For Rates, Tomorrow Brings Bigger Risks; Once Thought Inferior, Automated Appraisals Finding Their Place

Mortgage rates were flat for the 4th day in a row today in a sign that investors have largely taken their seats for tomorrow’s big show. The Fed will release its new policy statement at 2pm tomorrow, and while they’re not expected to hike rates this time around, there are other important considerations that could have a big impact on rates. One of the considerations is the fact that March is one of the months where the Fed updates its economic projections. Investors largely tune-in to these for a glimpse at the collective rate hike outlook. This has caused big market movement in the past, but something else could be even more important tomorrow. The Fed has increasingly mentioned the impending end of its balance sheet runoff , which refers to its policy of NOT buying bonds with the money it
For Rates, Tomorrow Brings Bigger Risks; Once Thought Inferior, Automated Appraisals Finding Their Place
For Rates, Tomorrow Brings Bigger Risks; Once Thought Inferior, Automated Appraisals Finding Their Place

MBS RECAP: Bonds Officially Held January's Range Ahead of March Fed Announcement

Posted To: MBS Commentary

Bonds began the day in weaker territory following overnight headlines suggesting European leaders would be going up to bat for a compromise Brexit deal. "Less bad" economic data in Germany also contributed to European bond market selling. At the start of the domestic session–particularly the 8:20am CME Open–there was a glut of sell trades in the bond market. This resulted in what was, at the time, the biggest volume spike of the day (by far) and a noticeable uptick in yields. Technical levels were first to provide support with 10yr yields bouncing at 2.63%. After that, US/China trade headlines helped take yields to their lowest levels of the domestic session just before 1pm, though the rally proved to be short-lived. Bonds ended the day slightly weaker but close enough to 'unchanged'…(read more)

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MBS RECAP: Bonds Officially Held January's Range Ahead of March Fed Announcement
MBS RECAP: Bonds Officially Held January's Range Ahead of March Fed Announcement

Rates Unchanged for 4th Straight Day. That Should Change Tomorrow

Posted To: Mortgage Rate Watch

Mortgage rates were flat for the 4th day in a row today in a sign that investors have largely taken their seats for tomorrow’s big show. The Fed will release its new policy statement at 2pm tomorrow, and while they’re not expected to hike rates this time around, there are other important considerations that could have a big impact on rates. One of the considerations is the fact that March is one of the months where the Fed updates its economic projections. Investors largely tune-in to these for a glimpse at the collective rate hike outlook. This has caused big market movement in the past, but something else could be even more important tomorrow. The Fed has increasingly mentioned the impending end of its balance sheet runoff , which refers to its policy of NOT buying bonds with the money it…(read more)

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Rates Unchanged for 4th Straight Day. That Should Change Tomorrow
Rates Unchanged for 4th Straight Day. That Should Change Tomorrow

Santelli Exchange: John Taylor on the Fed

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Stanford Professor John Taylor and CNBC's Rick Santelli discuss the Fed's balance sheet, inflation and monetary policy.

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Santelli Exchange: John Taylor on the Fed
Santelli Exchange: John Taylor on the Fed

Cashin: Navigating 'Fed drift'

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CNBC's Bob Pisani and UBS' Art Cashin discuss the morning's market activity.

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Cashin: Navigating 'Fed drift'
Cashin: Navigating 'Fed drift'

Once Considered Inferior, Automated Appraisals Are Helping Stem Default Risk

Posted To: MND NewsWire

Although lacking in popularity, it appears that automated appraisals have obtained the their intended results. Urban Institute (UI) researchers Laurie Goodman and Jun Zhu found the changes have helped to lower default rates. They suggest that, in turn, some lender processes and potentially pricing should be changed as well. The two looked at the characteristics of three broad categories of mortgages: Purchase mortgages, used to buy a home. Rate and term refinance mortgages, used to reduce the interest rate or extend the length of an existing mortgage. Cash-out refinance mortgages, which are obtained when a homeowner wants to tap the equity that has accrued in their home. It has been assumed, based on loan characteristics like loan to value (LTV) ratios, debt-to-income (DTI) ratios and FICO…(read more)

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Once Considered Inferior, Automated Appraisals Are Helping Stem Default Risk
Once Considered Inferior, Automated Appraisals Are Helping Stem Default Risk

Pisani: Stocks tend to rise 24 hours leading up to Fed announcements

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CNBC's Bob Pisani looks ahead at the day's market action.

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Pisani: Stocks tend to rise 24 hours leading up to Fed announcements
Pisani: Stocks tend to rise 24 hours leading up to Fed announcements

January factory orders hit estimates at 0.1%

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CNBC's Rick Santelli reports on final factory orders data for the month of January.

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January factory orders hit estimates at 0.1%
January factory orders hit estimates at 0.1%

MBS Day Ahead: Looks Like We Made It

Posted To: MBS Commentary

Rates staged an impressive rally in November and December before bottoming out on the first trading day of 2019. The bounce was fairly abrupt at the time and it roughly coincided with 2017's highs. It was as if the bond market was saying those days are behind us and we won't be going back any time soon. After the January 4th bounce, there was some concern that we'd zoom right back up to previous levels from the 2018 range. But support kicked in by the 18th at an interesting level (2.80%). Why interesting? Because it marked the boundary of the range that was intact for most of 2018, and remember, the bond rally that ended 2 weeks prior bounced right at the boundary for the 2017 range. Long story short , bonds were beginning to carve out a new range in no-mans-land, in between the…(read more)

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MBS Day Ahead: Looks Like We Made It
MBS Day Ahead: Looks Like We Made It

The Fed always has trouble dealing with markets, economist says

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Robert Brusca, chief economist at Fact & Opinion Economics, and Stephen Stanley, chief economist at Amherst Pierpont Securities, join "Squawk Box" ahead of the Fed policy meeting to discuss what they expect from the central bank.

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The Fed always has trouble dealing with markets, economist says
The Fed always has trouble dealing with markets, economist says