Realtors® (NAR) said today that sales of single-family homes, townhomes, condominiums, and co-ops in October were at their highest level since September 2013 and, for the first time in a year, […]

MBS Day Ahead: As FOMC Minutes Approach, What Else Merits Attention?

November 18, 2014

The inflation we’re looking for can’t be driven by rising prices at the producer level. The impact of producer price inflation would simply be thinner margins and lower growth, thus counter-intuitively casting a vote for lower rates.

Holding Overnight Gains Ahead of Week’s Final Auction

November 13, 2014

Bond markets were slightly weaker during Asian hours, but got their groove back during the European session. This wasn’t so much a factor of economic data (which was generally in line with expectations in Europe) as it was about volatility related corporate bond issuance. Lately, that’s been a net-negative for bond markets as firms frequently […]

MBS Day Ahead: Back Against The Wall Again for Bonds: Auction Today or Data Tomorrow?

November 13, 2014

we’re still holding under recent yield highs, and also under a relevant technical ceiling at 2.38. I don’t bring this up to suggest that those ceilings will continue to

Treasury Official Advocates Private Mortgage Market Development

November 12, 2014

Seven years after the financial crisis the private label securities (PLS) market is “barely clinging to life”, a Treasury official said on Wednesday. Michael Stegman, counselor to the Treasury secretary for housing finance said the earlier structural deficiencies in that market shattered the trust of market participants. Concrete reforms are clearly needed to rebuild confidence […]

MBS Day Ahead: Limited Calendar But Important 10yr Treasury Auction

November 12, 2014

As bond markets get back to business today, the afternoon’s 10yr Note auction will be important one way or another. Actually, that could be said with more certainty about the week’s auction cycle as a whole (which includes tomorrow’s 30yr bond auction), but clues could certainly come today.

Mortgage Rates Give Back Some of Friday’s Improvement

November 11, 2014

Mortgage rates were slightly higher today, erasing some of the gains seen on Friday, but remaining well within the recent range. The most prevalently-quoted conforming 30yr fixed rate for top tier borrowers had clearly been 4.0% on Friday, but today’s weakness makes 4.125% nearly as common. That said, the shift isn’t due to the size […]

Latest Fannie Mae Housing Survey Says: Good Time to Sell

November 10, 2014

Consumer attitudes toward housing and the economy in general continued the slow improvement that has become the norm according to results from the October National Housing Survey. Fannie Mae which sponsors the survey said the share of respondent households voicing confidence that their personal financial situation would improve over the next 12 months climbed to […]

MBS Week Ahead: Limited Data; Important Auctions; Banks Closed Tuesday

November 10, 2014

With bonds closed on Tuesday for Veterans Day, market participation should be lighter than normal today. That said, it won’t be as light as it would be on some holiday weeks considering that futures remain open. The implication is that we’ll have to wait until Wednesday to determine whether the “high fly ball” hit on […]

MBS Day Ahead: Bond Markets Ready for Something New After Today’s Jobs Report

November 7, 2014

From the moment yields began drifting higher following the mid-October rally, absolutely nothing new has happened for bond markets. Trading levels have gotten progressively more negative in frustratingly non-threatening baby steps. The frustration sets in when you see those baby steps added up to a full-grown sell-off of 40bps in 10yr yields, or about a […]

Cash Sales Decline: Now ‘only’ 1 in 3 Homes; Metro Price Increases Moderate

November 6, 2014

Institutional investor participation in the single family residential market fell another notch in the third quarter of 2014. RealtyTrac said today that only 4.3 percent of residential sales in the most recently completed quarter went to those investors, defined as those who purchase 10 or more properties in a calendar year. This group was responsible […]

MBS Day Ahead: The Truth Behind Interest Rates’ Love Triangle

November 6, 2014

Whatever the case, this falling European barometer has been a boon to US rates this year. Incidentally, it was a major boon in 2011 and 2012 as well, but it sticks out more now as it stands in starker contrast to our current average piece of economic data, not to mention the expected direction of […]

MBS RECAP: Bond Markets Grind to a Halt Ahead of ECB

November 5, 2014

The resurgence enjoyed by refinancing over the last few weeks subsided a bit in the face of rising interest rates during the week ended October 31. The Mortgage Bankers Association (MBA) reported that its Market Composite Index, a measure of mortgage loan application volume fell by 2.6 percent on a seasonally adjusted basis from the […]

Mortgage Rates Steady Ahead of Potential Volatility

November 4, 2014

Mortgage rates recovered somewhat after moving to the highest levels in nearly a month yesterday. That sounds more dramatic than it is considering the exceptionally slow and steady move toward higher rates from mid-October. Ironically any day during this seemingly pervasive move higher would still qualify as the best day of the year had it […]

Mortgage Rates Approaching 1 Month Highs

November 4, 2014

Mortgage rates continued higher today, edging up to their worst levels in nearly a month. The most prevalently-quoted conforming 30yr fixed rate for top tier borrowers is currently a toss-up between 4.0 and 4.125% depending on the lender. Whereas it had been compellingly affordable to pay extra upfront cost to move below 4.0%, those so-called […]

Big Week for Markets: Fed-Speak, ECB, NFP

November 3, 2014

After last week’s anticlimactic reaction to the end of QE3, the current week offers up several places to look for the inspiration owed to bond markets. Some of those places include historically important economic data, so a caveat is in order that economic data has been largely ignored for much of 2014. Another caveat to […]

Mortgage Rates Recover Slightly; Holding Near 4 Percent

October 31, 2014

Mortgage rates pulled back to hold near 4 percent after rising to the highest levels in 3 weeks. After the Fed announcement, the most common rate quotes were at risk of edging up to 4.125% for top tier borrowers. In general, rates are nearly back in line with Tuesday’s.

Mortgage Rates at 3-Week Highs After Fed Ends QE

October 29, 2014

Mortgage rates rose to the highest level in 3 weeks after today’s Fed Announcement. The move was a two-part process with initial rate sheets being weaker in the morning and mid-day reprices (lenders raising rates) following the Fed. The pace of the movement was moderate, leaving 4.0% intact as the most prevalently-quoted conforming 30yr fixed […]

Mortgage Apps: Still Much More Refi Demand Than 2 Weeks Ago

October 29, 2014

Mortgage application numbers during the week ended October 24 backed off a bit from the numbers posted during the week ended October 17 but were still elevated compared to other recent weeks. The Mortgage Bankers Association’s (MBA’s) Weekly Mortgage Applications Survey for last week reported almost entirely declining numbers but for context we will include […]

MBS MID-DAY: Bond Markets Slightly Weaker; Still Lacking Inspiration Ahead of Fed

October 28, 2014

Treasuries and MBS have seen modest volatility within a modest range this morning. The stage was set with overnight weakness resulting in weaker opening levels. At 8am, 10yr yields were up around 3bps and Fannie 3.5 MBS were down about an eighth of a point.

Mortgage Rates Holding Near 4 Percent

October 28, 2014

Mortgage rates were almost perfectly unchanged over the weekend. Most lenders are still right in line with Friday’s most prevalently-quoted conforming 30yr fixed rate of 4.0% for top tier borrowers. That said, most of those rate sheets also still have reasonable costs for borrowers interested in paying more upfront for a lower rate. For instance, […]

MBS MID-DAY: Back Near Unchanged Levels After Morning Volatility

October 22, 2014

As you can see, we definitely had some bond-market-specific weakness this morning. Unfortunately for the sake of accurate analysis, the weakness occurred in close proximity to the Consumer Price Index (CPI) data. This logically resulted in media outlets pinning the weakness on CPI, but the two were completely unrelated. The factual culprit for this morning’s […]

Best Week of Year for Refis; MBA sees Purchase Loan gains Next Year

October 22, 2014

Falling interest rate precipitated a major refinancing rally during the week ended October 17 even though Columbus Day shortened the business weeks in some locations. The Mortgage Bankers Association’s (MBA’s) Refinance Index jumped 23 percent compared to the previous week, the largest increase for the index this year, far surpassing an 11 percent gain in […]

Mortgage Rates Sideways to Slightly Higher

October 21, 2014

Mortgage rates continue to bide their time, holding just under 4 percent on average. Some borrowers might see their quote move up .125% from yesterday, but others will be quoted the same rate with slightly higher closing costs. A few lenders didn’t move at all, but they’re the exception. Overall, rates were slightly weaker, resulting […]

MBS Day Ahead: Will Bonds Continue to Defy Stocks?

