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Posted To: MBS Commentary
Bonds began the day in weaker territory, threatening to confirm a 2 day move that ends March's impressive run. Weakness remained intact all day but began to fade after 10:30am when the brexit vote failure headlines came out. Brexit continues to be an ancillary source of uncertainty for the global financial market. It's not going to change any big picture trends at this stage, and if it ever does, a case could only be made for such a thing by a lengthy research paper years and years after the fact. As for the day's non-brexit-related considerations, the economic data wasn't a big market mover and volatility was quite well contained considering the combination of a big monthly move and the fact that today was month/quarter end . This absence of volatility is both good and bad...(read more)Posted To: MBS Commentary
Bonds began the day in weaker territory, threatening to confirm a 2 day move that ends March's impressive run. Weakness remained intact all day but began to fade after 10:30am when the brexit vote failure headlines came out. Brexit continues to be an ancillary source of uncertainty for the global financial market. It's not going to change any big picture trends at this stage, and if it ever does, a case could only be made for such a thing by a lengthy research paper years and years after the fact. As for the day's non-brexit-related considerations, the economic data wasn't a big market mover and volatility was quite well contained considering the combination of a big monthly move and the fact that today was month/quarter end . This absence of volatility is both good and bad...(read more)Posted To: Mortgage Rate Watch
Mortgage rates were higher again today, making this the first confirmed bounce since beginning their stellar run last week. To be clear, rates have been in a broader stellar run since November 2018, but had definitely settled into a sideways pattern in the first part of 2019. Last week's big move served as the great escape from that pattern. In the trivia department, with today in the books, this has become the best month for mortgage rates since late 2008 (in terms of overall movement, not outright levels... rates were definitely lower many times). The bigger question is whether or not the good times keep rolling in April. If these past 2 days of weakness are a cue, there's a risk that a bigger pull-back will take shape. Either way, next week's economic data could play a key role as there...(read more)Posted To: Mortgage Rate Watch
Mortgage rates were higher again today, making this the first confirmed bounce since beginning their stellar run last week. To be clear, rates have been in a broader stellar run since November 2018, but had definitely settled into a sideways pattern in the first part of 2019. Last week's big move served as the great escape from that pattern. In the trivia department, with today in the books, this has become the best month for mortgage rates since late 2008 (in terms of overall movement, not outright levels... rates were definitely lower many times). The bigger question is whether or not the good times keep rolling in April. If these past 2 days of weakness are a cue, there's a risk that a bigger pull-back will take shape. Either way, next week's economic data could play a key role as there...(read more)Posted To: MND NewsWire
With the third set of new home sales data in 21 days it seems the Census Bureau has caught up from the partial government shutdown. Whether because of the delay, or just in the normal course of revisions, changes to the December numbers were dramatic enough to mention. First reported at a seasonally adjusted rate of 621,000 units, a surprising 16.9 percent increase , they were revised even higher to 652,000. Now a second revision has lopped more than 60,000 units off that pace, reducing it to 588,000 and erasing the entire percentage gain. Getting back on track, the most recent data shows newly constructed homes sold during February at a seasonally adjusted annual rate of 667,000 units, an increase of 4.9 percent from the 636,000-unit pace in January. That rate was revised up from 607,000 units...(read more)Posted To: MND NewsWire
With the third set of new home sales data in 21 days it seems the Census Bureau has caught up from the partial government shutdown. Whether because of the delay, or just in the normal course of revisions, changes to the December numbers were dramatic enough to mention. First reported at a seasonally adjusted rate of 621,000 units, a surprising 16.9 percent increase , they were revised even higher to 652,000. Now a second revision has lopped more than 60,000 units off that pace, reducing it to 588,000 and erasing the entire percentage gain. Getting back on track, the most recent data shows newly constructed homes sold during February at a seasonally adjusted annual rate of 667,000 units, an increase of 4.9 percent from the 636,000-unit pace in January. That rate was revised up from 607,000 units...(read more)Posted To: MBS Commentary
While the notion that "all good things come to an end" is the subject of philosophical debate, it's a safe bet that all awesome bond rallies will eventually meet resistance. For the first time in the entire month of March, the bond market is exhibiting some weakness that's worth mentioning. Until now, the worst thing you could say about this month was that rates were only holding sideways for a few days here and there in between strong moves lower. While that certainly makes today's weakness more palatable in the bigger picture, we're always most concerned with the future, aren't we! Rates are still near long-term lows and are still much lower than they were even 2 weeks ago? Good for them! How about next week?! Prediction is a fool's errand most of the time...(read more)Posted To: MBS Commentary
While the notion that "all good things come to an end" is the subject of philosophical debate, it's a safe bet that all awesome bond rallies will eventually meet resistance. For the first time in the entire month of March, the bond market is exhibiting some weakness that's worth mentioning. Until now, the worst thing you could say about this month was that rates were only holding sideways for a few days here and there in between strong moves lower. While that certainly makes today's weakness more palatable in the bigger picture, we're always most concerned with the future, aren't we! Rates are still near long-term lows and are still much lower than they were even 2 weeks ago? Good for them! How about next week?! Prediction is a fool's errand most of the time...(read more)Posted To: Pipeline Press
Wells Fargo’s continuing saga continues with the resignation of its CEO Tim Sloan over opening accounts without customer’s permission. “Fortunately” this time it was not for mortgage-related issues, and Allen Park, Wells’ SVP and general counsel, steps in temporarily until a CEO from outside the company is found. Wells recently awarded Sloan a 5 percent pay raise, to $18.4 million a year. Speaking of comp, NASA scientists will pay you $19,000 to stay in bed two months. Comp is relative, and originators around the country are seeing their pay, and jobs, change. (The latest STRATMOR blog is, “Changes in the role of the LO and Their Compensation.” ) Lastly, do you pay your employees in old-fashioned dollars? In Japan (not exactly known for its thriving...(read more)Posted To: Pipeline Press
Wells Fargo's continuing saga continues with the resignation of its CEO Tim Sloan over opening accounts without customer's permission. "Fortunately" this time it was not for mortgage-related issues, and Allen Park, Wells' SVP and general counsel, steps in temporarily until a CEO from outside the company is found. Wells recently awarded Sloan a 5 percent pay raise, to $18.4 million a year. Speaking of comp, NASA scientists will pay you $19,000 to stay in bed two months. Comp is relative, and originators around the country are seeing their pay, and jobs, change. (The latest STRATMOR blog is, "Changes in the role of the LO and Their Compensation." ) Lastly, do you pay your employees in old-fashioned dollars? In Japan (not exactly known for its thriving...(read more)Posted To: MND NewsWire
As the Senate Banking Committee wound up its second day of hearings on Chairman Mike Crapo's (R-ID) outline for housing finance reform the White House issued its own memorandum. In a memo addressed to all cabinet members and the heads of several housing related agencies, the President laid out the recent history of the system including the conservatorship of Fannie Mae and Freddie Mac (the GSEs) and the Treasury's involvement in supporting them during the housing crisis. It then says it is time for the country to reform the system "to reduce taxpayer risks, expand the private sector's role, modernize government housing programs, and make sustainable home ownership for American families our benchmark of success." The White House memo differs from the Crapo outline in that its recommendations...(read more)