Prices Up Most in 2 Years; Construction Spending Improved Into Year-End; Rates Lowest in Weeks

Mortgage rates improved slightly to begin 2017, bringing them to the lowest levels in nearly a month, on average. December 8th was the last time rates were lower. During December, conventional 30yr fixed quotes were straying into the 4.375%-4.5% territory for many lenders. Now, nearly every lender is back down to 4.25% at least, with several already down to 4.125%. These rates assume a top tier scenario with no negative adjustments. Today’s victory was far from a given. That looked especially true this morning as bond markets got off to a weaker start (bond market weakness implies higher rates). Indeed, most lenders were slightly worse off this morning. Bonds improved, somewhat substantially, as the day wore on. Ultimately, most lenders repriced for the better (i.e. they saw enough market movement
Prices Up Most in 2 Years; Construction Spending Improved Into Year-End; Rates Lowest in Weeks
Prices Up Most in 2 Years; Construction Spending Improved Into Year-End; Rates Lowest in Weeks

MBS RECAP: Bonds Relax After Epic Glut of Corporate Issuance

Posted To: MBS Commentary

Bonds began the new year on the defensive thanks to a deluge of corporate bond issuance as well as stronger ISM Manufacturing data. By 10:15am, 10yr yields were at their highest levels of the day, and nearly 7bps higher than last week's close. Fannie 3.5 MBS were more than 3/8ths of a point weaker. But that's when the comeback began. Bond markets braced for the typically detrimental effects of corporate issuance by selling. As the issuance announcements kept coming, traders found themselves over-prepared. In other words, they'd erred too much on the side of selling, and thus were able to start buying again. Granted, there is a far more complex way to explain this, and there are other factors in play today, but that was the day's central theme in a nutshell. 10yr yields and MBS…(read more)

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MBS RECAP: Bonds Relax After Epic Glut of Corporate Issuance
MBS RECAP: Bonds Relax After Epic Glut of Corporate Issuance

Mortgage Rates Lowest in Weeks

Posted To: Mortgage Rate Watch

Mortgage rates improved slightly to begin 2017, bringing them to the lowest levels in nearly a month, on average. December 8th was the last time rates were lower. During December, conventional 30yr fixed quotes were straying into the 4.375%-4.5% territory for many lenders. Now, nearly every lender is back down to 4.25% at least, with several already down to 4.125%. These rates assume a top tier scenario with no negative adjustments. Today’s victory was far from a given. That looked especially true this morning as bond markets got off to a weaker start (bond market weakness implies higher rates). Indeed, most lenders were slightly worse off this morning. Bonds improved, somewhat substantially, as the day wore on. Ultimately, most lenders repriced for the better (i.e. they saw enough market movement…(read more)

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Mortgage Rates Lowest in Weeks
Mortgage Rates Lowest in Weeks

Santelli Exchange: Corporate tax reform & regulatory relief

[View:http://video.cnbc.com/gallery/?video=3000580505&__source=mnd|news|video|&par=mnd]

CNBC's Rick Santelli and Peter Boockvar, The Lindsey Group, discuss investor sentiment post-election and the U.S. economy.

…(read more)

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Santelli Exchange: Corporate tax reform & regulatory relief
Santelli Exchange: Corporate tax reform & regulatory relief

Construction Picked up Pace as Year-End Neared

Posted To: MND NewsWire

Perhaps construction spending is finally emerging from the doldrums where it has lingered for months. For the second month in a row the Census Bureau reports an uptick in total spending and in its publicly and privately funded components. Total construction spending posted a 0.9 percent gain in November to a seasonally adjusted annual rate of $1.18 trillion from the revised (from $1.172 trillion) $1.171 trillion in October. This is 4.1 percent above the spending rate in November 2015. Expenditures in the first 11 months of 2016 totaled $1.07 trillion compared to $1.03 trillion for the same period in 2015, an increase of 4.4 percent. Privately funded construction was at a seasonally adjusted annual rate of $892.8 billion, 1.0 percent higher than the October total, which was revised from $885…(read more)

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Construction Picked up Pace as Year-End Neared
Construction Picked up Pace as Year-End Neared

ISM manufacturing index at 54.7 (Dec.) vs. 53.2 (Nov.)

