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Google Commits $1 Billion to Bay Area Housing

  • Posted To: MND NewsWire

    If the rumors about housing in Silicon Valley are true, it is probably hard to recruit new employees if they fear they will have to live in an RV in WalMart's parking lot. Such a situation may have prompted Google to announce a $1 billion commitment to help provide more affordable housing in its backyard. Google CEO Sundar Pichai announced the investment in a blog post on Tuesday, saying it is the company's responsibility to be a good neighbor in the area where it originated 20 years ago and where it is one of the largest employers. Across the region, he said, "One issue stands out as particularly urgent and complex: housing. The lack of new supply, combined with the rising cost of living, has resulted in a severe shortage of affordable housing options for long-time middle and low income residents...(read more)

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    Thu, 20 Jun 2019 14:37:43 GMT

New Purchase/Renovation Loan Added to Freddie Mac Choices

  • Posted To: MND NewsWire

    Freddie Mac is announcing a new loan program to help address the need for affordable housing and encourage the renovation of older homes. The company says its new CHOICE Renovation loans will "provide homebuyers a flexible choice to purchase a home and finance the cost of renovations with a single-close mortgage, saving them both time and money." The mortgage is available immediately to all eligible lenders nationwide. "Research indicates a large number of older homes need repair and renovation, either to meet the needs of current owners or as a viable option for new homebuyers ," said Danny Gardner, Freddie Mac's Senior Vice President, Single-Family Affordable Lending and Access to Credit. "The CHOICE Renovation solution gives borrowers the opportunity to make improvements, renovations and...(read more)

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    Thu, 20 Jun 2019 14:17:11 GMT

Database Sales, Closing Costs Products; Lender-Related M&A; What's Moving Rates

  • Posted To: Pipeline Press

    “Enable” is such a vague, over-used tech term. The same with “repurpose.” But over the next 10 years Google is going to “repurpose” (aka, re-zone) a lot of land and plans to invest $1 billion to “enable” the development of 20,000 new homes in the San Francisco Bay Area, including more than 5,000 affordable housing units. Hope they throw in some mixed-use projects because the Bay Area doesn’t need more people driving somewhere. Speaking of growth, among the 15 cities or towns with the largest numeric population gains between 2017 and 2018, eight were in the South, six were in the West, and one was in the Midwest, per the U.S. Census Bureau. Phoenix was at the top of the list with an increase of 25,288 people, followed by San Antonio (20,824...(read more)

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    Thu, 20 Jun 2019 14:13:57 GMT

MBS Day Ahead: Strong Trend Intact After Fed Day

  • Posted To: MBS Commentary

    In the day just past, bonds were primarily concerned with reacting to the Fed announcement, press conference, and updated economic projections. Even though the Fed's median rate forecast for the end of 2019 remained unchanged, the average dropped from 2.49% to 2.17%. There were also a few verbiage changes in the announcement that paved the way for the Fed to cut rates in July if the economic reports justifies it. In the day ahead, bonds will attempt to add another day to the range breakout that began on Tuesday. Combined with yesterday's gains, the breakout suggests the trend channel highlighted in the chart below (yellow lines). Even if that trend channel doesn't last long, it would still be a victory if rates can merely treat 2.06% as a ceiling in the coming weeks. Economic data...(read more)

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    Thu, 20 Jun 2019 12:58:01 GMT

Ellie Mae Chief Sees "Very Robust" Summer Sales

  • Posted To: MND NewsWire

    Loans originated in May carried lower mortgage rates t han the previous month for the 5 th consecutive time according to Ellie Mae's Origination Insight Report . The average rate for the 30-year fixed-rate mortgage was 4.52 percent, down from 4.61 percent in April, and 5.01 percent at the first of the year. The share of originations intended for home purchase reached the highest level of the year, 68 percent, up 3 points from the previous month. Nineteen percent of all originations were FHA loans, down 1 point from April. Other shares were unchanged; conventional loans at 66 percent and VA loans at 10 percent. "As the 30-year note rate declines for yet another month, we are seeing purchase and refinance activity on the rise," said Jonathan Corr, President and CEO of Ellie Mae. "Closing rates...(read more)

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    Thu, 20 Jun 2019 12:30:01 GMT

