Central banks are in a lose-lose-lose situation, says Allianz's Mohamed El-Erian

(Please visit the site to view this media)

Mohamed El-Erian, chief economic advisor at Allianz, joins "Squawk Box" to discuss what he's watching in the markets and the Fed's intervention during the coronavirus crisis.

…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Central banks are in a lose-lose-lose situation, says Allianz's Mohamed El-Erian
Central banks are in a lose-lose-lose situation, says Allianz's Mohamed El-Erian

LO Jobs; CRM, Broker, eClosing Products; Events; Servicing Tactics Continue to Impact Market

Posted To: Pipeline Press

Curfews and civil unrest have replaced COVID in the news. Meanwhile, investors are watching record low debt issuance yields from companies like Amazon and Costco (1.50-1.62 percent 10-year notes, lowering their cost of capital dramatically). Low rates for a mortgage these days are certainly more common than finding a jumbo investor offering a 20 percent down product. And those rates could be with us for a long time, impacting LO business and servicing values. Many believe that the Federal Reserve will basically repeat its “postcrisis playbook” from ten years ago and leave the overnight Fed Funds rate near zero for several years. A spike in inflation has not been an issue for decades. (In fact, consumer price increases have been very steady .) What may not be steady is individual…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


LO Jobs; CRM, Broker, eClosing Products; Events; Servicing Tactics Continue to Impact Market
LO Jobs; CRM, Broker, eClosing Products; Events; Servicing Tactics Continue to Impact Market

April Construction Spending Still Besting 2019 Numbers

Posted To: MND NewsWire

Overall spending on construction fell in April, down 2.9 percent to a seasonally adjusted annual rate of $1.346 trillion from 1.387 trillion. This still left the rate 3.0 percent higher than it was in April 2019. On a non-adjusted basis, spending was $110.492 billion compared to $107.758 billion in March and 106,786 the previous April. Thus far in 2020, spending has totaled $412.465 billion, a 7.1 percent increase from the year-to-date (YTD) spending in 2019. Privately funded construction was at an annual rate of $1.004 trillion, down 3.0 percent from the $1.036 trillion rate in March, but still up 3.8 percent from the expenditures a year earlier. On an unadjusted basis spending was a tad higher than in March, $83.865 billion compared to $83.654 billion, At $318.110 billion, however, spending…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


April Construction Spending Still Besting 2019 Numbers
April Construction Spending Still Besting 2019 Numbers

Taylor Morrison CEO: Home sales picked up significantly in May, exceeding our expectations

(Please visit the site to view this media)

Sheryl Palmer, CEO of homebuilder Taylor Morrison, says net sales rose 17% in May, and weekly traffic in the last week of the month was three times higher than in early April during the height of the COVID-19 pandemic and lock-downs.

…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Taylor Morrison CEO: Home sales picked up significantly in May, exceeding our expectations
Taylor Morrison CEO: Home sales picked up significantly in May, exceeding our expectations

Mortgage Market Deep Dive; Builders Buoy Sales; Rates Start High, Finish Low

The Urban Institute (UI) releases a regular report, Housing Finance at a Glance , a “chartbook” loaded with charts and commentary on mortgage activity . Much of the May chartbook’s material, is retrospective, reaching back as far as Q4 2019 where there is a time lag in data collection. Much of it, residential construction data, home price indices, negative equity reports, etc., has been covered by MND from original sources, but we have cherry-picked a few items that may have otherwise escaped your and our notice. The total value of the housing market, as outlined in the Federal Reserve’s Flow of Fund Report has gradually increased since 2012, driven primarily by growing home equity. The Q4 2019 numbers show that while total home equity was steady this during that quarter at $19.7 trillion,
Mortgage Market Deep Dive; Builders Buoy Sales; Rates Start High, Finish Low
Mortgage Market Deep Dive; Builders Buoy Sales; Rates Start High, Finish Low

