Rates Holding Ground, But Under Pressure; Will New FHFA Head Follow his Instincts or Bow to Reality?

“The most important question in housing policy heading into the new year has nothing to do with interest rates, housing supply, or home sales,” Urban Institute (UI) non-resident fellow Jim Parrott says. “It’s what kind of director of the Federal Housing Finance Agency (FHFA) Mark Calabria will be .” Calabria has been named to replace Melvin Watt as director of the agency that regulates the Federal home Loan Banks and the GSEs Fannie Mae and Freddie Mac. FHFA has also been conservator of the GSEs since 2008. Parrott says the agency has “an enormous hand in who in this country can get a mortgage and on what terms .” He adds, “And in Mark Calabria, the Trump administration has nominated one of Fannie and Freddie’s greatest skeptics, raising the prospect that they, and the market that depends on
Rates Holding Ground, But Under Pressure; Will New FHFA Head Follow his Instincts or Bow to Reality?
Rates Holding Ground, But Under Pressure; Will New FHFA Head Follow his Instincts or Bow to Reality?

MBS RECAP: Trade Headlines Provide Sneak Peak for Bond Market Vulnerability

Posted To: MBS Commentary

The Wall St Journal ran a story this afternoon suggesting Treasury Secretary Mnuchin was pushing for a compromise deal to ease Tariffs on China in order to grease the skids for trade talks. As a result, stocks and bonds lost their cool –relatively. Case in point, in the 30 minutes following the headline, nearly 350k 10yr Treasury futures contracts traded. To put that in perspective, the 30 minutes following the January 4th jobs report saw just over 250k. To be fair to the jobs report, it created lasting volume throughout the day whereas the trade-related headlines made for a much more condensed dose. Even so, the reaction speaks to importance of trade-related updates as the US works on hammering out a deal with China. We could also argue that it speaks the deprivation that markets have been…(read more)

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MBS RECAP: Trade Headlines Provide Sneak Peak for Bond Market Vulnerability
MBS RECAP: Trade Headlines Provide Sneak Peak for Bond Market Vulnerability

Mortgage Rates Holding Ground But Volatility Could Increase

Posted To: Mortgage Rate Watch

Mortgage rates were technically steady today. In fact, as of this writing, most lenders are offering slightly better terms compared to yesterday, but only by barely-detectable amounts. The afternoon brought volatility in financial markets owing to trade-related headline. That volatility isn’t moving in a good direction for mortgage rates at the moment. The takeaway is that, all other things being equal, lenders will be offering slightly weaker terms tomorrow morning, assuming they don’t see quite enough weakness to adjust today’s offerings with only a few hours left in the day. Combine the volatility risk with the fact that rates are still very close to their lowest levels since last April, and this is still a compelling opportunity for potential homebuyers or owners interested in refinancing…(read more)

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Mortgage Rates Holding Ground But Volatility Could Increase
Mortgage Rates Holding Ground But Volatility Could Increase

Treasury official: No recommendations made on tariffs

[View:http://video.cnbc.com/gallery/?video=7000060355&__source=mnd|news|video|&par=mnd]

CNBC's Eamon Javers reports from the White House on his exchange with Treasury Secretary Steve Mnuchin after Dow Jones reported the U.S. is weighing lifting tariffs on China to hasten a trade deal.

…(read more)

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Treasury official: No recommendations made on tariffs
Treasury official: No recommendations made on tariffs

Huge increase in mortgage refinancing, says BB&T CEO

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CNBC's "Power Lunch" team is joined by BB&T CEO Kelly King to discuss the health of banks, the mortgage business, and the state of the consumer.

…(read more)

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Huge increase in mortgage refinancing, says BB&T CEO
Huge increase in mortgage refinancing, says BB&T CEO

Here's how economists are getting data during the shutdown

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Omair Sharif, Societe Generale senior U.S. economist, and CNBC's Steve Liesman joins 'The Exchange' to discuss why the jobless claims numbers might not add up and his story on shutdown.

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Here's how economists are getting data during the shutdown
Here's how economists are getting data during the shutdown

Subservicer, Non-Agency Products; World Debt Increasing; Primer on "Duration" and Mortgage Pricing

Posted To: Pipeline Press

Time has a way of slipping by. For example, I’ve really been meaning to transfer a bunch of Lotus 1-2-3 and Quattro Pro spreadsheets I have off of some floppy disks and onto my laptop but never seem to get around to it. Speaking of time passing, Moody’s send out a warning that if the partial US government shutdown (PUGS) continues it could create problems for the U.S. bond market. Entities that depend upon federal money for revenues or paying debts could experience “liquidity strains.” As we know the lack of liquidity will take a company, or person, down to their knees faster than anything. Yet nothing is certain but death and taxes, and the IRS plans to recall thousands of workers now on furlough because of the PUGS. Lender Products and Services Wrapping up a record-breaking 2018…(read more)

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Subservicer, Non-Agency Products; World Debt Increasing; Primer on "Duration" and Mortgage Pricing
Subservicer, Non-Agency Products; World Debt Increasing; Primer on "Duration" and Mortgage Pricing

Initial jobless claims down 3,000 to 213,000

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Jim Iuorio of TJM Institutional Services breaks down the latest initial jobless claims and numbers from the Philly Fed index. CNBC's Steve Liesman joins to break down the numbers.

…(read more)

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Initial jobless claims down 3,000 to 213,000
Initial jobless claims down 3,000 to 213,000

MBS Day Ahead: There Are Only So Many Ways To Say It

Posted To: MBS Commentary

Unless you've missed the past few days of commentary, you've heard me say something about the sideways uncertainty in markets as investors wait for a government shutdown resolution. There are only so many ways to say it. So I'll let someone else say it this morning. The following is from the head of US Rates Strategy at BMO Capital Markets, Ian Lyngen: "Treasuries are in a classic holding pattern as we await further clarity on a variety of fronts. The government shutdown remains front and center, if for no other reason than the dearth of economic data the closure has created and mounting concerns the stalemate will impact the real economy." It can't be said with much more clarity. Even if we want to argue the shutdown, itself, isn't a major market mover, it's…(read more)

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MBS Day Ahead: There Are Only So Many Ways To Say It
MBS Day Ahead: There Are Only So Many Ways To Say It

Housing pulse check

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Diana Olick and Mark Fleming of First American dig in on the state of the real estate market.

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Housing pulse check
Housing pulse check