Fruzetti: The Fed is doing a lot of talking, and not walking

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HighTower's Patrick Fruzetti says if the Fed is going to raise U.S. GDP, it has to keep monetizing debt through the continued purchases of Treasuries.

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Fruzetti: The Fed is doing a lot of talking, and not walking
Fruzetti: The Fed is doing a lot of talking, and not walking

Inflation Holds Key to Fannie Mae's New Forecast; Rates are Actually Higher Today

Fannie Mae’s economists have revised a lot of their forecast from last month as new data has come in. The outlook for the 2021 GDP has been revised modestly to 7.1 percent from 7.0 percent on a Q4-over-Q4 basis. The revision was due to data indicating stronger second quarter growth in personal consumption which they expect was driven heavily by inventory restocking and will decelerate significantly in the second half of the year. They also moved the 2022 growth forecast down one-tenth to 2.7 percent and revised upward their inflation forecast. As did the Federal Reserve on Wednesday, Fannie Mae says much of the recent uptick in inflation was transitory , but price pressures are likely to last into 2022. Lagging effects stemming from recent rapid house price growth will generate upwrd pressure
Inflation Holds Key to Fannie Mae's New Forecast; Rates are Actually Higher Today
Inflation Holds Key to Fannie Mae's New Forecast; Rates are Actually Higher Today

Inflation Holds Key to Fannie Mae's New Forecast

Posted To: MND NewsWire

Fannie Mae’s economists have revised a lot of their forecast from last month as new data has come in. The outlook for the 2021 GDP has been revised modestly to 7.1 percent from 7.0 percent on a Q4-over-Q4 basis. The revision was due to data indicating stronger second quarter growth in personal consumption which they expect was driven heavily by inventory restocking and will decelerate significantly in the second half of the year. They also moved the 2022 growth forecast down one-tenth to 2.7 percent and revised upward their inflation forecast. As did the Federal Reserve on Wednesday, Fannie Mae says much of the recent uptick in inflation was transitory , but price pressures are likely to last into 2022. Lagging effects stemming from recent rapid house price growth will generate upwrd pressure…(read more)

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Inflation Holds Key to Fannie Mae's New Forecast
Inflation Holds Key to Fannie Mae's New Forecast

MBS RECAP: Strong Showing For Longer-Dated Bonds

Posted To: MBS Commentary

Strong Showing For Longer-Dated Bonds With the Fed's dot plot in focus yesterday, the associated drama was heavily weighted toward the short end of the yield curve. Relative to recent stability, 2yr Treasuries got destroyed while 30yr Treasuries were barely touched. MBS lean a bit shorter in duration than 10yr benchmarks, so it's no surprise to see them underperform today. If we let them compete with 5yr Treasuries, different story (i.e. don't read too much into "MBS underperformance" when the yield curve is making such big moves). No data tomorrow and limited data next week. The week after that brings another jobs report, and thus another chance to see the next big flash of volatility. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Jobless Claims 412k vs 359k f'cast…(read more)

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MBS RECAP: Strong Showing For Longer-Dated Bonds
MBS RECAP: Strong Showing For Longer-Dated Bonds

Mortgage rates jump following Fed announcement

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CNBC's Diana Olick reports on mortgage rates, which jumped after yesterday's Fed announcement.

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Mortgage rates jump following Fed announcement
Mortgage rates jump following Fed announcement

No, Mortgage Rates Aren't Lower Today!

Posted To: Mortgage Rate Watch

It’s Thursday on a volatile week for the bond market and thus time, once again, to play our favorite game: “no, rates didn’t really do that.” Sometimes, a majority of mortgage rate headlines say rates went higher when they’re really lower. In today’s case, rates are much higher than they were yesterday morning despite multiple headlines suggesting the opposite. Who’s right? Who’s wrong? And Why? First off, timing matters . Yesterday morning’s rates were much lower than yesterday afternoon’s rates. This morning’s rates were higher still. Finally, this afternoon has brought some relief, but not enough to get the average lender back to yesterday morning’s levels. In all cases, this week’s rates are definitely not lower than last week’s. The headlines that disagree with that assertion are invariably…(read more)

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No, Mortgage Rates Aren't Lower Today!
No, Mortgage Rates Aren't Lower Today!

Market thinks the Fed is on hold: Chris Toomey on Fed raising rates

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Chris Toomey, Morgan Stanley Private Wealth Management, joins 'Halftime Report' to discuss his thoughts on the markets reaction to the Federal Reserve's adjusted interest rate projections.

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Market thinks the Fed is on hold: Chris Toomey on Fed raising rates
Market thinks the Fed is on hold: Chris Toomey on Fed raising rates

10-year yield falls below yesterday's post-Fed meeting close

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CNBC's Rick Santelli calls into 'The Exchange' to discuss the 10-year yield returning to levels before the Federal Reserve meeting yesterday.

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10-year yield falls below yesterday's post-Fed meeting close
10-year yield falls below yesterday's post-Fed meeting close

MLO Jobs; Secondary Marketing, SaaS, Purchase Tools; Fannie Addresses NOO and 2nd Home Policy

Posted To: Pipeline Press

Fortunately for much of the rest of the United States, lumber prices have been falling since May, hopefully cutting the money required for new construction. Criminals often go to where the money is, and lenders must implement steps to stop wire fraud and to give their client comfort that large sums of money, often their life’s savings, are in good hands. The Securities and Exchange Commission (SEC) announced settled charges against First American Financial Corp. , one of the largest mortgage title and settlement services companies in the U.S., alleging cybersecurity breaches when the company exposed sensitive personal information of its customers and did not follow proper incident response when informing customers about the leak. Be careful out there! ( Today’s audio version of…(read more)

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MLO Jobs; Secondary Marketing, SaaS, Purchase Tools; Fannie Addresses NOO and 2nd Home Policy
MLO Jobs; Secondary Marketing, SaaS, Purchase Tools; Fannie Addresses NOO and 2nd Home Policy

MBS Day Ahead: Bonds Building a Case For Resilience

Posted To: MBS Commentary

After Wednesday's Fed-inspired rout, bond yields have done a great job finding support in the 1.56-1.59% area overnight amid high volume trading. All other things being equal, and purely from a technical standpoint, this speaks to a good case for resilience. The 1.56-1.59 area has generally held up as the lower end of 2021's "intermission" range. Yields have moved below that on occasion, but not for long–not until last week anyway. By treating that same area as a sort of ceiling in the overnight session, bonds are telling us there's a chance that it will evolve into a friendly inflection point that offers support in the near term. "Near term" is a cop-out used by analysts and economists when they don't want to commit to too specific a time frame. I could…(read more)

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MBS Day Ahead: Bonds Building a Case For Resilience
MBS Day Ahead: Bonds Building a Case For Resilience