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Mortgage and Finance


Mortgage News Daily

Posted To: MBS Commentary

GDP was +0.8 vs +0.9 forecast this morning Consumer Sentiment was 94.7 vs 95.4 Inflation expectations were the lowest since 2010 But markets didn't trade any of that data Anyone who was still working, was waiting to see if Yellen would say something She did, and the 3 people still working sold bonds These pre-holiday half-days are fairly pointless , and only really exist as a courtesy to the folks who need access to financial markets for operational reasons. To a lesser extent, they also provide another day for economic data releases without needing to reschedule them, potentially clogging up the calendar on a more worthwhile day. Harvard and Yellen made markets wait until half an hour before the early close to find out if she would say anything about monetary policy. She did. It was generic...(read more)

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5/27/2016 12:05:38 PM

Posted To: Mortgage Rate Watch

Mortgage rates were sideways to slightly lower today, depending on the lender. Financial markets closed early for Memorial Day weekend, and will be fully closed on Monday. As such, lenders won't be updating rate sheets again until Tuesday. Today's rate sheets aren't too terribly different from yesterday's. Most lenders are unchanged and a few are offering just slightly lower costs for the same "note rates" seen yesterday. The most prevalently-quoted conventional 30yr fixed rate continues to be 3.75% on top tier scenarios, but there are several lenders at 3.625%. The financial markets that underly mortgage rate movement are in a tricky spot at the moment. Investors are weighing the possibilities of a Fed rate hike in June or July. Although mortgage rates don't move in lock-step with the Fed...(read more)

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5/27/2016 10:48:00 AM

Posted To: Pipeline Press

Do you think your company’s computer system is immune from hacking? It’s not a matter of “if” but “when” – just ask Equifax about its data breaches hitting the press . Not only that, but one can buy practically anything on the internet: hackers are selling 117mm LinkedIn passwords on the web. Hackers will likely use such data to mine it and then gain access to email and bank accounts (because so many people reuse passwords for their various accounts). Change your passwords regularly (like from "Passwerd" to "abc1234") and don't use the same one for every account. The largest bank in Africa, Standard Bank Group Ltd., reports it has lost $19 million due to a sophisticated attack carried out in Japan: thieves forged 1,600 cards and withdrew money from...(read more)

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5/27/2016 8:01:34 AM

Posted To: MBS Commentary

GDP at 8:30am won't matter Consumer Sentiment at 10am won't matter Yellen at 10:30am (and 1:15pm) won't matter All of the above--but especially Yellen--can matter next week As I like to point out from time to time, Wall Street and bond trading desks at the CME in Chicago are s taffed by human beings . With all of the press devoted to algorithmic trading in recent years, and with simple deductive reasoning in an age of ever-increasing digital technology, it's all too tempting to assume that trading can easily be handled by big racks of low-latency servers and sophisticated software programs. But that's just not the way it works . While it's true that algorithms and software play a huge role in financial markets, these digital helpers are like airplanes. They help move...(read more)

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5/27/2016 6:27:53 AM

Posted To: MBS Commentary

Early month-end trading environment provided constant support Strong Durable Goods headline didn't matter gains were linear into the noon hour, then leveled off, and came back after the 7yr Auction 10yr yield ended 4.2bps lower at 1.83 Bonds didn't do much through the overnight session, but so-called "duration needs" became apparent right as domestic traders sat down for the day. "Duration needs" refers to bond traders' need to own a certain mix of bonds that satisfy the "duration" requirement of an index that their investors expect them to hit. In other words, if my portfolio has some money allocated to bond markets based on a certain index, and if that index is expressed in a duration of 7.5 years, I need to own bonds that average out to a 7.5-year...(read more)

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5/26/2016 3:59:13 PM

Posted To: Mortgage Rate Watch

Mortgage rates moved modestly lower today. Given that rates had spiked last Wednesday and haven't moved too much since then, today's improvement was enough to get rates to the best levels seen since last Tuesday. That might sound odd or ironic in light of today's widely-circulated mortgage rate data from Freddie Mac. Freddie says that rates rose rather sharply, but that's to-be-expected given the report's methodology (which essentially provides a snapshot of Monday and Tuesday's rates). In other words, the rates seen at the beginning of this week were definitely higher than those seen at the beginning of last week. But last week's damage was already done by Wednesday afternoon. Since then, we've been sideways to slightly lower. Loan Originator Perspective " We seem to be stuck in a 1.8 range...(read more)

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5/26/2016 3:23:00 PM

Posted To: MND NewsWire

Home prices appreciated in the first quarter of 2016 by 1.3 percent compared to the fourth quarter of 2015. The Federal Housing Finance Agency (FHFA) said this was the 19 th straight quarter its Housing Price Index (HPI) had posted a gain. The quarterly index was 5.7 percent higher than that for the first quarter of 2015, and FHFA noted that prices of other goods and services were virtually unchanged over that same period, making the inflation adjusted annual price increase 5.6 percent. The month over month change in the HPI was 0.7 percent (February to March), 0.2 percentage points higher than the analysts' consensus estimate gathered by Econoday. On an annual basis prices were up a strong 6.1 percent over the 12-month period. FHFA's home price estimates are calculated using sales information...(read more)

