Mortgage and Finance

Mortgage News Daily

Posted To: MND NewsWire

Housing starts continued their see-saw pattern in December, rising 11.3 percent from November when they had fallen significantly after a sensational October. The increase this time, however, was due solely to a surge in multi-family construction. Meanwhile, housing permits turned in another lackluster performance. The U.S. Census Bureau and the Department of Housing and Urban Development reported that residential housing starts were at a seasonally adjusted annual rate of 1,226,000 in December, up from a revised rate of 1,102,000 in November. The November estimate was originally reported at a rate of 1,090,000. The December estimate put housing starts up 5.7 percent from the level in December 2015. Analysts polled by Econoday had expected starts in the range of 1,100,000 to 1,275,000 with a...(read more)

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1/19/2017 9:04:22 AM

Posted To: Pipeline Press

How has housing changed in the last 100 years? It’s easy to see when a “vertical flight” is put together, and Trulia posted current listings that were built in every decade that are pretty interesting to skim through and look at styles & pricing. Another day, another settlement . In this instance JPMorgan Chase has agreed to pay $55 million to settle an investigation into whether it charged thousands of African-American and Hispanic borrowers higher interest rates on mortgages than white customers. The discriminatory loans were originated from at least 2006 to late 2009. The mortgages were made by independent brokers and then funded by JPMorgan, and Chase was charged with violating the U.S. Fair Housing Act and the Equal Credit Opportunity Act JPMorgan released a statement...(read more)

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1/19/2017 8:25:02 AM

Posted To: MBS Commentary

When it comes to defining the recent range, there are several candidates for the upper and lower boundaries. When 10yr yields were under 2.40%, that was the best boundary to watch. A break over 2.40% suggested 2.42% was the next line of defense. And finally, 2.44% serves as the last bastion for 2017's sideways range. We were very close to it by the end of yesterday, and we're currently trading above it as the glut of data and events roll out. In addition to this morning's economic data, markets will perhaps be most keenly focused on the press conference with European Central Bank (ECB) President Mario Draghi. The notion of of ECB tapering is still a hot button for global financial markets and investors are looking for any clues as to how that decision is evolving. MBS Pricing Snapshot...(read more)

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1/19/2017 7:34:31 AM

Posted To: MBS Commentary

After flirting with a break of the lower end of 2017's sideways range yesterday, bond traders clearly decided " now's not the time. " There's precious little to hang one's hat on when it comes to justifying overnight weakness any other way. That wasn't too big a deal as it left 10yr yields to start the domestic session around 2.36+. Despite a modest amount of weakness after this morning's first round of economic data, yields continued to hold WELL within the recent range--never even breaking into the 2.38's. It wasn't until the afternoon hours that bonds began to slide in a slightly more disconcerting way. EVEN THEN, we were still able to say the range remained and that traders were likely just making some defensive bets ahead of Yellen's 3pm speech...(read more)

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1/18/2017 4:20:01 PM

Posted To: Mortgage Rate Watch

Mortgage rates moved sharply higher today , more than erasing yesterday's improvement. In fact, in one fell swoop, rates essentially moved from the bottom of 2017's range to the top! There are a few caveats though. First, 2017's range has been fairly narrow. Beyond that, this is only the 3rd week of the year. As always, the notion of "abruptness" is subjective and relative. In the bigger picture, rates are still in much better shape than late December levels. In the more immediate picture, today's losses would make for a big adjustment to yesterday's quotes. In some cases, borrowers might be looking at the next eighth of a percent higher in rate. Several lenders have moved up to quoting top tier 30yr fixed rates of 4.25% whereas 4.125% had been the norm. Loan Originator Perspective The good...(read more)

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1/18/2017 3:42:00 PM

Posted To: MND NewsWire

The Housing Market Index (HMI) backed down a bit from its post-election surge in January, dropping 2 points to a composite reading of 67. The National Association of Homebuilders (NAHB)/Wells Fargo index, which measures builder confidence in the new home market, had gained 7 points (now revised down to 6) in December to reach its highest level since July 2005. According to NAHB Chairman Granger MacDonald, "Builders begin the year optimistic that a new Congress and administration will help create a better business climate for small businesses, particularly as it relates to streamlining and reforming the regulatory process." "NAHB expects solid 10 percent growth in single-family construction in 2017, adding to the gains of 2016," said NAHB Chief Economist Robert Dietz. "Concerns going into the...(read more)

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1/18/2017 9:39:01 AM

Posted To: Pipeline Press

The mortgage world is full of acronyms. Some refer to Finance of America as “FOAM,” for example. There are new ones every year, making it hard for old-timers in lending to keep track. Speaking of which, I’m not old, but then again, does anyone ever think they are? Along those lines, if anyone is curious, the current HMDA data (another acronym) doesn't capture any info on the borrower’s age but rest assured it will be gathered for the 2018 HMDA data reporting. Let’s hope it shows a nice range for the folks at the CFPB to see. Deutsche Bank signed a $7.2 billion settlement with the U.S. Department of Justice over its sale of mortgage securities in the run-up to the 2008 financial crisis. What will the government do when it doesn't have this income from settlements...(read more)

