Below is a collection of articles, news, and announcements associated with our industry.

Posts Tagged ‘MBSQuoteline’

Special Update: Yellen Speech

Monday, March 31st, 2014

In a speech this morning, Fed Chair Yellen said that Fed officials widely share the view that further improvement in the labor market is needed before the Fed should begin to raise the fed funds rate.  According to Yellen, the US economy is still “considerably short” of the Fed’s goals.  She emphasized several measures indicating that considerable slack remains in the labor market.  The labor force participation rate remains low by historical standards.  A lot of people who could be working have become discouraged by their lack of success in finding a job and have stopped trying.  Seven million people are working part-time, and many of them would prefer to be working full-time.  A large number of people have been unemployed for six months or more, which looks bad when applying for jobs.  The JOLTS data shows that few people are quitting their jobs voluntarily.  When the labor market is stronger, people typically are more willing to risk seeking better opportunities.  Finally, wage gains have been small.  Yellen’s comments suggested that the Fed may wait longer than expected to raise the fed funds rate, which lifted stocks and had little lasting impact on MBS.

Share

Special Update: Subcommittee Considers Impact of ATR/QM

Wednesday, January 15th, 2014

The Ability-to-Repay (ATR) and the Qualified Mortgage (QM) rules are in effect as of January 10. It seems a little late, but yesterday a Subcommittee of the House Financial Services Committee held hearings to consider how the new rules will harm current and prospective homeowners. Representatives from the lending industry spoke about the limiting effect these rules will have on credit availability, especially on credit for low to moderate income borrowers. Committee members are considering proposed new laws to modify these rules.

Share

Special Update: GSE Fee Increases to be Delayed

Monday, December 23rd, 2013

Over the weekend, incoming FHFA Director Mel Watt stated that as soon as he is sworn in, he intends to delay the implementation of the loan-fee increases as were recently announced by outgoing Director Edward DeMarco.  It is believed that the delay will cover increases to both the guaranty fee and the loan level price adjustments.  It was not clear if Watt’s announcement meant he will also delay DeMarco’s planned elimination of the .25% Adverse Market Delivery Charge (for all but four states).  Watt said he needs time to “evaluate fully the rationale for the plan”.

Share

Special Update: Freddie Mac Weekly Survey

Thursday, November 21st, 2013

Freddie Mac reported that average mortgage rates fell in the week through November 21, with 30-yrs hitting 4.22%, from 4.35% the prior week. While the survey results are released on Thursday, the timing of the data collection means that the data better reflects changes from Monday to Monday or Tuesday to Tuesday than Thursday to Thursday each week. The Primary Mortgage Market Survey (PMMS) is sent on Monday with a response due back by Wednesday. Most responses are completed and submitted on Monday or Tuesday. The responses are averaged and the results are released on Thursday. The survey results, therefore, reflect the average rate and points borrowers were being offered on Monday and/or early Tuesday. Changes in the market since Monday/Tuesday can make the published data misleading when compared to rates and points actually being offered on Thursday. This week, mortgage rates have increased substantially since the survey period earlier in the week. If the survey were conducted this morning, the results for 30-yr rates would show an increase of about 5 basis points from last Thursday.

Share

Special Update: What Will the Fed Do?

Tuesday, September 17th, 2013

What is likely to happen to mortgage rates tomorrow after the Fed statement is released? The best answer is that it will be extremely volatile. The majority view is that the Fed will begin to taper its bond purchase program, but the reaction in the mortgage market will depend on the details. The first question is the size of the reduction. Investors expect the Fed to cut its monthly purchases from $85 billion to around $70 billion. It is also uncertain how the reduction will be split between MBS and Treasuries. We would not be surprised if the Fed cut only Treasury purchases and left MBS purchases unchanged, since several Fed officials have stated that MBS purchases provide a greater boost to the economy than Treasury purchases. In addition, it will be important to hear how the Fed plans to determine future reductions. Of course, there is no guarantee that the Fed will announce a taper on Wednesday at all. Investors have taken positions based on their expectations for the Fed statement, and there likely will be a large reaction tomorrow afternoon following its release.