Mortgage Rates Mixed Despite Positive Reaction to Fed

  • Posted To: Mortgage Rate Watch

    Mortgage rates reacted favorably to today's Federal Reserve announcement and press conference--today's key events. But that doesn't mean every lender is in better shape than yesterday. The morning hours saw the bond market (which dictates rates) at weaker levels. Weaker bonds = higher rates, all other thing being equal. It wasn't until the 2pm Fed announcement that bonds began to improve, thus opening the window for mortgage lenders to issue new rates. Unfortunately, some lenders are less prone to mid-day reprices than others. There's also always a healthy fear of volatility in the bond market after the Fed announcement, even if bonds start out moving in a friendly direction. On a final note, the press conference with Fed Chair Powell didn't start until 2:30pm. By the time he was done answering...(read more)

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    Wed, 19 Jun 2019 22:48:16 GMT

MBS RECAP: Fed Threads The Needle as it Preps Markets For Policy Shift

  • Posted To: MBS Commentary

    As expected, today was all about the Fed-related events. Yields moved exactly as far we thought they might based on the Day Ahead , AND in a friendly direction! But if I had to guess where yields would end up based on the contents of the Fed communications, I definitely would NOT have expected the result we got. While the tone of the announcement was much more dovish than the previous example, it was far from "alarmed." And the unchanged median forecast for rates at the end of 2019 could even have been taken as a cue for bonds to sell-off. After all, everyone's talking about 3 rate cuts in 2019, so if the median Fed member sees the same rate cut probability as they did in March, we have issues, right? Looking beneath the rate forecast headline, we see a clear migration toward...(read more)

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    Wed, 19 Jun 2019 22:35:49 GMT

Differences Between Previous and Current FOMC Statements

  • Posted To: MBS Commentary

    Information received since the Federal Open Market Committee met in MarchMay indicates that the labor market remains strong and that economic activity roseis rising at a solidmoderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. GrowthAlthough growth of household spending andappears businessto fixedhave investmentpicked slowedup from earlier in the firstyear, quarterindicators of business fixed investment have been soft. On a 12-month basis, overall inflation and inflation for items other than food and energy have declined and are running below 2 percent. On balance, marketMarket-based measures of inflation compensation have remaineddeclined; low in recent months, and survey-based measures of longer-term inflation expectations are...(read more)

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    Wed, 19 Jun 2019 18:02:54 GMT

Moderating Home Prices Stoke 'Time to Sell' Sentiment

  • Posted To: MND NewsWire

    The second quarter HOME (Housing Opportunities and Market Experience) survey from the National Association of Realtors® (NAR) appears to indicate that a period of softening price increases and lower interest rates have only slightly improved the sentiment of potential homebuyers. Survey respondents who say it is a good time to buy a home remained at 65 percent although those who strongly felt so dipped by one point to 27 percent and those with a moderate opinion rose 1 point to 38 percent. Opinions about selling were more fluid. Seventy-three percent of respondents said it was a good time to sell, up from 65 percent in the Q1 survey and those with a strong opinion increased from 37 to 46 percent. The good time to buy sentiment was shared by two-thirds of respondents in three of the country...(read more)

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    Wed, 19 Jun 2019 15:12:57 GMT

MBS Day Ahead: 6 Years Later, Today's Fed Day Should Be a Bit Different

  • Posted To: MBS Commentary

    In the day just past, bonds surged to the best levels since 2017, with 10yr yields coming within 0.002% of the lowest yields since Nov 2016. The key market mover was a speech from European Central Bank President Mario Draghi in which he essentially promised further monetary easing and rate cuts. Bonds lost about half the gains mid-morning following a Trump tweet about progress with China on a trade deal. In the day ahead, we'll turn our attention to our own central bank. The only major item on the agenda is today's policy announcement from the Fed. So much has changed since the Fed's last meeting (which happened right BEFORE all of the following: China trade war escalation beginning with Trump tweets in early May British PM May's resignation Mexico tariff tweets that pushed...(read more)

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    Wed, 19 Jun 2019 13:35:23 GMT

MLO Resources; Credit Product; Intro to the Prime Jumbo Securitization Market

  • Posted To: Pipeline Press

    Good loan officers pay attention to demographics. For example, according to a new report from the United Nations, the population of the planet could rise from its current 7.7 billion to 10.9 billion by the year 2100. This is a downward adjustment from the last U.N. prediction due to a decrease in the global fertility rate. In the U.S., where are the less-populous metro areas that are gaining the most people? Cities among the 10 largest metros by numeric growth since 2010, but not among the 10 most populous, include Phoenix (third), Seattle (seventh), Austin (ninth), and Orlando (tenth), according to U.S. Census Bureau. Phoenix, has gained an estimated +665k people since 2010, primarily attributed to domestic migration, much like Austin (+452k). Seattle (+500k) and Orlando (+439k) saw more of...(read more)