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5/26/2016 8:48:32 AM

Posted To: MND NewsWire

This morning's strong pending home sales report was the third upbeat April housing indicator. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) a forward looking indicator based on home purchase contract signings, was up 5.1 percent in April to 116.3 while the March PHSI was revised up from 110.5 to 110.7. It was the third consecutive month that the Index had gained ground and it brought pending sales to their highest level in a decade. The index gained 4.6 percent from April 2015 and was the 20 th consecutive year-over-year increase . The month over month change blew analysts' expectations out of the water. Econoday's poll put the high end of expectations at 1.2 percent with a consensus of 0.8%. The strong report follows a solid existing home sales report...(read more)

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5/26/2016 8:45:25 AM

Posted To: Pipeline Press

According to Reuters, the NY state financial regulator is gearing up to launch an investigation into the entire online lending industry . (The regulator has already been looking into LendingClub.) Never a good thing to hear your secretary say, "The NY Attorney General is holding for you on line 2." On a more serious note, the lending and banking industries continue to suffer from various regulators a) being afraid of the CFPB, and b) basically competing with each other to create rules where there were none before in an attempt to make a name for themselves. Of course the consumer bears the ultimate brunt of this. Yesterday I brought up the ignored or misunderstood topic of Section 342 in Dodd Frank . I took the opportunity to contact a handful of random of others on the forefront of this topic...(read more)

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5/26/2016 8:23:03 AM

Posted To: MND NewsWire

The nation's housing market continues to improve and the spring home buying season appears to be off to a strong start according to a Freddie Mac report released on Wednesday. The company's Multi-Indicator Market Index or MiMi now stands at 83.8, indicating a housing market that is on the outer range of its historic benchmark level of housing improvement. The MiMi improved 1.0 percent from February to March, had a three-month gain of 1.56 percent, and was up 7.23 percent year-over-year. In addition to the national increases six more metro areas and the State of Kentucky have moved within their benchmark ranges. MiMi monitors and measures the stability of the nation's housing market, as well as the housing markets of all 50 states, the District of Columbia, and the top 100 metro markets. The...(read more)

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5/26/2016 8:13:39 AM

Reuters Business News


Reuters: Business News

NEW YORK (Reuters) - Data on inflation and employment, two of the economic indicators most important to a "data-dependent" U.S. Federal Reserve are expected next week.

5/27/2016 6:14:47 PM

TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe plans to delay an increase in sales tax by two and a half years, a government official said on Sunday, as the economy sputters and Abe prepares for a national election.

5/28/2016 9:14:13 PM

CARACAS (Reuters) - German airline Deutsche Lufthansa AG said on Saturday it will temporarily suspend flights to Venezuela as of next month due to economic difficulties in the South American nation and problems converting local currency into dollars.

5/28/2016 4:01:48 PM

Monsanto Co President Brett Begemann uttered those words last week to a small group of investors and a Reuters reporter when asked how the world's largest seed company he helps lead might fit with German drugs and crop chemicals group Bayer AG.

5/28/2016 12:18:06 AM

WASHINGTON (Reuters) - The strike by Verizon Communications Inc workers will probably trim U.S. non-farm payroll growth in May by at least 35,000 jobs, a Labor Department report showed on Friday.

5/27/2016 12:16:17 PM

WASHINGTON (Reuters) - U.S. economic growth slowed in the first quarter although not as sharply as initially thought, as a surge in home building and steady inventory accumulation partially offset the drag from a steep decline in business investment.

5/27/2016 1:03:47 PM

WASHINGTON (Reuters) - Eight automakers said on Friday they are recalling more than 12 million U.S. vehicles for defective Takata air bag inflators, widening the largest-ever auto safety effort to more passenger-side devices.

5/27/2016 2:45:07 PM

(Reuters) - Sumner Redstone made clear on Friday that he is considering ousting Viacom's chief executive and the company's board of directors in the fierce power struggle between Redstone's family and company executives over control of the media empire.

5/27/2016 6:52:51 PM

NEW YORK (Reuters) - Verizon Communications Inc and unions representing nearly 40,000 wireline workers have reached a tentative deal "in principle" to end a strike that started April 13th, U.S. Secretary of Labor Thomas Perez said on Friday.

5/27/2016 2:41:03 PM

(Reuters) - New Jersey Governor Chris Christie on Friday signed into law a package of legislation that provides distressed gambling hub Atlantic City with immediate cash help but also a potential state takeover if the city cannot fix its finances.

5/27/2016 2:36:31 PM