Mortgage Rates Start Higher But Finish Lower

Posted To: Mortgage Rate Watch

Mortgage rates pulled off a repeat performance of last Friday’s intraday drama. The average lender began the day in higher territory as bond markets were weaker in the morning. Bonds recovered nicely and mortgage lenders were more than willing to adjust rate sheets accordingly. After being in slightly weaker shape compared to Friday’s latest levels, the average lender was noticeably better than Friday by the end of the day. What does “noticeably better” look like in objective terms? Depending on your existing rate and scenario, it might not look like much. The industry is pecking away at an all-time low rate range. Progress at these levels will continue to come in bits and pieces. Most prospective borrowers would see this change in the form of lower upfront costs to the tune of 0.1-0.2% of…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Mortgage Rates Start Higher But Finish Lower
Mortgage Rates Start Higher But Finish Lower

MBS RECAP: Timing of Today's Volatility Could Create Some Opportunity

Posted To: MBS Commentary

There’s no way to predict the future for rates and markets, but there are occasionally tactical opportunities. Today’s version involves lenders being forced to price rate sheets when MBS had just swung down to the lowest levels of the day. Prices have since bounced. If they were to hold here, lenders have 2 choices: offer improved pricing this afternoon or tomorrow morning. Econ Data / Events 11:30-11:50 AM (ET) – Fed 30yr UMBS Buying ISM Manufacturing: 43.1 vs 43.6 f’cast, 41.5 prev Market Movement Recap 10:06 AM: Flat at roughly unchanged levels out of the gate, then MBS tanked (moderately) and Treasuries tanked modestly. A portion of that weakness has been recovered in MBS, but Treasuries remain near higher yields. 12:31 PM: Treasuries jumping in with some gains of their own now at the end…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


MBS RECAP: Timing of Today's Volatility Could Create Some Opportunity
MBS RECAP: Timing of Today's Volatility Could Create Some Opportunity

Builder Incentives Kept April Home Sales Strong

Posted To: MND NewsWire

As was reported last week, new home sales in April were much, much better than expected. There may or may not be a cause and effect going on here, but two recent posts in the National Association of Home Builders’ (NAHB’s) Eye on Housing blog indicate that builders are at least trying to preserve some market momentum. While builder confidence cratered in April and housing starts declined, Rose Quint reports that there is anecdotal evidence that builders were lowering the prices of newly constructed homes in April and that more than half report making sales accommodations in May. The latest NAHB/Wells Fargo Housing Market Index (HMI) survey shows that about 22 percent of builders cut home prices in April 2020 in order to bolster sales and/or limit cancellations. Regionally, builders in the South…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Builder Incentives Kept April Home Sales Strong
Builder Incentives Kept April Home Sales Strong

State and local budgets in peril as they manage pandemic's economic fallout

(Please visit the site to view this media)

CNBC's Ylan Mui reports on the latest measures being taken by state and local leaders to manage the economic fallout of coronavirus.

…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


State and local budgets in peril as they manage pandemic's economic fallout
State and local budgets in peril as they manage pandemic's economic fallout

UI Takes a Deep Dive Into May's Mortgage Market

Posted To: MND NewsWire

The Urban Institute (UI) releases a regular report, Housing Finance at a Glance , a “chartbook” loaded with charts and commentary on mortgage activity . Much of the May chartbook’s material, is retrospective, reaching back as far as Q4 2019 where there is a time lag in data collection. Much of it, residential construction data, home price indices, negative equity reports, etc., has been covered by MND from original sources, but we have cherry-picked a few items that may have otherwise escaped your and our notice. The total value of the housing market, as outlined in the Federal Reserve’s Flow of Fund Report has gradually increased since 2012, driven primarily by growing home equity. The Q4 2019 numbers show that while total home equity was steady this during that quarter at $19.7 trillion,…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


UI Takes a Deep Dive Into May's Mortgage Market
UI Takes a Deep Dive Into May's Mortgage Market