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Mortgage News Daily News Feed
Posted To: MBS CommentaryAs of mid-July bond markets seem to have put their foot down with respect to the relationship between long and short term rates. With the economic recovery and global growth outlook still open to debate--not to mention with global QE efforts ongoing--it makes sense for longer term rates to maintain a reasonable level of sponsorship. This is in line with the cries we often here for the economy being unable to sustain much of a run higher in rates. Such a run would seemingly be in contradiction to the Fed's stated intention of raising rates, but trading levels continue to show us how both can live in harmony. Let's not forget that earlier this year, 2yr yields and 10yr yields were as close together as 120bps. Today they're only 153bps apart after being closer to 180bps earlier this...(read more)
Posted To: Mortgage Rate WatchMortgage rates were very close to unchanged despite market volatility surrounding the release of today's GDP figures. GDP can occasionally cause a significant response in mortgage rates, and that's especially true of the "advance" release. That's due to the fact that the "advance" release is the first look at GDP for any given quarter. Subsequent releases merely revise the previous quarter's result. Moreover, the Commerce Department implements revisions once a year that greatly affect past GDP reports. So not only are we getting the first look at last quarter's GDP, but also a potentially significant revision to GDP numbers over the past 2+ years. Today's revisions painted a generally weaker picture of economic growth since 2012. But the most recent quarter showed slightly stronger inflation...(read more)
Posted To: MND NewsWireWell Fargo Bank announced today that it will immediately begin winding down its marketing services and desk rental agreements with real estate firms, builders, and some other referral sources. Franklin Codel, executive vice president for mortgage production said the company was exploring a number of new options for enhancing and strengthening those relationships over the long term. A press release issued by the company said that the withdrawal decision was made as a result of increasing uncertainty surrounding regulatory oversight of these types of arrangements "and as part of Wells Fargo's ongoing efforts to simplify the process that customers experience as they weigh all of their choices when shopping for a mortgage." The decision is presumed to arise out of a series of enforcement decisions...(read more)
Posted To: MND NewsWireFinding an affordable place to rent within a reasonable distance of employment is becoming increasingly difficult according to Freddie Mac executive David Leopold. Leopold, writing in the company's Executive Perspectives blog says that there is no state in the U.S. where a full-time minimum wage worker can afford the market-rate rent for a one or two bedroom apartment. More than one of every four renters must pay over half their family income to pay for housing and utilities. Since the recession ended new jobs have been heavily concentrated in low-wage industries while the growth of affordable housing has failed to meet the growing demand. Leopold cites a recent Joint Center for Housing Studies (Harvard University) that found that even families with incomes at high at $75,000 can be burdened...(read more)
Posted To: MBS CommentaryBond markets came into the domestic session in slightly weaker territory owing largely to losses that occurred right at the start of the overnight session. 10yr yields were dragged up to 2.322 as Asian markets had their first chance to react to yesterday's FOMC Announcement in a meaningful way. Weakness remained intact despite a nice rally in German Bunds. Following the big GDP announcement, domestic bond markets were weaker for a few split seconds, but quickly began improving as investors sorted out the complex implications of 3 years worth of GDP revisions. Long story short, the past 3 years were actually a bit weaker than initially reported--a fact that's benefited mostly the longer end of the yield curve. That means that 10 and 30yr yields are in positive territory , while the shorter...(read more)