October 21, 2014

Will bond markets be able to hold their ground if equities make more meaningful gains today? I don’t know but they did yesterday, and it was the best such performance since mid September. In fact S&P futures were up over 20 points by 5pm Treasuries had managed to make meager gains over the same time […]

MBS RECAP: Bond Markets Refreshingly Resilient Against Stock Market Gains

October 20, 2014

Treasuries and MBS didn’t end up making much progress today. Fannie 3.5s are only 2 ticks higher than they were at the close on Friday and 10yr yields aren’t even 1bp lower. But bond markets were still arguably successful. Reason being: stocks advanced by nearly 20 points in the S&P. Why is this significant? Because […]

MBS Day Ahead: Sometimes You Have to Wait Before Really Finding Out

October 17, 2014

It’s tempting to draw conclusions based on what seem like clear signals in markets. Clearly stocks and bonds have been in tune with each other and stocks were clearly doing something different to start the week (clear enough that it was the topic of the morning commentary)

Relaxed QRM Rules Expected Next Week

October 16, 2014

Federal regulators may finally produce the long anticipated market standards for Qualified Residential Mortgages (QRM), perhaps even as early as next week. The new rules are designed to ensure the quality of mortgages that are pooled and packaged into securities for sale to investors on the secondary market. Insiders expect that the final regulations will […]

Wildest Day in Years for Mortgage Rates

October 16, 2014

Mortgage rates went on a truly epic ride today. From the opening bell to the closing bell, the mortgage-backed-securities (MBS) that underlie mortgage rates covered more ground than any other day since at least mid 2011. Direct comparison is an imperfect science in this case because MBS are stratified in different coupons. The stuff that’s […]

MBS MID-DAY: One of the Craziest Days for Bond Markets, Ever

October 15, 2014

If you’re just tuning in, bond markets are having a career day with 10yr yields currently operating near 2.06 after trading in the 2.2’s yesterday and 2.4’s last week. Fannie 3.0s (those are important again now) are up a point and 3.5s are up 20 ticks. Best-ex rates are easily into the high 3’s. Wow… […]

MBS Week Ahead: Strongest Bond Market in Over a Year Tuned in to Stocks

October 14, 2014

The tendency for bond yields to move in concert with stock prices had been spottier before September’s FOMC Announcement, but has been over since then. At the beginning of October, we discussed the “new quarter” tradeflows out of stocks and into bonds as one of the key components of a strong rally in Treasuries and […]

Lender Pricing Pulls Back Ahead of 3 Day Weekend

October 13, 2014

Mortgage backed securities and treasuries opened in opposite directions this morning. MBS opened a few ticks worse than yesterday, while the benchmark 10 year treasury note opened at 2.30, down from yesterday’s close of 2.32. The early morning weakness with MBS resulted in lenders worsening rate sheets.

MBS Day Ahead: Busier Calendar of Events, but Nothing Compared to Technical Possibilities

October 9, 2014

Fannie and Freddie 30yr Fixed MBS “roll” tonight, meaning October coupons will no longer be traded and November coupons will take over as the representative for “MBS Prices.” When that switch it flipped it will look like prices fell about 10 ticks, but that’s just about how much lower in price November coupons have always […]

MBS MID-DAY: Moderate Pull Back Ahead of FOMC

October 8, 2014

Treasuries had a fairly uneventful overnight session–this time paying much more attention to the movement in European bond markets (not the case yesterday). It’s somewhat significant, perhaps, that both US and German 10yr yields just barely failed to break late August lows. This is a closely-watched technical resistance event (i.e. failure to break to new […]

MBS Day Ahead: Still Slow From a Calendar Standpoint; Still Waiting on Techs and Stocks

October 7, 2014

After an exceptionally busy week last week and with very little on the calendar of scheduled events, this is an understandably slow week for bond markets. As far as market movers are concerned, all we have on the schedule are the Treasury auctions, starting with today’s 3yr, and Wednesday’s FOMC Minutes.

More Consent Orders Against Lenders; Columbus Day Primer; Upcoming Events

October 6, 2014

Marriott was fined $600,000 by the U.S. Federal Communications Commission for blocking hotel customers from connecting to the internet on personal Wi-Fi networks in order to force them to pay for the hotel’s network. (Marriott employees blocked mobile “hotspots” at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee, while at the same time […]

MBS Day Ahead: Is There Such Thing as Too Much of a Rally?

October 2, 2014

10yr yields dropped a precipitous 10bps yesterday. While this isn’t much compared to some of the more volatile days of the past 6 years, it’s one of the most abrupt moves lower in the past few years. It’s strength is all the more impressive in that it comes after nearly two weeks of moderate improvements. […]

MBS Day Ahead: Rates Head For Conflict Resolution As Data Heats Up

October 1, 2014

Today is the first day of a new month and new quarter, and Octobers have historically been active for bond markets. That leaves us to wonder whether the activity will push back against the mostly negative September. There are excellent cases to be made for avoiding any major push higher in rates until the struggling […]

Mortgage Rates Higher to End September

September 30, 2014

Mortgage rates were slightly higher today leaving September s one of only 3 months this year with noticeable upward movement. Things could have been worse had it not been for the steady improvements seen during the second half of the month. Today was an exception to that recent trend, but it’s tempered by the fact […]

Mortgage Rates Near 3-Week Lows

September 30, 2014

Mortgage rates fell at a healthy pace today, bringing them to the lowest levels since September 9th. Gains in bond markets help rates move lower and bond markets were stronger right from the outset today on a combination of factors. Determining the most prevalently-quoted conforming 30yr fixed rate for top tier borrowers is more of […]

MBS Day Ahead: Busy Week Likely The Stage For The Next Big Move

September 29, 2014

After September’s big move higher in rates cooled off, we’ve been left in limbo, to some extent. There certainly hasn’t been a painful continuation to higher rates, but we’ve had some trouble breaking much lower than the initial rally early last week. In technical terms, 10yr yields rejected a break above the long term downtrend, […]

MBS Day Ahead: Will GDP Buck Trend of Inconsequential Econ Data?

September 26, 2014

Markets are very likely going to go where they’re going to go today regardless of the GDP reading. But if that reading supports those trading goals, it will almost certainly be used as cover to facilitate the movement.

MBS Day Ahead: Bond Markets Teetering on Technical Ledge; Could go Either Way

September 25, 2014

Things are finally getting interesting again for bond markets after almost all of 2014 has been relatively boring. Unfortunately, what’s interesting in terms of market-watching isn’t necessarily good for rates. Today’s chart shows this stark reality. Specifically in the two technical studies under the main chart, you can see just how different things are looking […]

Mortgage Rates Lowest in More Than a Week

September 23, 2014

Mortgage rates continued lower at a moderate pace for a second straight day, raising hopes that markets might be pushing back against the existing September trend. That trend has seen rates move higher at the fastest pace of the year, completely undoing the solid improvements in August. All that having been said, the entirety of […]

MBS Week Ahead: Housing Data, Treasury Auctions, Fed Speakers, and GDP

September 22, 2014

This will be a relatively busy week for economic data and scheduled events. No single item stands out as an epic potential market mover, but the team effort looks solid. At stake is the ongoing post-FOMC question: to bounce, or not to bounce. Trading levels continue to operate near the levels seen before last week’s […]

MBS MID-DAY: Back to Pre-FOMC Levels; Here’s Why

September 19, 2014

Both MBS and Treasuries are back in line with trading levels from the close of business on Tuesday. Today’s gains have been moderate during the domestic session, but border on extreme if we cound the overnight session. For example, 10yr yields were as high as 2.655 and are now down into the 2.5’s. That’s not […]

Mortgage Rates Edge Up to 4-Month Highs

September 18, 2014

Mortgage rates only moved slightly higher today for most lenders. Some lenders were unchanged from yesterday, but on average, rates inched up to match their highest levels since May 1st. There was no significant underlying market movement, which is interesting considering yesterday’s Fed Announcement was expected to do more to stir up the action. Instead, […]

Mortgage Applications Rebound, Offsets Labor Day Losses

September 17, 2014

The week ended September 12 saw the losses in application volume which occurred during the previous week which was shortened by the Labor Day holiday mostly reversed. Mortgage application volume increased in most categories by nearly the same percentages as they had fallen during the week ended September 5.

