Archive for August, 2010

Lock Desks Buy Back Hedges. Potential Shift in Production Coupon Looms

Tuesday, August 31st, 2010

Posted To: MBS CommentaryYesterday we heard banks were buying back MBS hedges. This means lock desks were actively reducing their pipeline coverage (forward hedges) to account for an expected increase in fallout. More fall out = less deliverable loans = added hedging costs unless you replace the production with similar ...

ATTENTION: Mortgage Rates Hit New Lows

Tuesday, August 31st, 2010

Posted To: Mortgage Rate WatchIf you've been floating your loan or have yet to apply for a refinance because it just didn't seem worth the hassle, congratulations, mortgage rates hit new lows today. If you've refinanced in the last 20 months, there is a darn good chance your refinance option ...

S&P/Case-Shiller: Home Prices Rise in June. Tax Credit Hangover Ahead

Tuesday, August 31st, 2010

Posted To: MND NewsWireThe Standard & Poor's/Case-Shiller U.S. National Home Price Index was up 4.4 percent in the second quarter of 2010, more than recovering from the 2.9 percent loss that was suffered in the first quarter, but the index committee warned that recent housing indicators "point to more ominous ...

Production MBS Coupon Hits New High. Loan Pricing Noticeably Better as 3.5s Trade Forward

Tuesday, August 31st, 2010

Posted To: MBS CommentaryWhile 2 of the 3 top tier data sets released this morning failed to improve on a month to month basis, 2 of those 3 were better than economists were expecting. Consumer Confidence perked up and beat consensus forecasts while Chicago PMI was a downer all around. ...

New FHA MIP Structure to Slow Streamlines; Appraisal Adjustments; GSE MBS Issuance in July; FDIC Transparency; Update on Non-Agency Paper

Tuesday, August 31st, 2010

Posted To: Pipeline PressI was talking to a correspondent rep yesterday, and he said, "I just got the best question from a client. The client (not a mortgage banker or broker) asked, "Hey, we have a borrower that up until now has been using a social security number that was ...

The Day Ahead: Home Prices, Consumer Confidence, FOMC Minutes

Tuesday, August 31st, 2010

Posted To: MBS CommentaryRecap of Yesterday After experiencing a sizable sell off on Friday, the bond market spent the day yesterday in recovery mode. Prices of U.S. Treasuries rallied across the curve with the long end leading the way. The 10 year TSY note went out +1-00 at 100-26 yielding ...

Mixed Rate Outlook Provides Perspective: Risk Greatly Outweighs Reward

Monday, August 30th, 2010

Posted To: MBS CommentaryI sat down to write "The Week Ahead" last night and drew a blank. Not that it was a tedious task outlining the events that held the potential to move mortgage rates, that was the easy part. My frustrations arose when formulating an outlook. Allow me to ...

What Might Move Mortgage Rates in the Week Ahead?

Monday, August 30th, 2010

Posted To: Mortgage Rate WatchLast week ended on a very sour note for mortgage rates... After a better than expected read on 2nd quarter GDP and a not so scary speech from the Federal Reserve Chairman, the 10 year Treasury note yield rose 16.6 basis points and mortgage-backed securities prices ...

HUD Secretary Tiptoes Around Another Tax Credit, Pushes Balanced Housing Policy

Monday, August 30th, 2010

Posted To: MND NewsWireIn the wake of a full week full of bad economic news, especially housing indicators, Secretary of Housing and Urban Development (HUD) Shaun Donovan appeared on CNNs Sunday morning news and interview program State of the Union . Host Ed Henry prefaced the interview with July housing ...

MBS Prices Recover from Friday Downtrade. Reprices for Better Possible

Monday, August 30th, 2010

Posted To: MBS CommentaryLed by a corrective bounce in Treasury prices, rate sheet influential MBS coupons have rallied more than 8 ticks from where they opened at the session lows. This is not reflective of concentrated demand for agency MBS, as evidenced via wider production MBS coupon yield spreads, as ...