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    Wed, 19 Jun 2019 12:51:51 GMT

Mortgage Apps Give a Little Back From Last Week's Rally

  • Posted To: MND NewsWire

    Despite appearances, the low-rate spurred rally in mortgage applications reported last week didn't really go "poof" this week. Activity was still strong even as the Mortgage Bankers Association's (MBA's) Market Composite Index gave back some of its previous outsized gains. The Index, a measure of mortgage loan application volume, decreased 3.4 percent on a seasonally adjusted basis during the week ended June 14 after gaining nearly 27 percent the prior week. On an unadjusted basis, the Index lost 4 percent. The Refinance Index decreased 3.5 percent, only a fraction of its previous 47 percent surge . The share of applications that were for refinancing continued to gain ground, rising from 49.8 percent to 50.2 percent. While it didn't match the refi enthusiasm last week the seasonally adjusted...(read more)

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    Wed, 19 Jun 2019 12:13:03 GMT

MBS RECAP: Not The Central Bank We Were Looking For (But We'll Take It!)

  • Posted To: MBS Commentary

    This week's big to-do had been and continues to be tomorrow's Fed announcement, press conference, and updated forecasts. The Fed's European counterpart threw a bit of a curve ball today as Mario Draghi unleashed a barrage of bond-friendly comments overnight with the gist being the essential guarantee of further easing from the ECB. Unsurprisingly, bonds enjoyed Draghi's little surprise . 10yr yields were pulled all the way down to 2.017% at the day's lowest levels. They looked willing to hold in that territory as well. It wasn't until Trump tweeted about promising trade talk developments with China that rates gave up roughly half their gains to end the day perfectly in line with the bottom of the sideways range we've been following (2.06% in terms of 10yr yields...(read more)

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    Tue, 18 Jun 2019 21:34:07 GMT

Mortgage Rates Enjoy Surprise Drop Ahead of Fed Day

  • Posted To: Mortgage Rate Watch

    Mortgage rates have generally been moving sideways for the past 2 weeks. This has accomplished a twofold goal of coming to terms with the strong gains seen in May as well as preparing for tomorrow's hotly-anticipated announcement from the Fed. It has been and continues to be the case that any major surprises (or even minor surprises) from the Fed could have big, immediate effects on rates for better or worse. But just as the sideways momentum was about to lull us to sleep this week, central bank news from across the Atlantic stepped up to change the field of play today. European Central Bank (ECB) President Mario Draghi delivered a speech this morning in which he laid out the likelihood of additional stimulus measures including rate cuts deeper into negative territory. European bond markets...(read more)

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    Tue, 18 Jun 2019 18:38:00 GMT

Construction Numbers Better Than Percentages Indicate

  • Posted To: MND NewsWire

    Residential construction figures had been expected to, at a minimum, hold the fort in May after a mixed report in April. While revisions to the April report somewhat skewed the numbers changes to both permits and starts were only fractional. The Census Bureau and the Department of Housing and Urban Development said permits for privately owned housing units were issued at a seasonally adjusted annual rate of 1,294,000 units, an increase of 0.3 percent from April's revised (from 1,296,000) rate of 1,290,000. The May estimate is 0.5 percent below the permitting rate in May of last year, estimated at a rate of 1,301,000 units. Analysts were about on target with their projections. Those polled by Econoday had forecast permits at a rate of 1,290,000 units within a range of 1,270,000 to 1,309,000...(read more)

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    Tue, 18 Jun 2019 14:24:54 GMT

MBS Day Ahead: Unexpected Headlines Result in Bond Market "Lead-Off"

  • Posted To: MBS Commentary

    In the day just past, bonds did absolutely nothing new or interesting. Yields continued to trade in a narrow, sideways range--one that has persisted for more than 2 weeks. The ostensible catalyst for a breakout was (and still IS, in some ways) tomorrow's Fed announcement (and press conference and economic projections). In the day ahead, we'll ponder what it means that bonds have managed to break out more than a day before the Fed's festivities begin. In fact, today qualifies as confirmed "lead-off" move. These happen frequently enough that we've created a primer on the topic in the MBS Live knowledge base ( here it is ). Long story short, bonds know the big pitch is coming in the form of tomorrow's Fed events, but for whatever reason, they're breaking out of...(read more)