Share

Special Update: Fed Statement Little Changed

Wednesday, July 31st, 2013

There was very little change in today’s Fed statement from the prior statement released on June 19. Investors viewed this as good news for MBS, since the most likely potential changes would have been negative for MBS. For example, some investors thought that the Fed would provide more concrete guidance on the timing to begin to taper its bond purchases. Instead, by avoiding specifics, Fed officials left the timing more open-ended. A decline in the quantity of Fed bond purchases will be negative for MBS.

 The primary change to the statement was the Fed’s description of the economy. The statement said that the economy is growing at a “modest” pace, while the last statement said that the pace of economic growth was “moderate”. The statement noted that Fed officials expect inflation to rise moderately over the medium term, but that there is a risk that it will decline to undesirable levels. The consensus view is still that the Fed will begin to taper its bond purchases in September, unless economic growth weakens significantly. Friday’s Employment report will be one of the major upcoming data points which will influence future Fed policy.

Share

Special Update: MBSQuoteline New Features Available

Tuesday, July 30th, 2013

MBSQuoteline is pleased to announce two new features to its real-time mortgage market information service.  These new features will significantly enhance its value to secondary marketing professionals. 

Ginnie Mae II 30 yr mortgage-backed securities (MBS) prices are now available.  With the vast majority of all newly issued Ginnie Mae MBS now being Ginnie Mae IIs, this new feature will be extremely helpful. 

In addition, MBSQuoteline now provides three forward months of Fannie Mae, Freddie Mac, and Ginnie Mae I TBA prices.  Two forward months of prices are standard with a subscription to MBSQuoteline, but at times you really need to have the third month’s prices. 

These two additional features farther separate MBSQuoteline from its competition as the most complete, most affordable service for those in secondary marketing. 

To learn more about MBSQuoteline go to www.mbsquoteline.com to start a free trial or call us at (512) 343-0003 to activate these two add-on features.

Share

In The News: Measurement of GDP is Revised

Tuesday, July 30th, 2013

Gross Domestic Product (GDP) is the broadest measure of economic growth. The major components of GDP include private consumption, gross investment, government spending, imports, and exports. To keep up with the times, the government adjusts its measurements periodically, but the changes usually are minor. This year, however, will see the most signficant reclassification since 1999. Beginning with tomorrow’s second quarter report, GDP will now include spending on research and development, some forms of entertainment, transfer fees related to home sales, and a new treatment of pensions. The changes are estimated to add about $400 billion to the size of the roughly $16 trillion US economy. Prior data will be revised to reflect the changes all the way back to 1929. As a result, the changes are not expected to have much impact on the growth rate of the economy.

Share

Special Update: Freddie Mac Weekly Survey

Thursday, June 27th, 2013

Freddie Mac reported that average mortgage rates rose in the week through June 27, with 30-yrs hitting 4.46%, from 3.93% the prior week. This was the largest weekly increase in 26 years. While the survey results are released on Thursday, the timing of the data collection means that the data better reflects changes from Monday to Monday or Tuesday to Tuesday than Thursday to Thursday each week. The Primary Mortgage Market Survey (PMMS) is sent on Monday with a response due back by Wednesday. Most responses are completed and submitted on Monday or Tuesday. The responses are averaged and the results are released on Thursday. The survey results, therefore, reflect the average rate and points borrowers were being offered on Monday and/or early Tuesday. Changes in the market since Monday/Tuesday can make the published data misleading when compared to rates and points actually being offered on Thursday. This week, mortgage rates have improved substantially since the survey period earlier in the week. If the survey were conducted this morning, the results for 30-yr rates would be 20 to 25 basis points lower.

Share

Special Update: 2.5% 30 Yr Agency MBS prices now available!

Tuesday, November 20th, 2012

Are any of you looking for 2.5% 30 yr Agency MBS prices?  MBSQuoteline now makes them available as part of its mortgage market information service.    Not only can you see live MBS prices at any time during the day,  you can see the path of price movement throughout the day.  The prices are conveniently available on your desk top, as well as your smartphone.  Go to www.mbsquoteline.com to start a free trial to see how this information and more can be a benefit to you.

Share