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Mortgage News Daily News Feed
Posted To: MBS CommentaryUp until this morning's Durable Goods data, bonds looked ready to go either way. MBS and Treasuries were slightly weaker, somewhere around halfway back to yesterday's weakest levels. An exceptionally strong showing in the econ data may well have resulted in a test of those weak points. Instead, the data was fairly poor overall. Cars, Planes, and defense spending buoyed the headline, but by the time those volatile, big-ticket items were factored out, the business spending outlook was not so hot . In addition, last month's numbers were revised significantly lower. Bonds rallied as a result. The trading that occurred overnight, leading up to the report ends up looking like a temporary departure from a 2-day trend that stayed positive for bonds through the noon hour today. It's...(read more)
Posted To: MND NewsWireThe Department of Housing and Urban Development (HUD) is tweaking its bulk loan sales program to give distressed borrowers a better shot at staying in their homes. HUD announced today that investors who purchase delinquent mortgages through the Department's Distressed Asset Stabilization Program (DASP) will have to delay foreclosures for one year after purchase rather than the six month hiatus that had previously been required. In addition loan servicers will have to evaluate all borrowers in the loan pool for eligibility for the Home Affordable Modification Program (HAMP) or a similar loss mitigation program. In the past the assessment of borrowers for loan modifications was encouraged but not required. HUD is also making improvements to the Neighborhood Stabilization Outcome (NSO) sales portion...(read more)
Posted To: Mortgage Rate WatchMortgage rates barely budged again today, which means they've been able to hold under an important ceiling as we head into next week's Fed Announcement. Given the improvement in underlying market conditions, lenders are playing it safe with rate sheets. This could allow them more flexibility in the event markets improve further at the start of next week. 3.75% remains the most prevalently-quoted conventional 30yr fixed rate for top tier scenarios, though several lenders are at 3.625%. As always, keep in mind that a borrower being quoted one rate almost always has the option to pay more upfront in exchange for a lower rate. Whether or not this makes sense is a matter of personal preference. In terms of lock/float strategy heading into next week, today was effectively a "pass." That's not a bad...(read more)
Posted To: MND NewsWireLenders appear at least moderately encouraged by new efforts on the part of Fannie Mae and FHA to lower the costs and increase the availability of mortgage financing. Fannie Mae's most recent quarterly Mortgage Lender Sentiment Survey, conducted in February found about 2/3s of lenders thought the initiatives would be beneficial. Fannie Mae introduced a new 97 percent home mortgage late last year and a similar program was unveiled by Freddie Mac starting this month. In January FHA reduced its annual mortgage insurance premiums ( MIP ) by 0.5 percent on new loans. Fannie Mae's Economic & Strategic Research Group surveyed senior mortgage executives in February to examine lenders' views about the expected impact of these initiatives. Lenders had earlier told Fannie Mae that the top two causes...(read more)
Posted To: MBS CommentaryThe most notable feature of today's trading session has been the weaker than expected components of the Durable Goods data. In other words, the headline was better than expected, but the internals were weaker. Specifically, the internal component that factors out defense spending and aircraft was -.5 percent weaker versus forecasts for a 0.3 percent improvement. Additionally, the previous reading of that component was revised to -2.2 from -1.1. This gave bonds a boost at the outset. Both Treasuries and MBS moved into positive territory after beginning the day slightly weaker. The gains have been mostly maintained amid quiet Friday trading conditions. The afternoon presents some headwinds though. I alluded to these in this morning's commentary, saying that opportunistic traders may try...(read more)