MBS MID-DAY: Holding Ground After Modest Gains

September 15, 2014

Treasuries began the overnight session moving to even higher yields than those seen on Friday afternoon. Just after 4:30am, German Bunds put in a strong bounce on their high yield ceiling from Friday and Treasuries reluctantly followed. 10yr yields made it back to ‘unchanged’ territory by 8am.

MBS Day Ahead: Bonds at Risk of Confirming Death of Positive 2014 Trend

September 15, 2014

As Treasury yields and mortgage rates spiraled rapidly higher over the past two weeks, 2014’s steady trend toward lower rates quickly strayed into vulnerable territory. Specifically, 10yr yields lost more ground, more quickly than at any other time this year. It’s not just about the rapidity of the move, but also the distance from the […]

Mortgage Rates Essentially Unchanged at 1-Month Highs

September 11, 2014

Mortgage rates were essentially unchanged today. Most lenders were microscopically lower in terms of closing costs, though several went the other direction. On average, the movement barely registered, keeping rates at their highest levels since August 4th. This also keeps the most prevalently quoted conforming 30yr fixed rate in limbo between 4.125 and 4.25% for […]

MBS Day Ahead: Negative Trend Intact for Bond Markets, but for how Long?

September 9, 2014

September has been decidedly negative for bond markets so far, and largely without any regard for economic data and events. Given that ‘month-end’ was only a day after the European Central Bank announcement, it’s tough to say whether we’re witnessing weakness with a purpose, or simple shuffling of tradeflows heading into a new month.

MBS Week Ahead: Fewer Scheduled Events for Bond Markets, but Plenty at Stake

September 8, 2014

Compared to last week, we have fewer potential market movers on the calendar in the week ahead. But that doesn’t make it any less important. If anything, it has the potential to be much more important than last week, because yields have yet to definitively break above the important inflection point at 2.46.

MBS Day Ahead: Strong Jobs Report Could Have Serious Consequences

September 5, 2014

Bond markets are vulnerable right now–perhaps more vulnerable than they’ve been for several months. During that time, they’ve taken on an air of near-invincibility as the European Central Bank (ECB) was widely expected to be working toward a quantitative easing package.

MBS MID-DAY: Bond Markets to European Central Bank: “That’s it?

September 4, 2014

It’s been a busy morning for bond markets, with lots of economic data as well as the European Central Bank Announcement and Press Conference. Several geopolitical headlines also vied for attention during the busiest moments. Things are calming down now though bond markets remain near their weakest levels of the day. Once again, Treasuries have […]

Mortgage Rates Just Slightly Higher; Volatility Ahead

September 3, 2014

Mortgage rates started the day heading higher after overnight news of a potential ceasefire in Ukraine caused investors to quickly sell safe-haven assets. The mortgage-backed-securities (MBS) that dictate mortgage rates fall into this ‘safe-haven’ category along with US Treasuries. When investors are selling MBS, prices move lower and rates move higher.

FHFA & FHLB System Square Off; Moody’s to Change Rating Methodology?

September 3, 2014

September… ugh. Most latitudes in the U.S. are losing 2-3 minutes a day of daylight; in Anchorage they lose 5-6 minutes a day, Key West only about 1 minute. I mention this because we can’t change seasonal factors, and unless a lender has grabbed market share from other lenders, most areas of the nation tend […]

New Credit Score Model Would be Great for Housing! Too Bad it Won’t be Used

September 2, 2014

FICO, the company that develops proprietary scoring models for credit bureaus and lenders, announced August 7 that a new model (FICO Score 9) would be released this fall. FICO’s press release caught buyers’, Realtors’, and lenders’ attention, as the new model was touted as significantly more “borrower friendly”. Paid collections would no longer impact credit […]

Mortgage Rates Fall For Sixth Straight Day

August 28, 2014

Mortgage rates fell modestly for an impressive sixth straight day today. Yet again, we’re seeing little attention paid to the events in the US that NORMALLY influence interest rates. Case in point, stronger economic data typically pushes rates higher, and three out of three economic reports were stronger than expected today. The dark horse market […]

MBS Day Ahead: Busiest Day of Economic Data, but Dark Horses in Europe

August 28, 2014

Today is the busiest day of the week for domestic economic data and Treasury Auctions. The 8:30 time slot brings Jobless Claims and the 2nd revision of 2nd quarter GDP. At 10am, there’s Pending Home Sales and the week’s last Treasury auction hits at 1pm.

Mortgage Rates Closing in on 2014 Lows

August 27, 2014

Mortgage rates fell by an almost imperceptible amount today. Some lenders were actually unchanged or slightly higher. The actual NOTE rates quoted today would be identical to yesterday, with the only differences being seen in the form of modestly lower closing costs. This means that 4.125% stays intact as the most prevalently-quoted conforming 30yr fixed […]

MBS Day Ahead: A Data-Free Day to Consider Thursday’s GDP Release

August 27, 2014

When Q1 GDP first came out weaker than expected and was subsequently revised all the way to -2.9%, it put a damper on many assessments of US economic health. While it may or may not be a mistake to have a downbeat view of the economy, it was probably a mistake to let the weird […]

How Long Will Low, Flat Mortgage Rates Last?

August 26, 2014

So many questions have been raised by the surprising state of affairs in the world of mortgage rates this year. Why did rates move in the opposite direction from broad-based expectations to start the year? Why have rates continued to hold their low ground in such a stable way? Why have rates been able to […]

Housing Recovery Back on Track

August 26, 2014

Key reports indicate that the housing recovery is back on track, while inflation remains tame. The recent stall in recovery may be coming to an end. Housing starts and Building Permits are on the rise. Tame consumer inflation means good news for Bonds. All in all, now is a great time to consider a home […]

MBS Day Ahead: One of the Biggest Potential Durable Goods Reports Ever (And it Won’t Matter)

August 26, 2014

A cute little phenomenon got a fair amount of buzz on an otherwise slow news day yesterday. It has to do with today’s Durable Goods data and the fact that it could be insanely strong. In fact, some economists are calling for a month-over-month improvement of over 30%, which would easily be an all-time record. […]

Mortgage Rates Slightly Lower Despite Stronger Economic Data

August 21, 2014

Mortgage rates ended a 3-day losing streak, moving modestly lower today. This wasn’t the case in the morning, but several lenders released positively-revised rate sheets in the afternoon. As such, some lenders still have slightly higher rates compared to yesterday, but the average is slightly lower. This leaves 4.125% intact as the most prevalently-quoted conforming […]

MBS Day Ahead: Busiest Day of Economic Data This Week

August 21, 2014

Today’s calendar of scheduled events is the busiest of the week with Jobless Claims at 8:30am followed by Philly Fed and Existing Home Sales at 10am. All the reports are important as Jobless Claims covers the week that coincides with the data collection for Nonfarm Payrolls. This doesn’t guarantee a big reaction, but increases the […]

MBS MID-DAY: Back Into Positive Territory After Opening Weaker

August 20, 2014

MBS are outperforming Treasuries today and have been flirting with positive territory heading into the noon hour. Treasuries are still about 1bp higher than yesterday.

Mortgage Rates Higher, But Still Among Year’s Best

August 19, 2014

After hitting the lowest levels in over 2 months on Friday, mortgage rates bounced almost all the way back to Thursday’s levels. That’s somewhat significant as the drop between Thursday and Friday was one of the strongest moves lower in months.

MBS Day Ahead: So Far So Good, And That’s All We Really Know

August 15, 2014

There are plenty of frustrating times in financial markets where a trend is only as good as it’s most recent trading day. This is the old: “the trend is your friend until it’s not your friend any more” routine.

