Mortgage Rates End Losing Streak But Treasury Auctions Loom
Posted To:Mortgage Rate Watch
The week ahead is very light in terms of economic data, that implies we should expect the stock market to continue to provide mortgage rates with directional guidance. If stocks rally, look for mortgage rates to move higher. If stocks fall, look for mortgage rates to improve. The only economic reports on the schedule in the week ahead that have the potential to move mortgage rates will be released on Wednesday and Thursday. Tomorrow the Federal Reserve releases the Beige Book, named for the color of its cover. The Beige Book is a compilation of anecdotal information and data on current economic conditions across the country. The findings are not the views of Federal Reserve officials, instead, each Federal Reserve bank interviews key business contacts, economists, market experts, and other…(read more)
This mortgage update is brought to you by: Victor Burek – You can read the full article at Mortgage Rates End Losing Streak But Treasury Auctions Loom
Housing Crisis Needs Localized Approach, Not “One Size Fits All” Solution
Posted To:MND NewsWire
Eric Rosengren, president of the Federal Reserve Bank of Boston, told attendees at a Federal Reserve sponsored conference on REO and Vacant Property Strategies for Neighborhood Stabilization last Thursday that there may not be a single solution for the housing market as the effects of financial crisis depend on the characteristics of each individual community. Framing the problem affects the solutions you propose, he said. If we assume we are trying solve a problem of foreclosures and REO rooted in the housing bubble, the solutions will tend to emphasize mitigating foreclosures, accelerating the disposition of REO, or advocating for reconsideration of the legal systems approach to personal bankruptcy and foreclosure. If the problem is viewed as being primarily about housing demand, then the…(read more)
This mortgage update is brought to you by: Jann Swanson – You can read the full article at Housing Crisis Needs Localized Approach, Not “One Size Fits All” Solution
Rates Retrace Late Week Losses. Lost Rebate Restored
Posted To:MBS Commentary
Good Morning. I hope everyone had a safe and sound Labor Day weekend. I for one feel re-energized following a three day stay in State College, PA (PSU). The weather was perfect, we blew out Youngstown State, and I escaped the bike trails unscathed. Mission accomplished! Welcome back to reality… The bond market ended last week in a panic after a better than expected Employment Situation Report added enthusiasm to a two-day S&P rally. With the econ calendar essentially empty and Treasury (and Corporate) debt supply on the chopping block in the week ahead, the stage was set for stocks to extend optimism and push rates higher . That isn’t happening today… Instead, short covering combined with a modest “flight to safety” bid in a thinly traded marketplace has helped the long end of the yield…(read more)
This mortgage update is brought to you by: Adam Quinones – You can read the full article at Rates Retrace Late Week Losses. Lost Rebate Restored
Zero-Down Payment Programs; New FHA Mortgagee Letter; Does the Value of Servicing Warrant Retaining It?
Posted To:Pipeline Press
Much of life is a balancing act. For example, I eat my Captain Crunch with only low-fat milk because I wouldn’t want unnecessary calories. Underwriting is also a balancing act, matching the risk of the borrower being able to make payments with the desire for the lender to earn a rate of return on the loan commensurate with the risk. In mortgage lending, there is some feeling that the “pendulum” has swung too far to one side here in the last year or two, leaving some borrowers (self-employed and jumbo, to name a quick two) in the lurch. But there are old, and new programs, out there that go back to the “old days”. READ MORE But zero down payments – again? A new program from Fannie Mae called Affordable Advantage is available to first-time home buyers in Idaho, Massachusetts, Minnesota and Wisconsin…(read more)
This mortgage update is brought to you by: Rob Chrisman – You can read the full article at Zero-Down Payment Programs; New FHA Mortgagee Letter; Does the Value of Servicing Warrant Retaining It?
The Week Ahead: Beige Book, Treasury Auctions, Trade Balance
Posted To:MBS Commentary
September began on a strong note last week as the Dow jumped almost 3%, or 297 points. Whether the strength continues this week could depend on the Federal Reserve’s assessment of the economy (Wednesday) and trade balance figures (Thursday), but there isn’t much data on tap so technical factors may motivate the market . So far, it appears investors aren’t so optimistic. Stock futures are falling and interest rates are rallying. One hour before the opening bell, S&P 500 futures are down 7.50 points to 1,096.00 and Dow futures are 60 points lower at 10,376. The 2-year Treasury note is +0-02 at 99-25 yielding 0.49% and the 10-year Treasury note is +0-20 at 99-27 yielding 2.643%. The October delivery FNCL 4.0 is +0-08 at 102-22. Key Events in the Week Ahead: Tuesday: No economic…(read more)
This mortgage update is brought to you by: Patrick McGee – You can read the full article at The Week Ahead: Beige Book, Treasury Auctions, Trade Balance