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Mortgage News Daily News Feed
Posted To: MND NewsWirePurchase loans continued to increase as a percentage of loan originations in April. Ellie Mae's Origination Insight Report for the month put the purchase share of all closed loans at 52 percent , a 6 percentage point jump from March and the first time in 2015 that more than half of loans were originated for that purpose. Seventy-two percent of FHA loans were for purchasing, also a 6 point month-over-month increase but significantly lower than the 80+ percent share of its loans that went for purchasing every month from May 2014 through January 2015. Fifty-eight percent of conventional loans were originated for purchasing and 68 percent of VA loans. Of all loans originated in April 64 percent were conventional , 24 percent FHA, 9 percent VA and 3 percent were classified as "other." Ellie Mae...(read more)
Posted To: MBS CommentaryMuch of the volatility in late April and early May has been frustratingly opaque in terms of traditional cause and effect relationships. We were forced to resort to discussing things like tradeflow momentum and corporate issuance to explain movement. While these two esoteric factors are always in play to some extent, it's much easier to accept them when they're pushing in the same direction as the economic data. That was the case today. In terms of the aforementioned esoteric stuff, we had positive tradeflow momentum right off the bat in the overnight session. US Treasuries stayed green, defying European bond market momentum which carried German Bunds into negative territory just after 5am. Whereas European bonds would never make it back into positive territory, Treasuries bounced in...(read more)
Posted To: Mortgage Rate WatchMortgage rates moved tentatively lower today. The pace was only slightly better than yesterday when it was all but undetectable. To those expecting more improvement based on trading levels in the bond markets that drive rates, it might seem a bit frustrating. Understandably though, lenders tend to err on the side of caution ahead of an extended holiday weekend. But, why be tentative due to extended weekends? In other words, what is it about the long weekend that makes mortgage rates a bit higher than they would normally be? There are a few reasons, but one of the easiest to understand is the fact that markets can move more over a 3-day weekend, all other things being equal. The greater the potential volatility, the greater the cost to protect against it. That cost is passed on directly in the...(read more)
Posted To: MBS CommentaryApril 9th. That's the last time bond markets haven't rallied on a Thursday. While some of the older examples in this trend are close calls, the last three Thursdays have been unequivocally positive, and today is no exception (so far). Treasuries began the overnight session holding perfectly flat during Asian hours. When European trading picked up, Treasuries outperformed from the start. During the weakest overnight momentum, German Bunds rose more than 7bps while Treasuries only rose 3.5bps. The only mildly disconcerting moments followed Jobless Claims data. After starting the domestic session in positive territory, both MBS and Treasuries bounced back to unchanged levels after claims data. They bounced hard (relatively speaking) and got help at 10am from weaker Philly Fed and Existing...(read more)
Posted To: MND NewsWireExisting home sales in April failed both to match their corresponding numbers in March and to live up to the consensus of analysts in advance of this morning's National Association of Realtors® (NAR) report. Sales of existing single family homes, condominiums, and coops were at a seasonally adjusted annual rate of 5.04 million units in April, down 3.3 percent from an upwardly revised (from 5.19 million units) 5.21 million in March. Analysts had expected on average a rate of 5.22 million units. NAR tried to put a cheery spin on the news pointing out that sales were 6.1 percent higher than in April 2014, that it was the seventh month of year-over-year increases, and the second month in a row that sales had topped 5 million. The typical home also sold in the shortest time frame in almost two...(read more)