Mortgage Applications Trickle Lower Despite Unchanged Rates

August 13, 2014

Applications volume was lower during the week ended August 8 across all of the measures employed by the Mortgage Bankers Association (MBA). MBA’s Market Composite Index decreased 2.7 percent on a seasonally adjusted basis from a week earlier and it was down 3 percent on an unadjusted basis.

Mortgage Rates Hold Ground at Recent Lows

August 11, 2014

While mortgage rates didn’t enjoy as strong of a move lower as US Treasuries last week, they were nonetheless right in line with their best levels since late June. Any time bond markets make an abrupt move to highs or lows, there’s a risk that the subsequent move will be a correction back in the […]

MBS Week Ahead: Time for Short Term Correction or Longer Term Bounce?

August 11, 2014

Even during the strongest moves lower for rates, we’ll still see periodic weakness within the trend. In other words, if rates are falling and generally staying inside a trend channel (downwardly-sloped railroad tracks that enclose rate movement on a chart), corrections to the upper end of the channels are normal.

MBS Day Ahead: Limited Economic Data to Motivate Trade, but Massive Reasons Elsewhere

August 8, 2014

It has been the case for months that the European economy and monetary policy stance are big net-positives for US bond markets. I talk about it incessantly enough anyway. This is the first “big game” and yesterday it finally coaxed 10yr Treasuries out of the uptrend (in red below) that had been intact since late […]

Mortgage Rates Unchanged to Slightly Lower

August 7, 2014

The rate outlook can be either encouraging or disheartening depending on how you choose to view it. On the one hand, these rates are still near the lowest levels of 2014. Additionally, rates have shown a remarkable ability to stay near those lows for a longer stretch of time than normal. Finally, to whatever extent […]

Mortgage Rates Just Barely Higher; Some Afternoon Improvements

August 6, 2014

Global stock markets came under strong selling pressure as headlines emerged suggesting Russia could soon invade Ukraine. More often than not, when markets respond to such geopolitical headlines, one of the key ingredients is increased demand for safe-haven assets such as US Treasuries and other ‘bonds.’ The mortgage-backed-securities (MBS) that dictate mortgage rates are almost […]

MBS RECAP: Weakness After Stronger Data Offset by ‘Invasion’ Headlines

August 5, 2014

It was a tale of two headlines today; one of the scheduled; the other, a surprise. The schedule economic data at 10am showed ISM’s Non-Manufacturing Index higher than expected at the best levels since 2005. While this is something that would have happened on any moderately-sized improvement, it didn’t help bond markets. In addition, Factory […]

Mortgage Rates Perfectly Flat over the Weekend

August 4, 2014

Mortgage rates held their ground over the weekend, with most lenders offering the exact same rates and costs as Friday afternoon. There were no significant events or headlines that had any major effects on the bond markets that underlie mortgages. For top tier scenarios, the most prevalently-quoted conforming 30yr fixed rate remains fairly well split […]

MBS Week Ahead: After Volatile Week, Bond Markets Caught in a Run-Down

August 4, 2014

Bond markets did their best last week. After hitting the year’s best levels in late May, nothing else has really happened, or even stood the chance to happen. Last week’s events marked the first decent opportunity to break the rut.

MBS RECAP: Massive Sell-Off in Stocks but no Rally in Bonds

August 1, 2014

It’s not often you’ll see the S&P down over 30 points with less than 1bp of day-over-day movement in 10yr yields, but that’s where we’re heading out today. Things might have been worse for Treasuries, however, had it not been for the stock selling, which prompted some asset reallocation ahead of month-end (sell stocks/buy bonds).

Mortgage Rates Barely Higher, More Volatility Ahead

July 31, 2014

Mortgage rates started the day in fairly rough shape with most lenders offering noticeably higher rates vs yesterday. As stock markets slid into the afternoon, the bond markets that underlie mortgage rates improved. Most lenders put out better rate sheets at some point in the day. In most cases this brought them fairly close to […]

MBS Day Ahead: What Yesterday’s GDP Shocker Means for Rates

July 31, 2014

With GDP living up to it’s surprising potential, things have quickly gotten more serious for domestic bond markets. Before yesterday, econo-bears could hold out some hope that Q2 GDP might have reiterated the gloominess of Q1 GDP in some way. They could hold out hope that Q1 weakness was about more than just the list […]

Slow, Mixed Week for Mortgage Applications

July 30, 2014

It was a mixed and largely directionless week for mortgage applications as the volume of applications for home purchases inched up fractionally while applications for refinancing fell. The Mortgage Bankers Association said its Market Composite Index, a measure of loan application volume was down slightly during the week ended July 25 on both a seasonally […]

MBS RECAP: Some Weakness and a Few Reprices, but Mostly Holding Ground

July 28, 2014

More due to timing and coincidence than anything, we got a few negative reprices this afternoon. Shortly thereafter, prices moved right back mid-point of today’s trading range and never left. That said, things were a bit weaker in Treasuries.

MBS Day Ahead: Tons of Potential Volatility with GDP, Fed Announcement, and Jobs Report

July 28, 2014

Finally we come to the week we’ve been eyeing for nearly a month as a candidate for major changes. It’s fitting that 10yr yields ended the previous week right at 2.47% which–above all others–is the poster-child for inflection points for bond markets. In fact, the last time yields were sustainably below 2.47% was more than […]

MBS RECAP: Bond Markets Hold on to Recent Gains Ahead of Big Week

July 25, 2014

Next week promises to be big. Even if the events don’t ‘agree’ with each other enough to spark a major rally or sell-off, the potential is there. Due to last week’s geopolitical headlines, bond markets arguably made it down to the lower end of the rate range a bit early to set up their chairs […]

MBS Day Ahead: Too Much Too Soon for Bond Market Rally Ahead of Big Week?

July 25, 2014

Next week is a big one. ADP/GDP/FOMC all hit on Wednesday. Month-End is on Thursday, and NFP is on Friday. There are other top-tier reports as well, and a Treasury auction cycle, but the named peril is more than enough evidence for the big potential.

MBS Day Ahead: Rates Continue Hovering on the Edge of a Breakout

July 24, 2014

The past 5 days have simply seen rates grind around recent lows. Things have been a bit brighter in Treasuries compared to MBS, but in general, both have traded increasingly narrow ranges near the best levels of the year (again, that’s more true for Treasuries, but not entirely untrue for MBS).

Finally an “Up” Week for Mortgage Applications

July 23, 2014

The Market Composite Index, a measure of loan application volume had its first positive week since June 6 last week, increasing 2.4 percent on a seasonally adjusted basis from the previous week. The Mortgage Bankers Association (MBA) said its unadjusted volume index also finished the week ended July 18 with an increase, up 3 percent. […]

Housing Fundamentals Move In Right Direction, Price Gains Continue

July 22, 2014

With the increasingly real conversation about raising rates at the Fed, inflation is rapidly becoming a market mover again after taking at least 4 years off. Today’s reaction to CPI is one of the biggest we’ve seen to inflation data recently. Although the headline numbers were in line with expectations, Core CPI (which factors out […]

MBS Day Ahead: More on The Calendar Today, but Will it Matter?

July 22, 2014

2014 has been an interesting year for bond markets. In fact, in terms of its ability to continually confound market expectations, it’s been one of the most interesting years of the recovery. This is not because there’s been any large and unexpected movement. Rather, it’s because there’s been an absolute LACK of big, unexpected movements!

Home Value Forecasts; Non-QM and Non-Performing Loan Price Action; CMLA on FHFA OIG Report

July 21, 2014

In many ways, the current week will serve as a prelude to the following week, which is exceptionally packed with big-ticket events. From Wednesday to Friday (next week), we’ll get the first look at Q2 GDP, ADP Employment, the last Treasury auction of the week, an FOMC Announcement, ‘Month-End’ (which can increase bond market activity/volatility), […]

MBS Day Ahead: Basically Just Waiting on Geopolitical Risk; Dangerous Game for Bonds

July 18, 2014

Although economic data had some small role to play in yesterday’s strong bond market rally, the day was really all about geopolitical risk. If we’ve learned anything about geopolitical risk as a market mover, it’s to not rely on it as a long term guidance giver.

