Winning Streak Snaps As MBS Close At The Lows
Posted To:MBS Commentary
Going out at lows of the day with 4.5's down 3 ticks to 101-00 10yr Tsy at high yield of day just under 3.68 Moderate gains in Dow and Nasdaq, S&P unchanged Big raft of data + Treasury Supply was just a bit too bearish for bonds today Still… Not a huge affair in terms of volume. MBS about half of normal. Kind of a medium term chart tonight but a lot going on with MBS trends, so the discussion will be almost exclusively on the top section of the following chart: Many many colors in the MBS chart, eh? Here's what they are: WHITE LINE: can either be thought of as one of two things: pretty dang close to 101-00 or an inflection point over the past two weeks. Both are accurate. It's moderately supportive vs. the pessimism that the next two sets of lines seem to suggest YELLOW LINES…(read more)
This mortgage update is brought to you by: Matthew Graham – You can read the full article at Winning Streak Snaps As MBS Close At The Lows
10 Days Left in Fed’s MBS Purchase Program. What is Potential for Extension?
Posted To:MND NewsWire
The Federal Reserve reported on their weekly purchases of agency mortgage-backed securities (MBS). In the week ending March 17, 2010, the Federal Reserve purchased a gross total of $10.6 billion agency MBS. In that week the Fed sold $601 million mortgage-backeds (supported the roll), for a net total of $10.0 billion agency MBS purchases. This amount is unchanged from the previous three reporting periods. The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities…(read more)
This mortgage update is brought to you by: Adam Quinones – You can read the full article at 10 Days Left in Fed’s MBS Purchase Program. What is Potential for Extension?
Lenders Reprice for the Worse. Mortgage Rates Move Higher
Posted To:Mortgage Rate Watch
Mortgage rates moved a few basis points lower yesterday after producer price data indicated inflation is still not a market moving concern. This data came out early in the morning which allowed lenders to improve rate sheet pricing right out of the gates. After that, mortgage backed securities prices moved sideways for most of the day before closing slightly above the price which they opened. Most lenders left rate sheets unchanged on the day, at very aggressive levels. The economic calendar was packed today. First out was consumer level inflation data, the CPI. The Bureau of Labor Statistics released the Consumer Price Index at 8:30 this morning. This index measures the price change of a fixed basket of goods and services purchased by consumers, also known as inflation, the enemy of interest…(read more)
This mortgage update is brought to you by: Victor Burek – You can read the full article at Lenders Reprice for the Worse. Mortgage Rates Move Higher
MBS Finding Support at 101-00
Posted To:MBS Commentary
4.5's down 2 ticks on the day at 101-01 10yr tsy down 8 ticks, bringing yield up to 3.67 S&P down a point, Dow up just over 30 points. Current levels in bonds are at or slightly better than well tested support on the day With no data, and quadruple witching, tomorrow is uncertain. After moving weaker all day in trend channels, MBS and treasuries look to be finding some support at recent lows. Whether that's merely a stop to today's bleeding or a broader consolidation that will reverse course tomorrow remains unknown. What is known is that reprices for the worse have already happened and in some cases may still happen, but the market-based motivations for them are fading for the moment. If you didn't lock last night and find yourself floating right now, tomorrow is too uncertain…(read more)
This mortgage update is brought to you by: Matthew Graham – You can read the full article at MBS Finding Support at 101-00
Shortening the Short Sale Timeline: Broker Price Opinions
Posted To:Voice of Housing
Short sales have been hampered by cycle times that can easily last months. One of the critical steps to improving adoption of this loss mitigation tool is to standardize and shorten the time from initial offer to investor acceptance. Using BPOs (Broker Price Opinions) to benchmark and vet purchase offers is a critical step that can save weeks or more from the process. Rather than a buyer submitting an offer and not knowing whether it was accepted or rejected for one or two weeks, they could have a response in just a few days . Anyone who has used or seen the evolution of BPO services over the past six to 12 months understands the comprehensive and statistical data and methodologies that are used to derive a value opinion. This month, appraiser groups told Treasury Secretary Geithner that real…(read more)
This mortgage update is brought to you by: Tim Rood – You can read the full article at Shortening the Short Sale Timeline: Broker Price Opinions