National News

Skip Navigation LinksNews Sources

Learn the ins and outs of real estate finance. We collected the resources you need to make an inform decision when you finance a real estate property or invest on IRESE. If you have a link or a news story, please contact us.



Time Period
From
mm/dd/yyyy
To
mm/dd/yyyy
 

Page 1 of 5 Next >


12/7/2018 MBS RECAP: Bonds Think it Over After NFP, Then Finally Decide to Rally

Posted To: MBS Commentary

This morning's trading--both before and after NFP came out--basically acted as additional time for debate . Both MBS and Treasuries bounced quickly, but symmetrically around yesterday's closing levels before finally choosing a direction. Actually, the direction may have been chosen for them to some extent, as it was the stock market that made the first move. To bonds' credit, they didn't lose their cool in the first hour and a half of trading as stocks moved higher. Once it became clear that equities were heading down and out, bonds finally followed. 10yr yields hit their lowest closing levels since late August. MBS haven't bounced back quite as much relative to late-summertime levels, but they're getting close. NFP itself didn't seem to matter much, although I suspect...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/7/2018 Mortgage Rates Lowest Since September After Jobs Report

Posted To: Mortgage Rate Watch

Mortgage rates held on to their recent improvements today after the important Employment Situation (the big "jobs report") showed November job creation was lower than expected. In general, weaker job creation is good for interest rates because it speaks to slower economic growth and inflation (both of which are enemies of rates). This report was particularly important because a strong result would have cast doubt on several speeches from members of the Federal Reserve. Those speeches have warned about slower economic growth in 2019 and the potential for fewer rate hikes than previously anticipated. There were no clear winners or losers at first--probably because job creation is still historically solid. Additionally, the unemployment rate remained ultra low, and wage growth remained above 3...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/7/2018 New Fannie/Freddie Requirements May Penalize High-Risk Borrowers

Posted To: MND NewsWire

Three researchers from the Urban Institute (UI) recently analyzed the new capital standards rule proposed by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac (the GSEs.) The proposed rule includes two alternative leverage ratio proposals. Under the first, the GSEs would be required to hold capital equal to 2.5 percent of total assets and off-balance sheet guarantees, the second, to hold capital equal to 1.5 percent of trust assets and 4 percent of non-trust assets. The second approach differentiates between the greater funding risks of non-trust assets and the lower funding risks of the trust assets while increasing the capital requirements for both relative to the current statutory requirements. On Thursday we summarized their analysis of how well the rule might align...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/7/2018 Uptick in Home Purchase Sentiment Reflects Increased Confidence

Posted To: MND NewsWire

Fannie Mae's Home Purchase Sentiment Index (HPSI) for November rose slightly, but within the 0.5-point increase was some increased confidence about personal finances and the wisdom of buying a home. The index, which consolidates responses from a subset of questions on the company's National Housing Survey, rose to 86.2 from 85.7 in November. The index is 1.6 points lower than in December 2017. A survey high record was set in the net share of Americans who reported their income was up significantly over the last 12 months. A 5-point increase brought the net share to 24 percent. Fifty-seven percent of respondents told pollsters it was a good time to buy a home while 34 percent disagreed. This resulted in net positive responses of 23 percent, up two points from October. The other component of...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/7/2018 Warehouse Products; Vendor/Service Provider Directory; Yield Curve Primer

Posted To: Pipeline Press

The year has sped along, and here we are at Pearl Harbor Day already. Although mortgage rates have lagged, what has pushed Treasury rates down? Released earlier this week, the Federal Reserve's latest report on economic conditions, known as the Beige Book, says most of its 12 regions achieved satisfactory growth in November but also says there is "increased uncertainty" among businesses over the influence of U.S. tariff policy. The report highlights rising costs for manufacturers and problems for farmers due to counter-tariffs imposed by China and others. (The Trump Administration’s trade fight with China has been particularly hard in Nebraska, with its Farm Bureau estimating that retaliatory tariffs let to a loss of more than $1 billion so far in 2018, which is about 11 to 16 percent...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/7/2018 MBS Day Ahead: So Much of The Recent Volatility Has Been Building Toward Today

Posted To: MBS Commentary

Powell's speech last week at the Economic Club of New York marked the beginning of an official shift. Until then, while the Fed had its dovish dissenters, the consensus was "steady as she goes" with respect to regular rate hikes in the coming quarters. The only uncertainty was whether or not the Fed would hike 2 more times in 2019 before leveling off (maybe it would be 3 times, maybe 1 time...). But seemingly overnight, the consensus is now that we're only likely to see one hike in December, and perhaps NO hikes in 2019. This has been a big adjustment for financial markets. You might think that stocks would enjoy this shift (after all, the news has been eager to tell you that stocks are tanking because of rates), but no... This move was actually led by the longer end of the...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/7/2018 Better Access to Conforming Loans Means More First-Timers in Market