[View:http://video.cnbc.com/gallery/?video=3000580663&__source=mnd|news|video|&par=mnd]

CNBC's Rick Santelli reports the latest read on construction spending and the ISM manufacturing index.

…(read more)

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ISM manufacturing index at 54.7 (Dec.) vs. 53.2 (Nov.)
ISM manufacturing index at 54.7 (Dec.) vs. 53.2 (Nov.)

Prices Jump Most in 2 Years -CoreLogic

Posted To: MND NewsWire

For the sixth consecutive month , the CoreLogic Home Price Index (HPI) increased on an annual basis by a greater degree than it had in the previous month. The HPI for November 2016 indicates that there was a 7.1 percent appreciation in home prices nationally when compared to November 2015. The year-over-year increase in reported by CoreLogic for January 2016 was 6.9 percent. It then ticked down steadily until June and an annual gain of 5.7 percent. Since then the increases have accelerated with the change from October to November the largest to date at 0.04 percentage point. On a month-over-month basis the gain from October to November was 1.1 percent . This is the same increase that has been posted in each of the last six months. Annual appreciation was highest again in Oregon, Washington…(read more)

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Prices Jump Most in 2 Years -CoreLogic
Prices Jump Most in 2 Years -CoreLogic

CFPB Thoughts; Credit Suisse Settles; F&F Changes; Company Fined For a Boat Cruise?

Posted To: Pipeline Press

(Yes, a paragraph of pure fluff to start the year.) Does anyone handwrite checks anymore? Always a struggle to remember “2017” instead of “2016.” And here’s a story about twins being born in separate years . With the change in year it is good to know that Saudi Arabia is adopting the Gregorian calendar – the one we, and most of the world, uses and which was introduced in 1582. The state previously used the Islamic calendar, where it is 1438 , not 2016. The regulatory and compliance quagmire that residential lending finds itself in has some extreme examples. One was the Minnesota Department of Commerce settling, for $45,000, against title company TitleSmart for hosting a boat cruise supplying realtors and mortgage loan officers with dinner and drinks. Jeremy Potter…(read more)

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CFPB Thoughts; Credit Suisse Settles; F&F Changes; Company Fined For a Boat Cruise?
CFPB Thoughts; Credit Suisse Settles; F&F Changes; Company Fined For a Boat Cruise?

MBS Week Ahead: New Year Begins With Gains Fading; NFP Friday

Posted To: MBS Commentary

NOTE: This paragraph will be at the top of the Day Ahead for a few weeks. Once you've read it, feel free to skip it. The Day Ahead has long been my venue to offer deep thoughts with a mix of big-picture and near-term technical considerations. I'll still be doing that, but in posts on MBS Live and under the 'General Commentary' heading (which still shows up on MND for free, but delayed). The Day Ahead will quickly evolve into a more cut and dried run-down of the events of the day (as it should be). Some days are more interesting than others, so some posts will be almost comically short, depending on the slate of events. It will still contain charts from time to time, but generally just to lay out technical levels we should be watching. — Bond markets are beginning 2017 by erasing…(read more)

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MBS Week Ahead: New Year Begins With Gains Fading; NFP Friday
MBS Week Ahead: New Year Begins With Gains Fading; NFP Friday

Rates Slightly Lower to End 2016; United Shore Settlement

Mortgage rates moved lower for a 3rd consecutive day to end 2016, bringing them to the lowest levels in more than 3 weeks for many lenders. December 8th was the last time rates were lower. As of yesterday, 4.25% regained the status of the “most prevalent” conventional 30yr fixed quote on top tier scenarios. Quite a few lenders remain at 4.375% and a scant few are down to 4.125%. While this is all good news in the context of the past few weeks, 2016 nonetheless ends with one of the worst 2-month losing streaks in the history of mortgage rates. Specifically, the 5 weeks following the election were the worst 5 weeks on record, going back to the Spring of 1987. For anyone considering locking or floating into the 3-day weekend (markets and mortgage lenders are closed on Monday, by the way), it’s
Rates Slightly Lower to End 2016; United Shore Settlement
Rates Slightly Lower to End 2016; United Shore Settlement