Rates at 2 Week Lows; Pending Sales Reflect Downbeat Buyers; Lender/Realtor Connections

Mortgage rates moved lower today following back-to-back afternoons of improvements in underlying bond markets. Yesterday afternoon was only slightly stronger. It didn’t result in many lenders offering mid-day improvements in rate sheets. Today, however, multiple lenders put out positive reprices after a well-received Treasury auction indicated strong investor demand in the bond market (higher demand for bonds = lower rates). The average lender is back to their best levels since December 14th . Whereas 4.375% had easily been the most prevalent conventional 30yr fixed quote for top tier scenarios, 4.25% is at least as common today. All that having been said, rates were already fairly close to that tipping point. The range has been calm and narrow over the past 2 weeks. Today’s move stands out
Rates at 2 Week Lows; Pending Sales Reflect Downbeat Buyers; Lender/Realtor Connections
Rates at 2 Week Lows; Pending Sales Reflect Downbeat Buyers; Lender/Realtor Connections

MBS RECAP: Exceptionally Strong Auction Sparks Moderate Rally For Bonds

Posted To: MBS Commentary

Today was all about the afternoon's 5yr Treasury note auction, which garnered the best demand in more than 2 years and the highest percentage of indirect bidders (which generally indicates foreign demand) ever! 10yr yields were already slightly lower on the day, but they dropped another 5bps in short order. Fannie 3.5s were already up an eighth of a point on the day, but added another quarter point after the auction. It was definitely the strongest move of this late-December bond market malaise. That "late December" context is also an asterisk for the rally. In the big picture, today's volume was quite light and the size of the move, only slightly above average. Moreover, 10yr yields continue to operate above 2.50%. Until we see a big break lower (at least below the 2.42/2…(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: Exceptionally Strong Auction Sparks Moderate Rally For Bonds
MBS RECAP: Exceptionally Strong Auction Sparks Moderate Rally For Bonds

The best and worst celebrity neighbors, according to Zillow

[View:http://video.cnbc.com/gallery/?video=3000579572&__source=mnd|news|video|&par=mnd]

Zillow announces the people's choice for the absolute worst celebrity neighbor.

…(read more)

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


The best and worst celebrity neighbors, according to Zillow
The best and worst celebrity neighbors, according to Zillow

House flipping returns in force

[View:http://video.cnbc.com/gallery/?video=3000579528&__source=mnd|news|video|&par=mnd]

Daren Blomquist, RealtyTrac vice president, discusses the return of house flipping, as the market for loans is expected to reach about $48 billion in sales volume next year.

…(read more)

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


House flipping returns in force
House flipping returns in force

Mortgage Rates Lowest in 2 Weeks After Treasury Auction

Posted To: Mortgage Rate Watch

Mortgage rates moved lower today following back-to-back afternoons of improvements in underlying bond markets. Yesterday afternoon was only slightly stronger. It didn’t result in many lenders offering mid-day improvements in rate sheets. Today, however, multiple lenders put out positive reprices after a well-received Treasury auction indicated strong investor demand in the bond market (higher demand for bonds = lower rates). The average lender is back to their best levels since December 14th . Whereas 4.375% had easily been the most prevalent conventional 30yr fixed quote for top tier scenarios, 4.25% is at least as common today. All that having been said, rates were already fairly close to that tipping point. The range has been calm and narrow over the past 2 weeks. Today’s move stands out…(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 Lowest in 2 Weeks After Treasury Auction
Mortgage Rates Lowest in 2 Weeks After Treasury Auction

Cashin: Thin markets and light trading

[View:http://video.cnbc.com/gallery/?video=3000579437&__source=mnd|news|video|&par=mnd]

CNBC's Bob Pisani and Art Cashin of UBS discuss the current sentiment in the markets.

…(read more)

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


Cashin: Thin markets and light trading
Cashin: Thin markets and light trading

Pending Home Sales Reflect "Dispirited" Buyers

Posted To: MND NewsWire

Pending sales, which were widely expected to make a good showing in November, pulled back sharply instead. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts for existing home purchases, declined 2.5 percent to 107.3 in November from 110.0 in October. NAR said “the brisk upswing in mortgage rates and not enough inventory dispirited some would-be buyers.” The decrease brought the PHSI to its lowest level since January of this year and it is now 0.4 percent below the index last November which stood at 107.7. Analysts polled by Econoday had been upbeat about the November outlook. The consensus was for an increase of 0.5 percent with some analysts predicting as much as a 2.0 percent gain. Lawrence Yun, NAR chief…(read more)

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


Pending Home Sales Reflect "Dispirited" Buyers
Pending Home Sales Reflect "Dispirited" Buyers

Reviving Private Label MBS: How and Why?

Posted To: MND NewsWire

In an earlier article we summarized the first part of a report by Urban Institute’s Housing Finance Policy Center, Senior Fellow Jim Parrott about the failure of private label securitization (PLS) to recover after the housing crisis. He cites the lack of certainty in the system on the part of investors and a standardized structure that would ally the lack of trust as well as several economic conditions that weigh against a PLS return, including the lack of incentives and capital to repair the system. He says we are left with a Catch-22: “only with a strong market is it worth spending the time and money to take the steps necessary to create a strong market. Having set out the problem, Parrott suggests three steps to gradually build infrastructure needed for the PLS market to take off again….(read more)

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


Reviving Private Label MBS: How and Why?
Reviving Private Label MBS: How and Why?

Lender/Realtor Connections Ramping Up; Quicken in The News; Young Folks Following Affordability

Posted To: Pipeline Press

"I like to party. And by 'party' I mean take a nap." Lots of folks are taking naps this week, but those on the production side of residential lending are talking, off the record, of being worried about huge drops in pipelines, lower applications (no MBA survey this week – it is closed), and layoffs in the first quarter. Others view the 1st quarter as giving them the opportunity to make key strategic moves. Stay tuned! Of course, plenty of first time home buyers, not necessarily millennials, use the internet to do their initial house and lender search, and then actually use an agent and a loan officer for the task. And they'll need ducats! Research by Bank of America Merrill Lynch finds millennials (per the Census Bureau born between 1982 and 2000) will inherit $40 trillion…(read more)

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


Lender/Realtor Connections Ramping Up; Quicken in The News; Young Folks Following Affordability
Lender/Realtor Connections Ramping Up; Quicken in The News; Young Folks Following Affordability

El-Erian: Rethinking the new normal

[View:http://video.cnbc.com/gallery/?video=3000579481&__source=mnd|news|video|&par=mnd]

Mohamed El-Erian, Allianz chief economic adviser, discusses how he is thinking about the markets amid anti-establishment political movements.

…(read more)

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


El-Erian: Rethinking the new normal
El-Erian: Rethinking the new normal