Posts Tagged ‘mbs’

MBS RECAP: 4/11/2011...(read more)

Although MBS have backed off a bit in terms of outperforming Treasuries, both have gained enough to reach the best levels of the day as stocks sink slightly lower past negative levels. In terms of 10yr note yields, we initially bounced off the 3.57 target, broke lower, restested it as support and are continuing to rally, currently at 3.562. FNCL 4.5's are 6 ticks up on the day at 101-12+ and S&P's are almost 3 points at 1325.39. The gains in MBS are enough for some of the earlier repricers to re-issue improved rate sheets. We've already seen one reprice for the better and will see more the longer these levels persist or the more the rally extends....(read more)

MBS MID-DAY: 4/11/2011...(read more)

Despite MBS continuing to outperform Treasuries, the latter has fallen to it's weakest levels of the day with yields now up 1.31 bps in 10yr notes to 3.596. Although this is an anticipated support level, MBS are off their best levels of the day with FNCL 4.5's now up only 1 tick on the day at 101-08....(read more)

Consumer borrowing costs lost a very small amount of ground today.  Mortgage rates are still about aggressive as they've been since late January though....

CURRENT MARKET: The "Best Execution" conventional 30 year fixed mortgage rate is still 4.875%.  For those looking to permanently buy down their rate to 4.75%, this quote carries higher closing costs. The upfront cost of permanently buying down your rate  to 4.75% is not worth it to many applicants, we would generally only advise the permanent floatdown if you plan to keep your new mortgage outstanding for longer than the next 10 years.  Ask your loan officer to run a breakeven analysis on any origination points they might require to cover permanent float down fees. On FHA/VA 30 year fixed "Best Execution" is still 4.75%. 15 year fixed conventional loans are best priced at 4.125%. Five year ARMS are best priced at 3.50%.

 

GUIDANCE:  The failure of the bond market to extend its recent rally really serves to drive home a point we've been harping on for several weeks now: WE'RE STUCK.  If you're floating, you're doing so for marginal improvements in UPFRONT COSTS ....not RATE. See disclaimer below please. When it comes to the outlook for lower rates in the months ahead, we're still optimistic about that expectation but realize it will require a steady drip of bond friendly (economy unfriendly) news and events for that call to come true.  In the short-term, or at least until "the levy breaks" or all hell breaks loose around the planet, we don't expect lender rate quotes to look much better than they do right now.  The following comment hints at the commitment required from bond market investors if we're going to see mortgage rates to move notably lower.

From: Mortgage Pricing Hits Wall. Loan Demand Declines...

"Lenders have moved the Best Execution 30-year fixed note rate as low as they possibly can without drastically altering their pipeline hedging strategies.  This is a factor of what production mortgage-backed security coupon is most liquid in the secondary mortgage market. On conventional loans, the 4.50 percent MBS coupon is the hedging vehicle of choice for lock desks.  Home loans with note rates between 4.875 and 5.25% are generally used to fill 4.50 percent MBS coupon trades. Until MBS investors demonstrate sustainable demand for 4.00 percent 30-year fixed MBS coupons, lenders will not find it economically efficient to quote 4.75 percent note rates without expensive permanent buydown costs. From that perspective, if you are floating a conventional home loan interest rate, you should not be expecting further improvements to your actual rate in the short term. If the bond market recovery rally continues, closing costs will improve, but on the whole, it will take a sustained move higher in 4.00 percent MBS coupon prices for Best Execution to dip below 4.875 percent."

Plain and Simple: We're going to need a sustained bond market rally to see "Best Execution" break through the 4.875% barrier. Otherwise this is as good as it gets.