MBS MID-DAY: Bond Markets Romp to Best Levels Amid Risk-Off Trade

July 17, 2014

Despite a much stronger-than-expected Philly Fed report, bond markets didn’t lose much ground after 10am. Earlier in the morning, weaker Housing Starts data helped strengthen an overnight rally. The original strength is thought to be a factor of increasing geopolitical tensions between Russia and Ukraine. That said, history suggests remaining skeptical of market movers that […]

Mortgage Rates Unchanged to Slightly Higher

July 17, 2014

Mortgage rates were just barely higher today on average. The movement was so small that several lenders were actually unchanged or slightly better. This is consistent with an ongoing trend of incredibly small day-to-day changes in rates. The range has been narrow enough to keep the most prevalently quoted top-tier rate between 4.125% and 4.25% […]

Mortgage Application Volume back to pre-Holiday Levels

July 16, 2014

The Mortgage Bankers Association’s (MBA) Market Composite Index notched another decline during the week ended July 11, the fifth straight down week for the index which measures the volume of mortgage applications. The index decreased 3.6 percent on a seasonally adjusted basis from the week ended July 4. The prior week’s numbers included an adjustment […]

MBS Day Ahead: Yellen Testimony, Retail Sales, and Housing Data

July 14, 2014

Last week was a dud in terms of scheduled events. This week isn’t the polar opposite, but it’s much more active. Monday and Friday are the only days without at least a few interesting items on tap.

MBS Day Ahead: Empty Calendar Leaves Focus on Europe and Earnings

July 11, 2014

There are no significant economic reports on the calendar today, and the week’s auction cycle is already wrapped up. While there are two Fed speakers, the speeches are unlikely to be major market movers.

MBS RECAP: Strong Start Thanks to Europe, Gradual Losses Leave Modest Gains Intact

July 10, 2014

Eurozone contagion made an appearance today in much the same way it did for nearly all of 2010-2012. This time around, it’s Portugal’s Banco Espirito Santo causing problems for Portugal’s sovereign borrowing costs. This in turn drove flights-to-safety in more stable EU countries. The posterchild for such countries is Germany, and as goes Germany’s bond […]

MBS Day Ahead: Jobless Claims, Last Auction, and More NFP Reflections

July 10, 2014

Today brings the only true “economic data” of the week in the form of Jobless Claims at 8:30am. Markets aren’t necessarily chomping at the bit to react to this release, but it could have some effect. The last of the week’s Treasury auctions wraps up at 1pm and any post-auction-supply rally possibilities will be evident […]

MBS Day Ahead: Treasury Auction, FOMC Minutes, and Special NFP Reflections

July 9, 2014

There’s not much to say about bond markets that continue trading in a range (marked by 2.66% 10yr yields on the high side and something less clearly delineated underfoot. It could be as low as 2.40, but key levels at 2.57 and 2.47 would need to be broken first. We’re right at the 2.57 mark […]

MBS RECAP: Participation Returns and Votes in Favor of Range

July 8, 2014

Market participation was pathetic yesterday–the lightest session since at least April. Today was merely “average” but that’s a huge improvement over yesterday.

MBS Day Ahead: Surprisingly Enough, Still Fighting to Hold the Range

July 8, 2014

Today’s focus is on the range that tops out at 2.66% in the case of 10yr yields. This roughly equates to 102-00 in terms of Fannie 3.5s, but naturally that will no longer be the case come Thursday night when MBS ‘roll’ (one of the several reasons to stay focused on Treasuries when considering broader […]

MBS Day Ahead: Light Economic Calendar, FOMC Minutes, and Potential Change in Trend

July 7, 2014

On the whole, 2014 has certainly seen a narrow range in rates, but within that broader range, we’ve still been able to witness distinct trends. For instance, rates were sideways to slightly higher in February and March, then moved convincingly lower in April and May.

MBS Day Ahead: Epically Condensed NFP Day

July 3, 2014

There is so much on tap today per hour of open market time. It may be some sort of record. Not on the economic calendar below, but still potentially significant is the European Central Bank Announcement at 7:45am. Then Draghi returns to complicate the post-NFP trading with a press conference that begins at 8:30am (same […]

MBS MID-DAY: Almost Perfectly Flat After ADP-Inspired Sell-Off

July 2, 2014

Referring to the morning’s weakness as exclusively “ADP-inspired” is a bit of an overstatement. Bond markets have generally been trading in the direction of broad-scale “quarter-end” trading, and the subsequent correction of quarter-end trading yesterday and today.

Little Change in Mortgage Apps Despite Lower Rates

July 2, 2014

Even as mortgage interest rates retreated across the board last week Mortgage application volume remained essentially unchanged. The Mortgage Bankers Association (MBA) reports that applications for mortgages during the week ended June 27 were down 0.2 percent on a seasonally adjusted basis according to its Market Composite Index and down 1 percent on a non-seasonally […]

Mortgage Rates Heading Higher Into New Month

July 1, 2014

Mortgage rates finally made a move higher today as financial markets transitioned from 2nd to 3rd quarter trading strategies. Most frequently, we see things like economic data and news headlines pushing trading levels in bond markets in either direction. When that effects mortgage-backed-securities (MBS), mortgage rates end up moving as a result. Today was an […]

MBS Day Ahead: Rates Remain on Edge Ahead of NFP

July 1, 2014

With the end of the month/quarter out of the way, bond markets may now have more capacity to tune in to the week’s economic data. But when quarter-end has been biased in one direction, the beginning of the new quarter can sometimes act as a bit of a correction. This possibility is reinforced by the […]

MBS RECAP: Bond Markets Navigate Quarter-End Without Too Much Drama

June 30, 2014

Considering that today’s trading range wasn’t meaningfully wider than Friday’s AND that closing prices look like they’ll fall inside Friday’s range, today has turned out to be a relatively drama-free month-end/quarter-end trading session. That didn’t look like it would be the case as Fannie 3.5s made a dash from the highs to the lows at […]

MBS Week Ahead: Action-Packed 3.5 Day Week Ends with NFP

June 30, 2014

Pound for pound, this is one of the busiest weeks of the year. There are relevant economic reports every day as well as Fed speakers and the last trading day of Q2. Wrapping it all up (sort of) is June Nonfarm Payrolls. This time, however, it arrives on Thursday due to the Independence Day holiday, […]

MBS Day Ahead: Probably a Quiet Friday, but With Potential Quarter-End Trading Considerations

June 27, 2014

The actual end of the quarter isn’t until Monday, but it’s not uncommon for market participants to get end-of-quarter (or end-of-month for that matter) trading needs out of the way earlier if opportunities present themselves.

Banks’ Efforts to Turn Profits are Risky -OCC

June 26, 2014

The Office of Comptroller of the Currency’s (OCC) National Risk Committee (NRC) pronounced the financial position of federally chartered institutions “improved” last year in its Semiannual Risk Perspective issued on Wednesday. The federal banking system set a new record level of net income that was only $5 billion or 5 percent higher than the previous […]

MBS Day Ahead: Next Move for Bonds Already Obvious, Maybe Too Obvious

June 26, 2014

If rates improve, that would make perfect sense because technicals obviously suggested it. If rates rise, well then the technical picture was TOO obvious.

Lackluster Week for Mortgage Applications

June 25, 2014

Mortgage Applications slowed for the second straight time last week but the loss was modest compared to the 9.2 percent plunge during the week that preceded it. The Mortgage Bankers Association’s (MBA) Mortgage Applications Survey found that applications for mortgages during the week ended June 20 were 1 percent lower on a seasonally adjusted basis […]

Mortgage Rates Flat to Slightly Lower

June 24, 2014

Mortgage rates were slightly lower today, but did not move much from yesterday’s latest levels. Some lenders are even in slightly higher territory. Underlying market movement was volatile, but only in the context of a fairly narrow range. Geopolitical concerns, stock market weakness, and trading considerations relating to today’s Treasury auction helped bond markets improve […]

MBS Day Ahead: Action Packed Day Includes Home Sales and Prices

June 24, 2014

While tomorrow arguably hosts the week’s most important economic report, today wins in terms of sheer volume and variety. We get almost every flavor of potential market mover, including relevant econ data, a Treasury Auction, and even several Fed speakers. To top it all off, it’s neither a Tuesday or a Friday, hence less likely […]

Mortgage Rates Higher in Afternoon, Unchanged from Friday

June 23, 2014

Mortgage rates were slightly lower this morning, but moved higher in the afternoon, ultimately matching Friday’s latest offerings. Despite some economic reports in the morning, bond markets were quiet. Motivation for the improvement in rates could be partially due to lenders being hesitant to pass along Friday’s late-day bond market gains in the form of […]

MBS Day Ahead: Busy Week Includes Lots of Housing Data, Treasury Auctions, and GDP

June 23, 2014

One of the biggest stories of the past 3 months has been the big miss in first quarter GDP followed by a big downward revision leaving growth at -1.0%. Wednesday brings the 3rd and final reading on Q1–now forecast to be down nearly 2.0%. While some of the initial weakness may be attributed to weather […]

MBS MID-DAY: Another Day, Another Chance to Reaffirm The Range

June 20, 2014

First thing’s first. “Boring” isn’t necessarily bad when rates are staying fairly close to their lowest levels in a year. That said, could the past few days be any more boring relative to their potential?

