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Mortgage and Finance


Mortgage News Daily

Posted To: MBS Commentary

After today, we're left with a clearer picture of the prevailing short-term range in bond markets. The volatile reaction to the weekend's Italian referendum, among other things, drove the intraday extremes that helped define the pattern. The first trade during Asian market hours was logical . Bonds rallied because Italy voted "no" on the referendum. Regardless of the facts underlying the referendum (different implications could be argued for either result), a "no" vote was generally considered to increase uncertainty, chiefly because it likely paves the way for a new government. To oversimplify, a "no" vote in the Italian referendum became roughly analogous to a Trump vote in the US election. Much like election night in the US, bonds' first move was...(read more)

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12/5/2016 4:29:14 PM

Posted To: Mortgage Rate Watch

Mortgage rates were slightly higher today relative to last Friday's levels, leaving them near the 2-year highs seen last Thursday. Volatility continues to run much higher than normal, with lots of intraday reprices (lenders changing rates in the middle of the business day) over the past 2 weeks, and generally big changes from day to day. Bond markets (which underlie mortgage rate movement) began the day in much weaker territory, but managed to make some huge improvements heading into the afternoon. As such, most lenders were quoting higher rates this morning before repricing to slightly lower rates as the day progressed. To be clear, that's "lower vs this morning." Even after the improvements, we're still not back to Friday's levels. That said, most borrowers would still be seeing the same...(read more)

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12/5/2016 2:34:00 PM

Posted To: MND NewsWire

As everyone knows, interest rates shot up immediately in the wake of the November 8 presidential elections, triggered by a sell-off in Treasury bonds. Now Black Knight says, in its current Mortgage Monitor, that the jump eliminated 50 percent of candidates from the refinanceable population that existed before the election and has also pushed home affordability to a post-recession low. Within three-weeks of the election the 30-year fixed-rate increased by 49 basis points , cutting the number of homeowners who might potentially refinance (either because they could qualify or there was a financial incentive for doing so) from 8.3 million to 4.0 million . This matches a 24-month low set in July 2015. At that time refi volumes were 37 percent lower than in the third quarter of 2016. About $2 million...(read more)

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12/5/2016 11:05:17 AM

Posted To: MND NewsWire

Access to mortgage credit continued its recent upward trend in November. The Mortgage Bankers Association said on Monday that its Mortgage Credit Availability Index (MCAI), increased by 1.6 percent from October to 174.1. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. Lynn Fisher, MBA's Vice President of Research and Economics said of the index, "Mortgage credit availability increased for the third consecutive month in November, driven by increased availability of conventional low down payment and streamlined refinance loan programs." Of the four component indices, the Conforming MCAI saw the greatest increase in availability over the month (up 2.2 percent), followed by the Government MCAI (up 1.8 percent...(read more)

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12/5/2016 9:06:05 AM

Posted To: MND NewsWire

Another piece of the President-elect Donald J. Trump's administration fell into place on Monday with the announcement that former Republican presidential candidate Ben Carson will be Secretary of Housing and Urban Development (HUD). Carson's nomination will require Senate confirmation . Carson, was born in 1951 and grew up in circumstances he describes as "poor" in Detroit. Despite her own third grade education his mother pushed him academically and, after some fits and starts, he finished at the top of his high school class, graduated from Yale with a degree in psychology and from the University of Michigan Medical School. After a residency in neurosurgery at Johns Hopkins he spent several years at Sir Charles Gairdner Hospital in Perth, Australia, returning to Johns Hopkins in 1984 as director...(read more)

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12/5/2016 8:59:20 AM

Posted To: Pipeline Press

It is probably not the case that this date is celebrated by mortgage bankers from coast to coast, and forget the jokes about it being the “Mortgage Drinkers Association.” But on this date in 1933, the 21st Amendment to the Constitution was passed and ratified, ending national Prohibition. Just think about what conferences would be like if alcohol was still banned. It would certainly save a lot of money for the MI companies that always seem to sponsor the parties! Any lender with more than 50% of their 2016 business being refinances is fretting - how are they going to cover the rent? I have spoken to some who have already dusted off their strategic plans for scaling back personnel from a year ago when rates didn't go up. On the plus side of things, the Mortgage Bankers Association...(read more)

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12/5/2016 8:50:17 AM

Posted To: MBS Commentary

This week, we'll finally get to see how much of an impact remains to be had for the European Central Bank (ECB) announcement. The ECB conducts their announcements on a schedule, just like the Fed. So in one sense, this is just another ECB announcement. In another sense, however, this is the announcement that has been placed on a pedestal as the venue for the ECB to comment on the continuation of its bond-buying program. Market participants expected/feared some comment to that effect at the most recent meetings, but Draghi went out of his way to downplay such possibilities. The ECB increasingly changed its tune in recent weeks and is now on the record as saying Thursday's meeting will address the continuation of the program (or lack thereof). Unofficially, we're told that the ECB...(read more)

