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Mortgage News Daily News Feed
Posted To: MND NewsWireAffordability is becoming an issue based on more than just rising interest rates and rising home prices according to the latest Home Purchase Sentiment Index (HPSI) from Fannie Mae. That index dipped by 1.7 points from December to January, resulting in a reading of 81.5. Those results, the company said, reflected in part housing affordability constraints based on wages. The HPSI distills answers to six critical questions from the monthly National Housing Survey into a single number. The survey is conducted by Fannie Mae among a sample of 1,000 consumers, both homeowners and renters and is intended to gather their current views and forward-looking expectations of housing market conditions and address topics that are related to their home purchase decisions. The questions used to construct the...(read more)
Posted To: Pipeline PressI asked my cat Myrtle (is she my mews?) if she knew anything about cybersecurity. She gave me a look that told me she spends as much time worrying about hackers as she thought was necessary. Financial services firms, however, worry about it plenty and are trying to strengthen their cybersecurity. But lo and behold their employees are unintentionally exposing critical information that can make a breach possible. Companies are warning employees about their social media posts and e-mail , banning the use of USB drives and other portable devices, and ramping up spending on cybersecurity. "We spend an ocean of money on cybersecurity, Wells Fargo CEO John Stumpf said before Christmas. "It is the only expense where I ask if it's enough." Before I forget, Friday's commentary contained a note from a...(read more)
Posted To: MBS CommentaryDepending on your point of view, this could end up being the most interesting week of the year for bond markets. If that turns out to be the case, it would likely have something to do with stocks also having an interesting week. Both are trading near long-term, big-picture crossroads. This could go on for several weeks, or it could 'pop' at any moment. Specifically, bond markets have been reluctantly rallying in concert with 2016's flight-to-cash. Cash is the big winner, but bonds have still been winning. The reluctance has been kicking in around 10yr yields of 1.84. Not only is that a long term inflection point, but it will also soon mark the lower boundary of the uptrend leading back from 2012's lows. Breaking below the line in the following chart would be a major victory...(read more)
Posted To: MBS CommentaryMarkets were confused by today's jobs data--at least bond markets were. The 151k vs 190k miss on headline NFP was ostensibly offset by the improvement in wage growth and the lower unemployment rate. Normally the unemployment rate could be explained-away by falling labor force participation, but not this month. Combine that with the relatively shallow miss (39k seems like a lot, but it's actually quite small in terms of the average NFP beat/miss), and there were plenty of reasons for indecisiveness. equities markets were more decisive and they set their course lower right out of the gate. So wait... both stocks and bonds sold off because the data had some redeeming qualities? There must be something more to the story--some reason for the general notion of "economic positivity"...(read more)
Posted To: Mortgage Rate WatchMortgage rates were mostly unchanged today, though a few lenders were microscopically higher in cost . That's an uncommon result for the day of the big jobs report release, but in today's case it may be somewhat understandable. More often than not, the most important part of the Employment Situation data--at least as far as markets are concerned--is the top line job creation (aka " nonfarm payrolls " or simply, NFP). The median forecast for today's NFP was 190k and actual job creation fell well short of that at 151k. Normally, that's all bond/mortgage markets would need to know before moving toward lower rates, but there were caveats. The unemployment rate moved slightly lower than expected and wage growth improved much more than expected. The latter has been increasingly important when it...(read more)