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Average Mortgage Rates   TODAY YESTERDAY CHANGE 30 Yr FRM 4.93 4.93 0.00% 15 Yr FRM 4.19 4.18 0.01% FHA 30 Year 4.75 4.74 0.01% Jumbo 30 Year 5.65 5.63 0.02% 5/1 Yr ARM 3.64 3.62 0.02% » View Current Mortgage Rates » Compare Mortgage Rates Updated: 3/2/11 4:19 PM Mar 2, 2011 5:23PM Mortgage Rates: Stalled Positive Progress It was another volatile day in the mortgage market. Don't let that distort your perspective of reality though. When looking at the behavior of mortgage rates on a longer timeline, loan pricing has steadily improved over the past two/three-weeks. But positive progress has officially stalled out and now we're bouncing around a relatively tight range. We've gone sideways..... The session started with lenders offering improved loan pricing vs. yesterday's quotes, but as the day wore on mortgage-backed... Read More More From MND MBS RECAP: 3/2/2011 Beige Book Recap. Reprices Possible as MBS Get Sloppy MBS MID-DAY: Stock Lever Tempers MBS Rally The Day Ahead: ADP Jobs Data, Bernanke Encore, Beige Book Mortgage Rates: Unchanged After Late Day Reprices MBS RECAP: Losses Recovered. Reprices Reported MBS Stabilize as Stocks Lose Steam. Reprice Target Near View: Front Page | Headline Viewer Video News Fed's Beige Book Buffett's Bullish Housing Call War on E. Warren? »View More Video News Follow Rates Daily On: RSS Twitter Facebook Mobile Apps Helpful Links Current Mortgage Rates Daily Rate Movements Historic Mortgage Rates Tools Bank Strength Ratings Mortgage Rate FAQ's Mortgage Calculator Forward Know someone who might be interested in this email? Forward it. Subscribe Would you like to receive our Daily Rate Update by Email? Subscribe Now. Front Page | Headline Viewer | Video | Forums | Q&A | Market Data | Rates | Marketplace : Consumer - Industry © 2011 Brown House Media, Inc. All rights reserved. Brown House Media Inc. - 19706 One Norman Blvd - Cornelius, NC 28031 This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments.  Rates and terms are subject to change without notice.

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The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 25, 2011. The results do not include an adjustment for the Presidents' Day holiday.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.84 percent from 5.00 percent, with points increasing to 1.30 from 0.96 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the third consecutive weekly decrease for the 30-year contract rate.  The effective rate also decreased from last week.

The Refinance Index decreased 6.5 percent from the previous week.  The four week moving average is down 2.7 percent. The refinance share of mortgage activity decreased to 64.9 percent of total applications from 65.7 percent the previous week. The seasonally adjusted Purchase Index decreased 6.1 percent from one week earlier.

"A wall has been hit in loan pricing" says MND's Managing Editor Adam Quinones. "Lenders have moved the Best Execution 30-year fixed note rate as low as they possibly can without drastically altering their pipeline hedging strategies.  This is a factor of what production mortgage-backed security coupon is most liquid in the secondary mortgage market. On conventional loans, the 4.50 percent MBS coupon is the hedging vehicle of choice for lock desks.  Home loans with note rates between 4.875 and 5.25% are generally used to fill 4.50 percent MBS coupon trades. Until MBS investors demonstrate sustainable demand for 4.00 percent 30-year fixed MBS coupons, lenders will not find it economically efficient to quote 4.75 percent note rates without expensive permanent buydown costs. From that perspective, if you are floating a conventional home loan interest rate, you should not be expecting further improvements to your actual rate in the short term. If the bond market recovery rally continues, closing costs will improve, but on the whole, it will take a sustained move higher in 4.00 percent MBS coupon prices for Best Execution to dip below 4.875 percent."

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Average Mortgage Rates   TODAY YESTERDAY CHANGE 30 Yr FRM 5.00 5.01 -0.01% 15 Yr FRM 4.12 4.15 -0.03% FHA 30 Year 4.82 4.85 -0.03% Jumbo 30 Year 5.70 5.71 -0.01% 5/1 Yr ARM 3.65 3.65 0.00% » View Current Mortgage Rates » Compare Mortgage Rates Updated: 2/23/11 5:45 PM Feb 23, 2011 5:44PM Mortgage Rates: Steady Despite Weak Treasury Auction Mortgage rates continue to enjoy a period of relief after rising rapidly in recent weeks. The extent to which this relief period matures into a more extended and stable mortgage rate rally is still undecided, but at least now it's possible. Those looking to stay as protected as possible even during potentially more favorable times still need to keep an eye out for the risks that crop up along the way. We discuss the current risks in the "New Guidance" section below. CURRENT MARKET : The "Best Execution... Read More More From MND $35bn 5s: Bidders Pass on Expensive Issue. Rates Test Support MBS Rally Targets: Battling Profit Takers and Short Sellers MBS RECAP: 2/23/2011 MBS MID-DAY: Near Intraday Highs The Day Ahead: Existing Home Sales, $35 Billion 5s, Fed Speak Mortgage Rates: Best Execution Improves to 5.00% Directional MBS Alert: Bond Market Builds Case for Lower Rates View: Front Page | Headline Viewer Video News President Obama Statement on Libya Pain at the Pump BofA's Meyer Says U.S. Home Prices to `Fall Further' »View More Video News Follow Rates Daily On: RSS Twitter Facebook Mobile Apps Helpful Links Current Mortgage Rates Daily Rate Movements Historic Mortgage Rates Tools Bank Strength Ratings Mortgage Rate FAQ's Mortgage Calculator Forward Know someone who might be interested in this email? Forward it. Subscribe Would you like to receive our Daily Rate Update by Email? Subscribe Now. Front Page | Headline Viewer | Video | Forums | Q&A | Market Data | Rates | Marketplace : Consumer - Industry © 2011 Brown House Media, Inc. All rights reserved. Brown House Media Inc. - 19706 One Norman Blvd - Cornelius, NC 28031 This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments.  Rates and terms are subject to change without notice.