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12/5/2016 7:52:13 AM

Posted To: MBS Commentary

Let's change up the old fairy tale. Bond markets have been cried wolf on a few recent occasions. In my version of the fairy tale, "crying wolf" is equivalent to saying "hey guys, there are no wolves around, so it's safe to come out and play." Anyone who listened to that wolf cry (Nov 16, 22, or 29) was promptly eaten by the wolves (i.e. rates snapped brutally higher just when it looked like they might be calming down). With the blood still on the ground from the last feasting of the wolves (yesterday's big sell-off), we're once again hearing bond markets cry wolf. This time, we have a rejection of a fairly epic long-term ceiling at 2.50% in 10yr yields as well as a rally below the next relevant ceiling of 2.42% today--all against the backdrop of a jobs report...(read more)

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12/2/2016 4:17:18 PM

Posted To: Mortgage Rate Watch

Mortgage rates erased yesterday's losses after today's jobs report, though not necessarily because of it. The Employment Situation (affectionately referred to as "the jobs") is traditionally one of the biggest sources of market movement. So when rates make a big move following the jobs report, it's only natural to assume a cause and effect relationship. That said, most of the credit for today's move goes other places. First of all, there's the simple fact that rates have been trending so decisively higher in general. Just yesterday, I noted that we were increasingly likely to see a rebound as rates continued to push the boundaries of past precedent. In other words, rates have risen about as quickly as they ever have, and it's common for any financial instrument to blow off some steam in such...(read more)

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12/2/2016 3:19:00 PM

Posted To: MND NewsWire

The Federal Housing Administration (FHA) has now joined the Federal Housing Finance Agency in raising the dollar limits for loans that qualify for FHA guarantees. Last week FHFA raised limits for Fannie Mae and Freddie Mac loans to 424.100, a number which forms a basis for some of the FHA changes . The new limits, which will be effective for loans with case numbers assigned on or after January 1 , will constitute a slight increase in 2,948 U.S. counties; limits will remain at 2016 levels in 286 counties . In so-called high cost areas, the national " ceiling " will increase to $636,150 from $625,000. The " floor " will increase to $275,665 from $271,050. The loan limit ceiling is 150 percent of the national conforming limit ($424,100) while the floor is set at 65 percent. The floor applies to...(read more)

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12/2/2016 8:27:52 AM

Reuters Business News


Reuters: Business News

HONG KONG (Reuters) - Asian stocks posted their biggest rise in two weeks on Tuesday and the euro steadied as investors judged the selloff after Italy's referendum was overdone, with robust U.S. economic data also helping sentiment.

12/5/2016 8:06:45 PM

NEW YORK (Reuters) - U.S. crude futures strengthened Monday before retreating in post-settlement trade as the market lost confidence OPEC cuts would be sufficient to reduce oversupply given increased U.S. drilling.

12/5/2016 4:20:17 PM

WASHINGTON (Reuters) - United Technologies Corp , parent company of Carrier Corp, got a "good deal" with President-elect Donald Trump that allowed it to shift most jobs at two Indiana plants to Mexico, its chief executive said on Monday in an interview with CNBC.

12/5/2016 6:03:12 PM

SAN FRANCISCO (Reuters) - Sales of the Apple Watch to consumers set a record during the first week of holiday shopping, and the current quarter is on track to be the best ever for the product, Apple Inc Chief Executive Tim Cook told Reuters.

12/5/2016 11:30:31 PM

WILMINGTON, Del. (Reuters) - The Delaware Supreme Court revived a lawsuit against Zynga Inc's controlling shareholder, Mark Pincus, and fellow board members for allegedly allowing leaders of the social gaming company to act on inside information and dump stock before it crashed in 2012.

12/5/2016 5:59:40 PM

BEIJING (Reuters) - Nissan Motor Co Ltd's premium Infiniti brand will likely end 2016 with record sales well beyond the 215,000 vehicles it sold worldwide last year, the Japanese brand's global chief told Reuters.

12/5/2016 11:04:41 PM

NEW YORK (Reuters) - Union mechanics at United Continental Holdings Inc on Monday ratified a six-year joint collective bargaining agreement with the airline, marking the end to several years of contract talks between the two parties.

12/5/2016 4:52:26 PM

WASHINGTON (Reuters) - U.S. services sector activity hit a one-year high in November, with a surge in production boosting hiring, further evidence of strength in the economy that clears the way for the Federal Reserve to raise interest rates next week.

12/5/2016 11:42:26 AM

HONG KONG (Reuters) - The chief architect behind Dalian Wanda Group's $4.4 billion buyout to take its flagship Hong Kong-listed property arm private and relist it in China has resigned without seeing the plan through, according to an internal memo.

12/5/2016 10:43:14 PM

MEXICO CITY (Reuters) - Mexican telecoms giant America Movil , controlled by tycoon Carlos Slim, said on Monday its Mexican unit had reached an agreement to provide a national roaming service to its main competitor in the local market, Telefonica Mexico.

12/5/2016 10:06:17 PM