Originators May be Overlooking This Niche

June 19, 2014

A housing industry that remains focused on originating safe primary mortgages may be overlooking a new purchase money niche “ready for the tapping.” According to Fannie Mae’s Housing Industry Forum, second home mortgages may be safer loans, with lower delinquency and default rates than is found in the traditional primary home market.

MBS Day Ahead: Fed Leaves Bond Markets in Same Old Range; Will Data Even Matter?

June 19, 2014

Today’s economic data–like many other days in the history of financial markets–COULD certainly matter. Whether or not it does, depends on where it falls. Typically, we shouldn’t expect Jobless Claims to be a substantial market mover. It can have a noticeable impact fairly regularly, but that impact is a shadow of its former self (back […]

Uptick in Rates Provokes a Big Drop in Volume

June 18, 2014

There was a significant drop in mortgage applications, especially for refinancing, during the week ended June 13 the Mortgage Bankers Association (MBA) reported today. Results of MBA’s Weekly Mortgage Applications Survey showed a decline in the Market Composite Index, a measure of application volume, of 9.2 percent from the previous week on a seasonally adjusted […]

MBS Day Ahead: Last Day before FOMC; Housing Starts and CPI

June 17, 2014

You have to have an industrial strength juicer and be willing to drink from thimbles if you hope to squeeze any interesting conclusions out of financial markets so far in 2014. Even heading into the end of 2013, analysts began citing the evaporation of volatility as markets began accepting the fact that tapering was priced-in […]

MBS RECAP: Despite Slight Weakness, Bond Markets Break Losing Streak

June 13, 2014

Heading into the last few hours of the day, MBS are only off 1 tick from yesterday’s latest levels, but unlikely to make it back to yesterday’s highs. That’s OK!

New Home Sales Estimates Slip -MBA

June 13, 2014

New homes sales posted a loss in May, erasing the 5 percent gain made in April. The Mortgage Bankers Association (MBA) estimated that new single-family home sales were running at a seasonally adjusted annual rate of 374,000 units in May compared to 419,000 units in April, a seasonally adjusted decline of 8 percent.

Mortgage Rates Improve After Strong Treasury Auction

June 12, 2014

Mortgage rates made a stronger move lower today, following a well-received 30yr Treasury auction. Treasury yields don’t directly dictate mortgage rates, but MBS (the mortgage-backed-securities that actually do dictate rates) tend to come along for the ride when Treasuries make big moves. That’s what happened today.

MBS Day Ahead: On an Otherwise Barren Week, Today is an Oasis of Potential

June 12, 2014

So bond markets were supposed to suffer heading into to 2014, and most everyone was wrong. Once everyone got on the same page about being wrong, then bond markets were supposed to supposed to be bath in nothing short of a miraculous confluence of previously unforeseen positive factors.

More Individual NMLS Licenses among Fewer Companies in Q1 2014

June 11, 2014

The first quarter 2014 report of the National Mortgage Licensing System (NMLS) released today states there were 15,246 entities that held a total of 34,054 licenses to operate as a mortgage company. This represents a decrease in the number of companies holding licenses of 1.8 percent from one year earlier. There were 19,493 branches holding […]

Refi and Purchase Apps Bounce Back After Holiday Week

June 11, 2014

Mortgage applications surged by 10.3 percent during the week ended June 6. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of application volume increased by that amount on a seasonally adjusted basis and was up 22 percent compared to the previous week which had been shortened by the observed Memorial Day […]

Mortgage Rates Rise to 1-Month Highs

June 10, 2014

Mortgage rates continued higher today adding to a losing streak that has only seen one day of improvement in the last 9. Rate sheets now most closely match those seen on May 10th. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) is back at 4.25% for the second straight day. Most […]

MBS Day Ahead: Treasury Auctions Begin, Europe Back in Action, and MBS Roll

June 10, 2014

Yesterday was a complete non-starter except inasmuch as it started to go sideways shortly after the open and never looked back. Traders were trading, but not like there were any goals or pressing needs.

Mortgage Rates Back up to Last Wednesday’s Levels

June 9, 2014

Mortgage rates rose moderately today. Market conditions were exceptionally quiet and after trading opened in the secondary mortgage market, there was almost no movement for the rest of the day. This follows 2 days at the end of last week that also realized very little of their rate-movement potential, though they did see some volatility. […]

MBS Week Ahead: For Bonds, Quiet Week Leaves Time to Reflect

June 9, 2014

In stark contrast to the previous week, this one is very light in terms of economic data and events. That relative silence coincides well with rates returning to a crossroads of sorts. When the pace of events quickened over the past three weeks, so too did the pace of market movement. Yields broke the previous […]

MBS MID-DAY: Bond Markets Nearly Unchanged After Morning Strength

June 6, 2014

Long before yesterday’s ECB Announcement, traders and talking heads alike have been lamenting the lack of volatility in bond markets. If they’d only known that BOTH the ECB news and today’s NFP would be so brutally close to consensus, those lamentations might have been accompanied with wails of incredulity, punching of computer monitors, and possibly […]

Mortgage Rates Dodge Bullet; One More Tomorrow

June 6, 2014

Mortgage rates finally ended a 5-day losing streak, moving lower for the first time since May 28th. Today’s big order of business was the European Central Bank (ECB) Announcement. What does the ECB have to do with mortgage rates? Quite a lot actually. Expectations for rate cuts and other accommodation measures have been helping bond […]

Mortgage Rates Dodge Bullet; One More Tomorrow

June 5, 2014

Mortgage rates finally ended a 5-day losing streak, moving lower for the first time since May 28th. Today’s big order of business was the European Central Bank (ECB) Announcement. What does the ECB have to do with mortgage rates? Quite a lot actually. Expectations for rate cuts and other accommodation measures have been helping bond […]

MBS RECAP: Bond Markets Take Seats Ahead Data Parade

June 5, 2014

The next two days are potentially the biggest so far this year for bond markets. The key issue will be the European Central Bank’s policy announcement. At this point, the word on the street is that there’s an extremely high likelihood of rate cuts, a low likelihood of outright asset purchases and a decent chance […]

Mortgage Applications Slightly Lower; Possible Holiday Effects

June 4, 2014

Mortgage application activity retreated again during the holiday-shortened week ended May 30. The Mortgage Bankers Association (MBA) said that mortgage applications as measured by its Market Composite Index decreased during the week by 3.1 percent on a seasonally adjusted basis and were down 14 percent on a non-seasonally adjusted basis. The week’s results were adjusted […]

Mortgage Rates Higher as Pre-ECB Volatility Ramps up

June 3, 2014

Mortgage rates continued moving higher at a relatively brisk pace today. The historically normal sources of market guidance–like economic data and Fed policy–remain afterthoughts compared to the current flavor of the month (or “2 months” as the case may be). The flavor? Potential rate cuts and easing measures from the European Central Bank (ECB). Back […]

April Price Increase was Smallest in 14 Months

June 3, 2014

Home prices posted a 26th consecutive month of year-over-year increases in April on the CoreLogic Home Price Index (HPI) Prices nationwide, including those of distressed homes sold during the month, increased 10.5 percent compared to the HPI in April 2013. However, this is the smallest year-over-year increase since February 2013. There was a 2.1 percent […]

MBS RECAP: Bonds Manage to Consolidate Recent Weakness Rather Than Add to it

June 2, 2014

Today was a good test for MBS and Treasuries. It spoke volumes to the current state of play in bond markets: traders are afraid to get too short ahead of next week’s ECB Announcement (“getting short” equates to higher rates). Traders may also be afraid to get too short in general, simply because that decision […]

MBS RECAP: Bond Markets Use Up Every Last Bit of Correction Potential

May 30, 2014

GDP came out much weaker than expected this morning and Jobless Claims were noticeably stronger than expected. Pending Home Sales were stagnant and depressing, and the 7yr Treasury auction was pretty darn good considering how aggressively bond markets rallied leading up to it.