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Average Mortgage Rates   TODAY YESTERDAY CHANGE 30 Yr FRM 5.08 5.10 -0.02% 15 Yr FRM 4.22 4.25 -0.03% FHA 30 Year 4.91 4.94 -0.03% Jumbo 30 Year 5.76 5.80 -0.04% 5/1 Yr ARM 3.69 3.70 -0.01% » View Current Mortgage Rates » Compare Mortgage Rates Updated: 2/14/11 5:10 PM Feb 14, 2011 4:22PM Mortgage Rates: Still on a Ledge. Still Defensive We watched defensively as mortgage rates teetered on a ledge last week. We were searching for an indication that "snowball selling" had been avoided before offering a new directional guidance. No sign was shared by the secondary market but we did manage to back a bit further away from the mortgage rate ledge heading into the weekend. Plain and Simple : Snowball selling in the secondary mortgage market forces lenders to reprice their rate sheets for the worse. At first the impact is only higher closing... Read More More From MND Lack Of Volatility Prompts Reprices For The Better MBS RECAP: 2/14/2011 MBS MID-DAY: Positive Progress Seen The Week Ahead: Three Busy Days of Data Mortgage Rates: Say No to Snowballing! Production MBS End Week on Good Note MBS RECAP: 2/11/2011 View: Front Page | Headline Viewer Video News Obama Unveils Budget Realty Check: Mortgage Deduction & Energy Assistance Lockhart Says Dissolving Freddie, Fannie Is Realistic »View More Video News Follow Rates Daily On: RSS Twitter Facebook Mobile Apps Helpful Links Current Mortgage Rates Daily Rate Movements Historic Mortgage Rates Tools Bank Strength Ratings Mortgage Rate FAQ's Mortgage Calculator Forward Know someone who might be interested in this email? Forward it. Subscribe Would you like to receive our Daily Rate Update by Email? Subscribe Now. Front Page | Headline Viewer | Video | Forums | Q&A | Market Data | Rates | Marketplace : Consumer - Industry © 2011 Brown House Media, Inc. All rights reserved. Brown House Media Inc. - 19706 One Norman Blvd - Cornelius, NC 28031 This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments.  Rates and terms are subject to change without notice.

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Average Mortgage Rates   TODAY YESTERDAY CHANGE 30 Yr FRM 5.10 5.13 -0.03% 15 Yr FRM 4.25 4.32 -0.07% FHA 30 Year 4.94 4.98 -0.04% Jumbo 30 Year 5.80 5.85 -0.05% 5/1 Yr ARM 3.70 3.74 -0.04% » View Current Mortgage Rates » Compare Mortgage Rates Updated: 2/11/11 6:00 PM Feb 11, 2011 2:45PM Mortgage Rates: Say No to Snowballing! A 7-week mortgage rates range was finally broken last Friday. The directional move that took place afterward was not fence-sitter friendly. "Best Execution" home loan borrowing costs rose rapidly. "Teetering on a ledge" <--- That's how we would describe this week in the primary mortgage market. WHAT ARE WE TEETERING ON? WHAT'S AT STAKE? Potentially another 0.25% to 0.375% move higher in "Best Execution" mortgage rates. That's right. Right after we just experienced a frustratingly large spike last... Read More More From MND Production MBS End Week on Good Note MBS RECAP: 2/11/2011 MBS MID-DAY: Near Intraday Highs Mortgage Rates: Setback Suffered. Bleeding Still Stopped The MBS Ledge: Are We Still Teetering? What's at Stake Here? Mortgage Market Buzzing with Activity On All Fronts MBS RECAP: Positive Progress Lost View: Front Page | Headline Viewer Video News Geithner on GSE Reform Gearing Up a Plan for GSEs Future of Mortgage Finance »View More Video News Follow Rates Daily On: RSS Twitter Facebook Mobile Apps Helpful Links Current Mortgage Rates Daily Rate Movements Historic Mortgage Rates Tools Bank Strength Ratings Mortgage Rate FAQ's Mortgage Calculator Forward Know someone who might be interested in this email? Forward it. Subscribe Would you like to receive our Daily Rate Update by Email? Subscribe Now. Front Page | Headline Viewer | Video | Forums | Q&A | Market Data | Rates | Marketplace : Consumer - Industry © 2011 Brown House Media, Inc. All rights reserved. Brown House Media Inc. - 19706 One Norman Blvd - Cornelius, NC 28031 This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments.  Rates and terms are subject to change without notice.

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