Posted To: MND NewsWire

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. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The Conventional MCAI increased (2.4 percent) and the Government MCAI decreased (0.1 percent). Of the component indices of the Conventional MCAI, the Jumbo MCAI rose 1.1 percent, while the Conforming MCAI gained 4.0 percent. "The supply of credit continues to drift higher, driven once again by growth in the conventional credit space, while credit supply in government loans was essentially unchanged from the previous month," said Joel Kan, MBA's...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/7/2018 Sluggish Construction Challenges the Housing Market

Posted To: MND NewsWire

While there has been a lot of talk since the recovery took hold about the lack resiliency in the residential construction sector, the issue is now moving from an academic discussion to one on the verge of alarm. As Freddie Mac's Economic and Housing Research Group writes in the company's Insights blog, "The inadequate level of U.S. housing supply is a major challenge facing the housing market in 2018 and likely for years to come." The Insights' authors, Sam Khater, Chief, and Len Kiefer, Deputy Chief Economists, and Ajita Atreya and Venkataramana Yanamandra, both senior quantitative analysts, estimate the U.S. needed 370,000 more than the 1.25 million units that were added to the stock in 2017 to satisfy demand. In the forty years starting in 1968 to the start of the Great Recession in 2008...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/6/2018 MBS RECAP: Huge Day For Bonds, For Better and Worse

Posted To: MBS Commentary

Without discussing what tomorrow may bring for bond markets, we can safely say that today was big. Both in terms volumes and outright trading levels, we haven't seen a bigger combo since the big stock sell-off in early October, and that came near the top of the rate range. Today was arguably much more significant because it occurred as rates were already pushing multi-month lows. Today was big in a good way in the sense that yields made it all the way down to 2.826%. But the same level raises risks of a technical bounce. After all, 2.82% is the resistance level we've been watching for the past 2 sessions and we bounced fairly hard there today (10's ended at 2.89%). At the risk of stating the obvious, a lot could be riding on tomorrow's jobs report. We have NFP built up to pass...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/6/2018 Mortgage Rates Are On a Tear!

Posted To: Mortgage Rate Watch

Mortgage rates dropped significantly yet again today, adding to an already impressive week of improvement and bringing most lenders into their best territory since September 13th, 2018. The average lender improved by more than an eighth of a percentage point in just the past 3 business days and by nearly 3/8ths of a point from the highs seen in early November. This comes out to roughly $70/month for a $300k loan, or an upfront savings of $4500 if you were to buy your rate down (paying points) back in early November. Much of the move has come courtesy of a rapid shift in expectations about the economy and Fed policy. Investors have been worrying about the longevity of the current economic cycle more and more as it ages. By some measures, this is already the longest economic expansion ever (and...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/6/2018 MBS Day Ahead: Quick Recap of How/Why Rates Have Rallied So Apparently Quickly

Posted To: MBS Commentary

Good times are rolling in the bond market, even if they're rolling much more for Treasuries as opposed to MBS. Nonetheless, MBS will continue to benefit as long as Treasuries are rallying, and the latter is beginning the day at new multi-month lows. Seeing 10yr yields under 2.9% may feel sudden, but it's actually quite logical . We know rates had been moving higher in general due to 3 main problems: increased Treasury issuance, increased growth/inflation risk, and a Federal Reserve that had no qualms about continuing to remove accommodation. We know that rates had been trading in this 2.8-3.0% range all summer. Then in September and October, they were pushed higher by surprisingly strong economic data (some of which, like average hourly earnings, pointed toward inflation) and even tougher...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/6/2018 Profitability Products; New Penn Re-Branded; What is Pushing Rates Lower

Posted To: Pipeline Press

I still receive questions about HMDA. It’s good to know about the 2018 edition of A Guide to HMDA Reporting: Getting it Right! (the Guide). Developed by the Federal Financial Institutions Examination Council, it provides a summary of certain key requirements of the Home Mortgage Disclosure Act (HMDA). Features include “Where to Look” hints, and the complete Consumer Financial Protection Bureau’s (CFPB) Small Entity Compliance Guide in Appendix B. Copies of the previously published resources, such as the CFPB’s Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart are also included as sections of The Guide . Lender Products and Services Don’t let the changing landscape or current market conditions inflate your loan origination costs. Get...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/6/2018 UI Researchers Evaluate Proposed Changes to Fannie/Freddie

Posted To: MND NewsWire

In June the Federal Housing Finance Agency's (FHFA) issued a proposed capital standard for the government-sponsored enterprises (GSEs), Freddie Mac and Fannie Mae. Three Urban Institute researchers have analyzed the rule with an eye to answering two questions: how well it will align risk and capital across the various mortgage attributes and how the capital requirement might vary across the business cycle. Requiring too much capital raises mortgage rates and reduces homeownership; too little results in insolvency and financial crisis. The proposed rule includes two alternative leverage ratio proposals. Under the first, the GSEs would be required to hold capital equal to 2.5 percent of total assets and off-balance sheet guarantees. This approach would require them to hold a minimum amount of...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/5/2018 Mortgage Applications Bouncing Back