Mortgage Rates Slightly Higher After Mid-Day Volatility

May 29, 2014

Mortgage rates began the day in even better shape than yesterday, but market volatility prompted most lenders to raise rates in the afternoon. That leaves today’s rate sheets in just slightly weaker territory compared to yesterday, but still better than any other day of the year. The most prevalently quoted conforming 30yr fixed rate for […]

Pending Home Sales Rise Less Than Expected

May 29, 2014

Pending home sales in April rose above those in the previous period for the second month in a row. The National Association of Realtors® said that contract signings in April increased 0.4 percent from those in March, sending the NAR’s Pending Home Sales Index to 97.8 from 97.4. The Index is 9.2 percent lower than […]

Mortgage Rates Drop Abruptly; Now Approaching 4%

May 28, 2014

After tying the record for most consecutive days with no change, mortgage rates moved significantly lower today. The significance isn’t due to the size of the move–as far as day to day changes go, there have been bigger. Rather, the impressive part of today’s rally is that it occurred while rates were already effectively at […]

Mortgage Banking Profits Hit Hard in 2nd Half of 2013

May 22, 2014

Mortgage banks had what the Mortgage Bankers Association (MBA) termed “respectable” production profits in 2013, even though they were dramatically lower than in 2012 and declined precipitously from the first half of 2013 to the second. MBA’s Annual Mortgage Bankers Performance Report said that banks responding to its survey posted average per loan profits of […]

Fed discussed rate hike procedures, no action soon

May 22, 2014

Federal Reserve officials discussed rate hike procedures at a joint meeting, but agreed the discussion does not signal rate action is coming soon. That was one of the key data points from the minutes of the FOMC meeting, released Wednesday. The Fed discussed the right mix of tools to control rates and board members agreed […]

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May 21, 2014

Rates have now been holding near 2014 lows for 5 straight days. Despite volatility in markets during the day, the end-of-day rate levels haven’t moved too much during this time. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) remains 4.125%, with slightly fewer instances of lenders being better-priced at 4.25%. Most […]

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May 19, 2014

So far in the month of May, MBS have been making much bigger day to day moves than in April. But it’s worth remembering that things can get a lot more volatile, for better or worse. While May seems fast-paced compared to April, it’s nothing compared to recent episodes of volatility in MBS prices. The […]

Home Sales Improve For First Time in Five Months, But Not As Expected

December 31, 2013

Contracts for purchasing existing homes increased in November, according to the National Association of Realtors. The increase proved to break a five-month negative streak in the real estate industry and realtors expect to see growth in home sales throughout 2014. Despite a 1.6% decrease from November 2012, pending home sales are still 0.2% higher than […]

Ginnie Mae Obtains Mortgage-Backed Securities for September with $31 Billion

October 23, 2013

Ginnie Mae recently announced that during the month of September, the agency guaranteed $31.22 billion in mortgage-backed securities. More than $27.54 billion in single-family pools were issued in Ginnie Mae II along with $3.68 billion for single-family pools with Ginnie Mae I. Ginnie Mae initiated $2.48 billion in multifamily mortgage-backed securities last month as well. […]

Sales of U.S. Homes Drop as Affordability Declines

October 22, 2013

The National Association of REALTORS recently reported a 1.9% decrease in sales of existing homes in the U.S. as home prices increased by 11.7%. For the first time in three months, purchases of previously owned homes fell in September. Existing home sale prices increased year after year to $199,200 last month from $178,300 in September […]

Low Credit Scores Affect Homeownership

October 18, 2013

Good credit is essential in today’s age for investing in large products such as a car, an apartment or even a house. According to the real estate firm Zillow, prospective homebuyers with a credit score below 620 are being denied quotes, resulting in 30% of Americans without a mortgage. Home equity loans are becoming extremely […]

Benefits of Homeownership Become Clear Through Accountable Mortgage Practices

June 14, 2013

  Contrary to popular belief, the benefits of homeownership have not been overemphasized. A new study shows that it is still a good investment for low- and- moderate households as long as the lending process is done right, through responsible mortgage practices. Michal Grinstein-Weiss and a team of researchers conducted a three-year study involving a […]

Home Prices in April Reach its Highest Level in Seven Years

June 5, 2013

CoreLogic reported that home prices jumped 12.1 percent since last April, which was the biggest gain since February 2006. Forty-eight states and 94 large U.S. cities saw such an increase. The small number of houses for sale versus the ample amount of buyers competing for these homes is causing prices to rise. According to leading […]

Senate Introduces Jumpstart GSE Reform Act

March 15, 2013

Mortgage News Daily recently reported that four members of the Senate Banking, Housing and Urban Affairs Committee have introduced legislation that would control how the increase in guarantee fees levied by Fannie Mae and Freddie Mac are used and when the stock in the two companies can be approved for sale. The Jumpstart GSE Reform […]

Affordable Financial Services LTD Says FHA’s Move to Increase Mortgage Insurance Premiums Will Negatively Impact Home Sales

February 1, 2013

Brian Leibowitz, CEO and Owner of Affordable Financial Services LTD, says there will be fewer homes being purchased once the Federal Housing Administration’s plans to increase mortgage insurance premiums on homeowners and request from borrowers a larger down payment on a home are implemented. He also said that these changes will also place an additional financial burden on […]

RATES REBOUND GIVING BORROWERS A SECOND CHANCE

August 23, 2012

Mortgage Rates proceeded lower again today, adding on to the already substantial improvements from yesterday. Some of the gains reflect additional lender reprices after yesterday’s RateWatch article was published, though rate sheets generally improved again today by an equal amount. Best-Execution for 30yr Fixed Conventional Loans has QUICKLY regained the 3.5% territory with some lenders […]

The Market is on the Move …

August 16, 2012

Mortgage Rates moved slightly higher again today as the secondary mortgage market experienced one of its most volatile sessions since early June. Although the pace of the movements during the day was brisk, rates markets began the day in better territory, making for slightly improved rate sheets in the morning.

RATES ARE MOVING BACK UP

August 16, 2012

IF YOU HAVEN’T LOCKED IN BY NOW, YOU MAY HAVE MISSED THE BOAT!!!

Breaking News

July 2, 2012

Slightly more than a month after it confirmed he was leaving his post as President and CEO, the Mortgage Bankers Association ( MBA ) announced that David H. Stevens would remain at the head of the trade association. Steven’s resignation and appointment as president of Sun Trust Mortgage was announced by both MBA and the […]

July 4th News

July 2, 2012

On July 4th in 1776, the Declaration of Independence was approved by the Continental Congress, setting the 13 colonies on the road to freedom as a sovereign nation. (This year it has turned tomorrow into somewhat of a “get away” day for many.) As always, parades, fireworks and backyard barbecues await. It is estimated by […]

Rates Still Holding Low

June 11, 2012

Mortgage Rates held steady to slightly weaker today , though some lenders recalled rate sheets in the afternoon as bond markets improved. That helped the average Best-Execution rate get back near Friday’s offerings, which were among the best of the week last week. Over the past two weeks, rates have been operating in a fairly […]

Rates Rates Rates…..

May 25, 2012

Mortgage Rates continue to experience minor volatility near all-time lows, bouncing moderately LOWER today after moving HIGHER yesterday. Rates moved in a different direction every day this week! Today’s moves didn’t take rates to the lowest recent levels, but did slightly improve borrowing costs for the prevailing rates.

