MBS RECAP: Friendly Confluence of Events Helps Bond Markets Repair Some Damage

Posted To: MBS Commentary

Last week brought the pain. It was the worst single week for the bond market (if we count MBS) since 2013. Although this week won't break any records, it was a refreshing change of pace, with almost every day seeing decent improvement. Today's gains were the best, but also the most serendipitous. A seemingly insignificant headline about Chinese delegates cancelling a trade meeting with Montana's agricultural bureau sent shockwaves through both sides of the market. Those headlines were flanked by newswires with market-friendly Fed speakers (Clarida and Bullard). Finally, the 3pm CME close brought a friendly imbalance (in our favor) in tradeflows surrounding the monthly options expirations deadline. This is the sort of thing that can help us or hurt us. Today it helped. Next week…(read more)

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MBS RECAP: Friendly Confluence of Events Helps Bond Markets Repair Some Damage
MBS RECAP: Friendly Confluence of Events Helps Bond Markets Repair Some Damage

Homeowner Equity Reaches All-Time High in Q2; Rates End Week Near Best Levels

Total home equity, not surprisingly, increased again in the second quarter of the year. CoreLogic’s quarterly Homeowner Equity Insights report, which looks only at properties with one or more mortgages, puts the aggregate increase at $428 billion year-over-year, a 4.8 percent gain. The company says that 63 percent of residential properties have a mortgage. “Home values have continued to rise in most parts of the country this year and we are seeing the benefit in higher home equity levels. The western half of the U.S. has experienced particularly strong gains in home equity recently,” according to CoreLogic CEO and President Frank Martell. In July 2019, South Dakota and Connecticut were the only two states to post annual home price declines. These losses mirror the states’ home equity performances
Homeowner Equity Reaches All-Time High in Q2; Rates End Week Near Best Levels
Homeowner Equity Reaches All-Time High in Q2; Rates End Week Near Best Levels

Fed's Powell has mastered art of saying nothing: WSJ's Greg Ip

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Greg Ip, the Wall Street Journal, join 'The Exchange' to discuss Jerome Powell's comments on the Fed's decision to cut interest rates.

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Fed's Powell has mastered art of saying nothing: WSJ's Greg Ip
Fed's Powell has mastered art of saying nothing: WSJ's Greg Ip

Fed to conduct daily repo operations through Oct. 10

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CNBC's Steve Liesman reports on new repo operations from the Fed and comments from the Fed's Eric Rosengren.

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Fed to conduct daily repo operations through Oct. 10
Fed to conduct daily repo operations through Oct. 10

Homeowner Equity Reaches All-Time High in Q2

Posted To: MND NewsWire

Total home equity, not surprisingly, increased again in the second quarter of the year. CoreLogic’s quarterly Homeowner Equity Insights report, which looks only at properties with one or more mortgages, puts the aggregate increase at $428 billion year-over-year, a 4.8 percent gain. The company says that 63 percent of residential properties have a mortgage. “Home values have continued to rise in most parts of the country this year and we are seeing the benefit in higher home equity levels. The western half of the U.S. has experienced particularly strong gains in home equity recently,” according to CoreLogic CEO and President Frank Martell. In July 2019, South Dakota and Connecticut were the only two states to post annual home price declines. These losses mirror the states’ home equity performances…(read more)

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Homeowner Equity Reaches All-Time High in Q2
Homeowner Equity Reaches All-Time High in Q2

MBS Day Ahead: Bonds Just Hoping for an Orderly Escape; Bigger Decisions on Hold

Posted To: MBS Commentary

In the day just passed, bonds trading was exceptionally calm in the wake of Wednesday's Fed day. As I mentioned in the recap , it was one of the least volatile moves relative to expectations of any Fed day reaction I can remember. The consolidative vibes suggest either indecision or apathy, post-Fed. The clear takeaway from a strategy standpoint is that bonds really and truly are going to be heavily data-dependent in the coming weeks, barring some technical clue that gives away traders' underlying predispositions. In the day ahead, all we can do is keep an eye out for those technical clues and simply bide our time as the bond market does the same. The Fed will be more than willing to cut rates all the way to zero if the econ data justifies the move, but they aren't going to do it…(read more)

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MBS Day Ahead: Bonds Just Hoping for an Orderly Escape; Bigger Decisions on Hold
MBS Day Ahead: Bonds Just Hoping for an Orderly Escape; Bigger Decisions on Hold

The Fed is trying to prevent a slowdown, CIO says

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Omar Aguilar, chief investment officer of equities and multi-asset strategies at Charles Schwab Investment Management, Paul Hickey, founder of Bespoke Investment Group, and CNBC markets commentator Mike Santoli, join "Squawk Box" to discuss what they are watching in the markets.

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The Fed is trying to prevent a slowdown, CIO says
The Fed is trying to prevent a slowdown, CIO says

Fraud, Broker, and LO Products; Correspondent/Wholesale Changes

Posted To: Pipeline Press

A mile is 5,280 feet. And Central Park Tower on West 57th St. in Manhattan now stands at 1,550 feet, about a third of a mile. I mention this because it is now the tallest residential building in the world , and if you’d like to pony up $6.9 million for a unit, now’s your chance. When the builder starts cutting prices, we’ll know that we’re in a slowdown, but until then the press can focus on overseas economies slowing, trade concerns, and persistently weak inflation in the U.S. possibly leading to a U.S. slowdown. Many believe that at some point all this talk of a slowdown or recession in this country will become a self-fulfilling prophecy . It is interesting that President Trump wants the Fed to cut rates to zero, the sign of a stumbling economy which is not what we…(read more)

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Fraud, Broker, and LO Products; Correspondent/Wholesale Changes
Fraud, Broker, and LO Products; Correspondent/Wholesale Changes

Rates Move Lower for Eighth Consecutive Month, Driving Refis

Posted To: MND NewsWire

Thirty-year mortgage loans closed in August carried an average interest rate of 4.07 percent according to Ellie Mae’s Origination Insight Report. Rates were down for the eighth consecutive month , easing back from an average of 4.18 percent in July. Ellie Mae said the month-over-month decline in rates continues to drive up the share of originations that are for refinancing. They accounted for 43 percent of all loans closed during the month compared to 38 percent in July. That increase drove purchase originations under a 60 percent share for the first time this year. The refi share popped up by 3 percentage points for all three major loan types. “Interest rates continue to decline and we’re seeing homeowners capitalize on the refinance opportunity throughout the month of August,” said Jonathan…(read more)

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Rates Move Lower for Eighth Consecutive Month, Driving Refis
Rates Move Lower for Eighth Consecutive Month, Driving Refis

More investors are doubting another rate cut in 2019, strategist says

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Simeon Hyman, global investment strategist at ProShares Advisors, Gabriela Santos, global markets strategist at J.P. Morgan Funds, and Paul Hickey, founder of Bespoke Investment Group, join "Squawk Box" to discuss what they are watching in the markets following the Fed's decision to cut rates by a quarter basis point.

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More investors are doubting another rate cut in 2019, strategist says
More investors are doubting another rate cut in 2019, strategist says