Posted To: MND NewsWire

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. The Mortgage Bankers Association (MBA) said its market Composite Index, a measure of loan application volume, moved up 2 percent on a seasonally adjusted basis and after an adjustment to the prior week's report to account for the holiday. On a non-adjusted basis, applications shot up 42 percent. The seasonally adjusted Purchase Index extended its increases to a third week, rising 1 percent from the week ended November 23. The unadjusted index was up 36 percent and was 0.2 percent higher than the same week in 2017. The Refinance Index...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/4/2018 MBS RECAP: Big Rally in Bonds as Concerns Over Economic Cycle Grow

Posted To: MBS Commentary

Bonds rallied in a big way today with intraday lows of 2.885% in 10yr yields. There was also a prominent sell-off in stocks, begging the conclusion that this was a classic "stock lever" move. But that's not exactly right, and it's easy to see why. To be fair to stocks, they are still somewhat involved in the other series of events that precipitated this rally in bonds. When they topped out on Monday morning, it was at levels just below the last major top (itself just below the previous top). Taken together, it looks like stocks are having a very tough time bouncing back after the heavy losses of the past few months. Combine the stock hesitation with Fed speakers who are increasingly calling economic momentum into question and its enough for financial markets to start guarding...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/4/2018 Mortgage Rates Deeper into 2 Month Lows as Stocks Swoon

Posted To: Mortgage Rate Watch

Mortgage rates technically hit their lowest levels in exactly 2 months yesterday. Today merely takes them deeper into that territory. The size of the improvement is less impressive and less meaningful compared to that "lowest in more than 2 months" talking point. That said, taken in conjunction with the last 4 business days, the average lender is roughly an eighth of a percentage point lower. That comes out to $7/mo for every $100k financed (or $21/mo on a $300k loan). On a somewhat frustrating note, mortgage rates didn't experience nearly as big of a move as the broader bond market. For instance, 10yr Treasuries--the most widely-used benchmark for longer-term interest rates) dropped 0.05% today. Mortgages only managed to drop by 0.02% in terms of effective rates. The bigger improvement in...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/4/2018 Buyers Persist in Search for THE Dream Home

Posted To: MND NewsWire

It is often billed as the most important and consequential financial decision a household can makes, so it probably follows that buying a home should not be a quick one. Findings from the National Association of Home Builders' (NAHB's) Housing Trends Survey Report indicate that prospective home buyers take the decision seriously. They are also apparently willing to take their time. In its fourth and final report derived from the third quarter survey, NAHB analyst Rose Quint says that 13 percent of those polled indicated they intend to buy a home in the next 12 months and of those, almost half (46 percent) have already begun the search. Of those, 54 percent have been trying to find the right home for at least three months. This is a smaller share of long-term "lookers" than the survey found...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/4/2018 MBS Day Ahead: How Low Can We Go?

Posted To: MBS Commentary

The day begins with the December rally gathering steam, or at least maintaining the surprisingly strong levels achieved yesterday afternoon. Yields continue pushing back into the high 2% territory that they blew through on the way up back in September. How far could this thing run without help from economic data--chiefly, Friday's NFP? At the moment, the rally is already pushing against the bottom of its trend channel, as seen below. There's no rule that says it cannot break below that yellow line and rally at an even faster pace, but with important data coming up, that seems less probable than adherence to the trend channel (the parallel yellow lines). In that case, we can be on the lookout for a day of weakness fairly soon, even if the positive trend continues. Whenever we see a bounce...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/4/2018 LO Products; December Events and Training; Servicing Sale With CRA Loans

Posted To: Pipeline Press

Thinking about locking a loan tomorrow during the National Day of Mourning for George Bush? With the bond markets closed, plenty of mandatory execution desks, like Wells Fargo’s, will be closed. Check with the specific investor regarding best effort, bulk, AOT, and other commitment options tomorrow. Even though the market will be closed, Federal Reserve banks will be open. Plenty of lender’s lock desks will be issuing/posting rates and accepting locks. Many companies will be funding loans on Wednesday, December 5. And are independent mortgage bankers making any money funding these loans? Yes, a net gain but only of $480 on each loan in the third quarter , down from $580 per loan in the second quarter and $929 a year ago, per the Mortgage Bankers Association. Lender Books, Products...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

12/4/2018 Homeownership is a Top Priority for Millennials

Posted To: MND NewsWire

While their behavior thus far doesn't do much to validate it, a survey by Bank of America (BoA) finds that Millennials put a high priority on homeownership . In fact, among members of that generation responding to the company's 2018 Homebuyer Insights Report, 72 percent put owning a home near the top of their list, surpassed only by "being able to retire." Other important milestones named were traveling the world (61 percent) and getting married (50 percent), trailed by having children at 44 percent. These priorities define what is or will motivate their first home purchase with only 9 percent saying having kids and 21 percent getting married. Financial considerations are larger motivations, with having enough for a down payment ranking first at 57 percent and having a higher salary named by...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.





2.050116
Legal Agreements  |  Privacy  |  Security  |  Policies  |  Terms of Use  |  About Us  |  Your Feedback
Copyright © 2015 IRESE®, Inc. Patent Pending.