Digital, Reno Products; Originator Survey; FHA Condo Update

Posted To: Pipeline Press

Plenty of economists watch builder activity and mood swings as early indicators of future economic health. Builder confidence in the single-family 55+ housing market continued in positive territory in the second quarter of 2018, according to the HMI . We’ve been hearing about skilled labor shortages, lack of buildable land, raw material price volatility, and permit & regulatory costs for years, but aging Baby Boomers are downsizing, many into condominiums. The 55+ multifamily condo HMI is the second-highest reading since the inception of the index in 2008. I bring this up because of the FHA condo announcement yesterday, spelled out below and good news for many. Lender Products and Services OpenClose ® has added industry technology veteran Allen Pollack as the company’s new…(read more)

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Digital, Reno Products; Originator Survey; FHA Condo Update
Digital, Reno Products; Originator Survey; FHA Condo Update

MBS Day Ahead: Active Day For Data

Posted To: MBS Commentary

In the day just passed, bond markets primarily reacted to overseas economic data with many of the reports in Europe coming in flat to weaker. Combined with the weakest Chinese manufacturing data in years, it was enough to push bonds through recent resistance levels and to new low yields since 2016. The domestic hours were especially influenced by a massive drop in equities. In the day ahead, we'll get the biggest slate of domestic economic data of the week, led by Retail Dales and Philly Fed at 8:30am. The consumer spending sector is arguably the last bastion of economic health in the US along with stable employment numbers. Any cracks in Retail Sales would thus be a big deal whereas an unexpected surge might not do too much to hurt bonds given the laundry list of other concerns. That's…(read more)

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MBS Day Ahead: Active Day For Data
MBS Day Ahead: Active Day For Data

RBC's Cassidy on what makes this yield curve inversion different and more unusual than in the past

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Gerard Cassidy of RBC Capital Markets discusses the steep decline in bank stocks, and whether that signals more weakness ahead for the sector.

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RBC's Cassidy on what makes this yield curve inversion different and more unusual than in the past
RBC's Cassidy on what makes this yield curve inversion different and more unusual than in the past

New FHA Rule Will Ease Condo Approval Process

Posted To: MND NewsWire

The long-waited Federal Housing Administration (FHA) rule regulating condominium lending was finalized Wednesday afternoon. The Department of Housing and Urban Development (HUD), the parent agency of FHA, published the final regulation and the policy implementation guidance establishing a new condominium approval process. As a way of background, under existing rules, to obtain an FHA mortgage a borrower must not only satisfy the lender and the FHA that he or she is a qualified buyer but must purchase a unit that is itself qualified for financing. According to the National Association of Realtors®, FHA has put its stamp of approval on many complexes, but given the universe, not nearly enough. Of the more than 150,000 condominium projects in the U.S., only 6.5 percent are approved to participate…(read more)

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New FHA Rule Will Ease Condo Approval Process
New FHA Rule Will Ease Condo Approval Process

Refi Spree Continues with Rates at Near 3-Year Lows, But Mortgage Market is a Mess; Global Economy Doomed?

The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage application volume, rose 21.7 percent on a seasonally adjusted basis during the week ended August 9. MBA attributed the substantial decline in interest rates at the beginning of the week for the surge of applications which were concentrated on mortgage refinancing. The Composite Index rose 20 percent before seasonal adjustment. Purchase mortgage applications were only slightly affected by the tsunami; that index rose only 1.9 percent from the previous week on an unadjusted basis and 1 percent before adjustment. The unadjusted index was 12 percent higher than during the same week in 2018. The Refinance Index however was up 37 percent from the previous week to its highest level since July 2016 and was
Refi Spree Continues with Rates at Near 3-Year Lows, But Mortgage Market is a Mess; Global Economy Doomed?
Refi Spree Continues with Rates at Near 3-Year Lows, But Mortgage Market is a Mess; Global Economy Doomed?

MBS RECAP: Have You Heard The One About Mortgage Underperformance?!

Posted To: MBS Commentary

Living under a rock has a lot of advantages: generally low housing cost, durability, no roof maintenance, and if you're strong enough, you have something to throw at anyone who approaches your castle in a threatening way. The disadvantages may be slightly more numerous, but I can only really think of one right now: the lack of access to timely market-related news! All that nonsense to say: unless you've been living under a rock, you've probably heard or seen that mortgage rates and/or MBS are doing an absolutely lousy job of keeping pace with the move in the Treasury market. Even from under said rock, you could still probably hear other people whining about this dynamic, so you really have no excuse not to know. Despite our knowledge of this general phenomenon, reality is still…(read more)

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MBS RECAP: Have You Heard The One About Mortgage Underperformance?!
MBS RECAP: Have You Heard The One About Mortgage Underperformance?!

Mortgage Rates Are a Mess!

Posted To: Mortgage Rate Watch

Mortgage rates were unchanged for many lenders today which is utterly and completely shocking given the other market developments that tend to coincide with rates moving lower. Specifically, stocks tanked and 10yr Treasury yields plummeted to the lowest levels since September 2016. For anyone under the impression that 10yr yields dictate the direction of mortgage rates without exception, it’s high time to reassess that worldview. The bottom line is that rates are doing an absolutely terrible job of keeping pace with the rally in the broader bond market. The ” Temporary Note on Mortgage Rate Inconsistency ” below will be informative in that regard. With that in mind, many lenders were unchanged today for slightly less complicated reasons. Sure, underlying mortgage bonds didn’t improve as quickly…(read more)

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Mortgage Rates Are a Mess!
Mortgage Rates Are a Mess!

Moody's Analytics' Zandi: Housing market 'treading water', here's why

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The supply of newly built homes for sale dropped for the first time in six years. Mark Zandi, Moody's chief economist, and CNBC's Diana Olick join 'The Exchange' to discuss how housing is doing during the sell-off.

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Moody's Analytics' Zandi: Housing market 'treading water', here's why
Moody's Analytics' Zandi: Housing market 'treading water', here's why

Trade deal and Fed puts on the market expired a few weeks ago: Morgan Stanley's Mike Wilson

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Mike Wilson, Morgan Stanley CIO and chief U.S. equity strategist, and Liz Young, BNY Mellon director of market strategy, join 'Fast Money Halftime Report' at the NYSE to discuss the state of the markets after the yield curve inverted.

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Trade deal and Fed puts on the market expired a few weeks ago: Morgan Stanley's Mike Wilson
Trade deal and Fed puts on the market expired a few weeks ago: Morgan Stanley's Mike Wilson

Recession hinges on the labor market: Morgan Stanley's Mike Wilson

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Mike Wilson, Morgan Stanley CIO and chief U.S. equity strategist, joins 'Fast Money Halftime Report' at the NYSE to discuss the state of the markets after stocks fell on recession fears.

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Recession hinges on the labor market: Morgan Stanley's Mike Wilson
Recession hinges on the labor market: Morgan Stanley's Mike Wilson