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1/18/2017 8:07:23 AM

Posted To: MBS Commentary

Although yields were able to close at the lowest levels in more than a month yesterday, bonds continued to trade in the same intraday range (roughly 2.30-2.44% in terms of 10yr yields). Today begins with that range being firmly reinforced as yields are well off the lows (currently up to 2.37%) ahead of this morning's economic data. There are several reports on tap throughout the morning. First up is the Consumer Price Index (CPI) for December. With inflation increasingly back in the spotlight after years of living in the shadows, every major inflation-related report is a potential tape bomb. CPI is definitely one of the more significant inflation metrics. The median forecast calls for steady month-over-month core inflation, and a 0.1% increase in year-over-year core inflation. Industrial...(read more)

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1/18/2017 7:29:13 AM

Posted To: MND NewsWire

Mortgage applications rose on a seasonally adjusted annual basis during the week ended January 13. The Mortgage Bankers Association said its Market Composite Index, a measure of applications volume, increased by 0.8 percent compared to the week ended January 6. On a non-adjusted basis, the volume was up 29 percent. The previous week's number included an adjustment to account for the New Year's Day holiday. The slight increase in applications volume was driven by refinancing . That index climbed by 7.0 percent from a week earlier. The share of applications which were for refinancing grew from 51.2 percent of the total to 53.0 percent. The seasonally adjusted Purchase Index decreased 5 percent week-over-week while unadjusted it was up 25 percent. Purchase mortgage applications were down 1 percent...(read more)

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1/18/2017 7:19:36 AM

Posted To: MBS Commentary

In some regards, bonds had their best day of the year today. The outright gains weren't quite as big as Jan 5th or 9th, but closing yields were the lowest since Nov 29th! Much of today's bond market positivity owes itself to the 3-day weekend. Specifically, it now looks like much of last week's Thu/Fri weakness was due to traders getting out of the market ahead of the 3-day weekend. Of course that leaves traders to get back into the market today, which was clearly the case based on the 7bp gain in 10yr yields. UK Prime Minister Theresa May's speech was a focal point for overseas markets early this morning . Bonds improved heading into the speech (on the expectation for austere Brexit info) and weakened afterward (May was less austere than expected). Weakness continued through...(read more)

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1/17/2017 4:48:17 PM

Reuters Business News

Reuters: Business News

SINGAPORE (Reuters) - Caution was the name of the game in financial markets on Friday ahead of U.S. President-elect Donald Trump's inauguration later in the day, with Asian stocks and the dollar pulling back and U.S. Treasury yields hovering near their highest close this year.

1/19/2017 7:01:24 PM

PALO ALTO, Calif. (Reuters) - With monetary policy still modestly accommodative, the U.S. central bank should continue to raise interest rates slowly to keep jobs plentiful and inflation low, Federal Reserve Chair Janet Yellen said on Thursday.

1/19/2017 7:03:02 PM

(Reuters) - International Business Machines Corp reported its 19th straight quarter of declining revenue, but forecast full-year earnings above Wall Street estimates due to growth in newer areas such as cloud-based services and analytics.

1/19/2017 5:46:42 PM

BEIJING (Reuters) - Boosted by higher government spending and record bank lending, China is expected to report on Friday that its economy grew by a steady 6.7 percent in the fourth quarter, giving it a solid tailwind heading into what is expected to be a turbulent 2017.

1/19/2017 5:08:30 PM

NEW YORK (Reuters) - A month ago, the dollar and stock markets were riding high as investors bet that the Trump administration, together with the Republican-controlled Congress, would usher in an era of lower taxes, more government spending and looser regulations.

1/19/2017 3:49:48 PM

TOKYO (Reuters) - Japan's struggling Toshiba Corp has started the process to sell a minority stake in its flash memory chip business worth several billion dollars, and funds Permira and Bain Capital have expressed interest, Kyodo news agency reported.

1/19/2017 7:22:51 PM

(Reuters) - Insurance broker Aon Plc is in advanced talks to sell its employee benefits outsourcing unit to buyout firm Clayton Dubilier & Rice LLC for nearly $4.5 billion, people familiar with the matter said on Thursday.

1/19/2017 9:54:58 AM

(Reuters) - American Express Co posted a lower-than-expected quarterly profit on Thursday as the credit card issuer boosted spending on marketing and promotion to fend off rising competition.

1/19/2017 5:14:00 PM

TOKYO (Reuters) - Shares in Japan's Toshiba Corp extended losses on Friday, weighed down by concern over a potentially bigger-than-expected $6 billion writedown triggered by cost overruns at its U.S. nuclear business.

1/19/2017 6:26:45 PM

(Reuters) - Viacom Inc's Paramount Pictures will receive a $1 billion cash investment from two Chinese film companies, Shanghai Film Group and Huahua Media, giving the U.S. studio needed cash and stability as it attempts to grow.

1/19/2017 5:48:09 PM