Harp 2.0 Changes Could be Coming Soon

May 8, 2012

Secretary of Housing and Urban Development Shawn Donovan testified before a hearing of the Senate Committee on Banking, Housing, and Urban Affairs on the current implementation and efficacy of HARP 2.0 and on several bills that have been introduced to expand it or remedy some of its flaws.

Rates on the Move once again….

April 24, 2012

Mortgages Rates are back to their lowest levels since February. For an increasing number of lenders, current rates begin to shift the balance towards 3.875% as being the only Best-Execution Rate for Conventional 30yr Fixed Loans. Best-Ex is currently shared by 3.875% and 4.0%.

Mortgage Rates Improving?

April 9, 2012

Mortgages Rates improved very slightly in most cases today, though some lenders’ rates were unchanged. This follows a strong move lower by most lenders on Friday after a weaker-than-expected Jobs report. There’s a greater-than-normal variability between lender offerings, but in general, mortgage rates are near their best levels of the month.

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April 9, 2012

Mortgages Rates improved very slightly in most cases today, though some lenders’ rates were unchanged. This follows a strong move lower by most lenders on Friday after a weaker-than-expected Jobs report. There’s a greater-than-normal variability between lender offerings, but in general, mortgage rates are near their best levels of the month.

Investor News

March 27, 2012

While homebuyers are pursuing short sales with less enthusiasm because of the lengthy and unpredictable process, investors are finding them a new target of opportunity . Inside Mortgage Finance HousingPulse Tracking Survey found that investors continued to boost their activity in the housing market during February and accounted for 24.2 of all housing transactions and […]

News Flash !

March 21, 2012

JPMorgan Chase & Co. (JPM) and Bank of America Corp., the two biggest U.S. banks, are cutting senior mortgage traders and salesmen amid a decline in the asset-backed securities market

Rates are moving up at a fast pace …

March 14, 2012

Mortgages Rates moved higher today at their fastest pace in months. 3.875% Best-Execution is off the table today and even the more aggressively-priced group of lenders is most advantageously priced at 4.0%, some lenders at 4.125%.

Times they are a changing ?

February 13, 2012

Construction of multifamily units will lead the U.S. building industry again this year, allowing housing to contribute to growth for the first time in seven years, according to economists Michelle Meyer and Celia Chen.

Breaking News

February 9, 2012

Bank of America Corp., JPMorgan Chase & Co. and three other U.S. banks reached a $25 billion settlement with 49 states and the U.S. government to end a probe of abusive foreclosure practices stemming from the collapse of the housing bubble. The U.S. Justice Department, Department of Housing and Urban Development and state attorneys general […]

Mortgage Rates

February 9, 2012

The average rate on the 30-year fixed mortgage dropped to the lowest since records have been kept, creating a tempting target for people to refinance their homes.

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

February 9, 2012

 – Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit. The analytics firm notes the average credit score required to attain a mortgage loan will be reduced…

Are more Banks on the Move?

February 8, 2012

Ally said to be Shopping Mortgage Unit One of the financial institutions that are party to the reported settlement agreement with the attorneys general of the majority of the states is reportedly on the auction block. According to Bloomberg News, Ally Financial is talking with private equity firms about selling its mortgage unit, Residential Capital […]

New Government Plans

January 31, 2012

Private equity firms are jumping into distressed housing as the U.S. government plans to market 200,000 foreclosed homes as rentals to speed up the economic recovery.

Record Low Rates Are Here Once Again !!!

January 31, 2012

It’s happened before and it happened again today: Mortgages Rates hit new all time lows today. Please note, that the actual interest rate you would have been quoted last week and this week may not have changed, but based on raw data from more than 20 leading lenders as well as feedback from the MBS […]

Rates are on the move…

January 26, 2012

Rates for U.S. 30-year mortgages climbed from the lowest level on record after Federal Reserve officials pledged to keep their benchmark interest rate near zero through at least late 2014 to help bolster the economy. The average rate for a 30-year fixed loan rose to 3.98 percent in the week ended today from 3.88 percent, […]

Breaking News

January 23, 2012

Acting Federal Housing Finance Agency (FHFA) Director Edward J. DeMarco responded Friday to a request from 16 House Democrats to explain the statutory authority that DeMarco has claimed prohibits FHFA from offering principal reduction as part of loan modifications on loans it owns or guarantees.

Low Down on Morgage Rates this week….

January 18, 2012

After setting new records on Friday, Mortgage Rates are absolutely flat to start the week. That means that Best-Execution remains most appropriately at 3.875% although 3.75% continues to be as close as it’s ever been to getting equal recognition. Depending on the scenario in question, lower rates are available and in most cases, could make sense.

Appraisers are Fighting Back…

January 17, 2012

The Appraisal Institute has apparently had enough and has decided to fight back against what it perceives as unwarranted blame for depressed home prices . In a press release the Institute says, ” Don’t blame the real estate appraiser if it turns out that house you’re trying to sell or buy isn’t worth what you […]

Foreclosure News !!!

January 12, 2012

Foreclosure activity hit its lowest level in four years in 2011, decreasing by a third from the previous year according to data released today by RealtyTrac. One in every 69 housing units in the U.S. was subject to a filing during the year, 1.45 percent of the total housing stock. Activity also decreased for the […]

NEW FANNIE MAE NEWS

January 10, 2012

Statement of FHFA Acting Director Edward J. DeMarco on Michael Williams Announcement “Today Michael Williams announced his intention to step down as Chief Executive Officer of Fannie Mae after 21 years of service to the company. Over these years, Mr. Williams has served Fannie Mae in many capacities, most notably as the executive responsible for […]

Your Holiday Update !!!

January 5, 2012

There sure is a lot going on for a holiday-shortened week. First off, the Fed sent Congress a little missive on how to fix the housing and mortgage market . Among the ideas is forming a national strategy to facilitate the conversion of foreclosed properties into rentals, allowing banks to rent their repossessed homes rather […]

Affordable Financial Services LTD’ Weekly Finance Review

January 3, 2012

The information reviewed at the December 13 meeting indicated that U.S. economic activity expanded moderately despite some apparent slowing in the growth of foreign economies and strains in global financial markets. Conditions in the labor market seemed to have improved somewhat, while overall consumer price inflation continued to be more modest than earlier in the […]

Mortgage Buybacks May Cost Banks Over $100 Billion

November 30, 2010

Bloomberg reported today that U.S. banks may face more than $100 billion in costs as more investors demand that issuers of mortgage-backed securities repurchase bad loans. According to Paul Miller of FBR Capital Markets, U.S. banks such as JPMorgan Chase & Co. and Bank of America Corp. could face a price tag between $54 billion […]

A Foreign Accent on U.S. Mortgage-Backed Securities

May 6, 2010

Reuters is reporting that foreign investors — discouraged and anxious about the debt incurred by Greece and the ensuing problems of other Euro zone economies as the result — are turning to U.S. mortgage-backed securities as a viable investment option. From January 2009 to March 2010 — as a way to spur the housing market […]

When Should You Refinance?

December 24, 2009

An article in the Salt Lake Tribune today discusses when it is advisable to refinance a mortgage. Refinancing activity has been high recently with around 66 percent of mortgage applications being refinanced in October. The recent changes in the housing market and mortgage rates have made it confusing for borrowers to ascertain what may be […]

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December 17, 2009

Weekly Finance Review – November 12, 2009

November 13, 2009

Mortgage Backed Securities have lost some steam as we get close to the auction results.  Trading activity is thin this morning as investors await the results of this afternoon’s $16 billion sale of 30-year bonds by the Treasury Department. This auction represents the last leg of a record-sized $81 billion three-part borrowing spree by Uncle […]

Weekly Finance Review

November 3, 2009

Last Week  A good week for the interest rate markets. Mortgage interest rates declined about 10 to 12 basis points, the 10 yr note yield continued to find strong technical support at 3.50%. The Treasury once again successfully sold $123B of notes in four auctions. Consumer confidence measured by The Conference Board declined more than […]

About AFS

September 21, 2009

Second to none, AFS holds the highest regards for our clients; we will always get the most reasonable quotes and do honest business in the most reasonable amount of time.  With so many choices to choose from, make your choice easy and beneficial by choosing AFS for all your financial needs.