Archive for February, 2010

The Day Ahead: GDP, Consumer Sentiment, Existing Home Sales, Fed Speak

Friday, February 26th, 2010

Posted To: MND NewsWireSince Monday the benchmark S&P 500 has tumbled 0.56% but with fresh data on housing, growth, manufacturing, and consumer sentiment all before Noon, the trend could reverse course quickly. 90 minutes before the open, Dow futures are down 4 points to 10,312 and S&P 500 futures are ...

Mortgage Rates Touch 2010 Lows

Thursday, February 25th, 2010

Posted To: Mortgage Rate WatchMortgage rates didn't make much progress in either direction yesterday despite some bond market friendly economic data and a successful Treasury note auction. Mortgage backed securities traded in a tight range which prevented most lenders from passing along improved mortgage rates. The economic calendar started this ...

MBS CLOSE: Time To Ignore MBS?

Thursday, February 25th, 2010

Posted To: MBS CommentaryOk, so it's never a good time to ignore the MBS market, but the real question wouldn't fit into the title. Even then, it's a rhetorical question anyway, the purpose of which, to suggest that we merely ignore past ranges of MBS as indicative of how high ...

The Risk/Return Spectrum: Investing in a Mortgage Bank

Thursday, February 25th, 2010

Posted To: The Garrett Watts ReportWhat is the risk-return spectrum ? It is the relationship between the amount of return gained on an investment and the amount of risk undertaken in that investment. I was chatting with a well known mortgage banker that is exploring starting a de nova mortgage ...

MBA Proposes Forbearance for Unemployed Borrowers

Thursday, February 25th, 2010

Posted To: MND NewsWireThe Mortgage Bankers Association (MBA) has proposed a new tool for the Home Affordable Modification Program (HAMP) to specifically address the problems of unemployed borrowers. The Unemployed Borrower Bridge to HAMP Modification was laid out by MBA President John A. Courson in a letter to Treasury Secretary ...

MBS AFTERNOON: Another Day, Another Range Trade

Thursday, February 25th, 2010

Posted To: MBS CommentaryEerily similar patterns forming in MBS this afternoon versus yesterday. The only major difference would be the direction of the rangebound narrowing that has occurred on both days. That left us with an "unresolved triangle" yesterday, and the same technical pattern is pretty much already a given ...

Fed MBS Purchase Program Update: 96% of Funding Used

Thursday, February 25th, 2010

Posted To: MND NewsWireThe Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS). In the week ending February 24, 2010, the Federal Reserve purchased a total of $17.3 billion agency MBS. In those five trading days the Federal Reserve sold $6.3 billion (supported the roll market) ...

Freddie Mac: Weekly Rates Followed Bond Yields to Higher Levels

Thursday, February 25th, 2010

Posted To: MND NewsWireMost mortgage interest rates rose during the week ended February 25 according to data released on Thursday by Freddie Mac from its Primary Mortgage Market Survey. The 30-year fixed-rate mortgage (FRM) averaged 5.05 percent during the week, up from 4.93 the previous week. Fees and points were ...

MBS LUNCH: 7 Year Treasury Auction Results

Thursday, February 25th, 2010

Posted To: MBS CommentaryJust wanted to get you the basics, and let you know the first move for MBS has been to the upside, as tsy's have improved a little as well. Stay tuned for any changes to that outlook however as post auction tends toward volatility 7-YEAR NOTES YIELDS ...

MBS MORNING: Rates Dealers Trying to Tell Us Something?

Thursday, February 25th, 2010

Posted To: MBS CommentaryBen Bernanke has ended his testimony before the the Senate Banking Committee. There was a decent amount of discussion regarding Fannie Mae and Freddie Mac, but nothing substantial enough to move MBS valuations. The general talking point one should take away about the fate of the Enterprises: ...