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    Tue, 18 Jun 2019 13:34:16 GMT

Digital, Marketing, Training Products; Upcoming Teaching Events

  • Posted To: Pipeline Press

    With the backdrop of a global bond market rally today, let’s look back at Randy Newman singing, “It's money that matters, hear what I say. It's money that matters, in the USA.” What does $5.6 million buy you these days? A road-gray Yankees jersey that was worn by Babe Ruth sold for $5.64 million at an auction on Saturday at Yankee Stadium, making it the most expensive piece of sports memorabilia ever sold. Out on the Left Coast, and it’s hard to believe it was 50 years ago, you can pick up the Western Whitehouse for $57.5 million: a 5.45-acre oceanfront estate in San Clemente acquired by former president Richard Nixon in 1969 and would go onto become the setting for several political and social gatherings hosting the likes of Frank Sinatra and John Wayne. (Money and...(read more)

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    Tue, 18 Jun 2019 12:56:32 GMT

Gloomier Economic Outlook Brightens Housing Outlook

  • Posted To: MND NewsWire

    Freddie Mac's forecast for June sees more dark clouds than usual , but few of those are on the housing front. The company's Economic and Housing Research Group notes that some of those gathering clouds, concerns about global growth and the lingering trade problems, have pushed long-term interest rates to their lowest level since the fall of 2017, 3.82 percent as of the first week of June. That is good news for the industry and consumers. The downturn is not viewed as a flash-in-the-pan and Freddie's economists have revised downward some of their earlier Treasury rate forecasts. The 10-year note yield is expected to decline to 2.4 percent and 2.5 percent in 2019 and 2020, respectively. They also lowered the 1-year Treasury rate forecast to 2.2 percent this year before increasing to 2.3 percent...(read more)

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    Mon, 17 Jun 2019 22:13:25 GMT

Mortgage Rates Stay Flat, But Risks Will Increase From Here

  • Posted To: Mortgage Rate Watch

    Mortgage rates were only modestly higher today. Most lenders were still quoting the same rates compared to Friday with the only difference being slightly higher upfront costs. This means the rate at the top of the average mortgage quote is still within striking distance of the lowest levels since September 2017. Rather than focus on the journey that has already occurred for rates, it's quickly becoming important to focus on the path ahead . Reason being: rates have generally been flat for more than 2 weeks now. This is incredibly uncommon given the pace of improvements in the several weeks before that. With the Federal Reserve releasing a policy announcement and updated forecasts on Wednesday (both hotly anticipated by financial markets), it seems clear that the sideways momentum in rates is...(read more)

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    Mon, 17 Jun 2019 21:49:00 GMT

May Uptick in Builder Confidence Proves Fleeting

  • Posted To: MND NewsWire

    The National Association of Home Builders' (NAHB's) measure of builder confidence broke out of its multi-month slump in May, rising 3 points. Much of that gain was reversed this month as the NAHB/Wells Fargo Housing Market Index (HMI) dropped by 2 points to 64, returning to the low- to-mid-60s range it has occupied since the first of the year. "While demand for single-family homes remains sound, builders continue to report rising development and construction costs , with some additional concerns over trade issues," said NAHB Chairman Greg Ugalde. "Despite lower mortgage rates, home prices remain somewhat high relative to incomes, which is particularly challenging for entry-level buyers ," said NAHB Chief Economist Robert Dietz. "And while new home sales picked up in March and April, builders...(read more)

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    Mon, 17 Jun 2019 15:09:18 GMT

MBS Day Ahead: Housing Data and The Fed

  • Posted To: MBS Commentary

    In the week just past, the bond market began by threatening to bounce toward higher rates after an impressive, 5-week rally to the lowest levels since 2017. The first sign of support appeared without any provocation other than "relatively higher yields." This is a good thing because it indicated traders were looking for an opportunity to step in and buy bonds without any additional motivation. They were looking to reinforce the range as opposed to ride a wave of momentum back to weaker levels. In the week ahead, the bond market will get a more compelling cue regarding a potential range breakout. If there's one event that stands out, it's Wednesday's Fed announcement . This is also one of the meetings that includes updated economic projections (i.e. Fed member rate forecasts...(read more)

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    Mon, 17 Jun 2019 13:25:06 GMT

Commercial Products; Flood and Disaster Updates; Capital Markets

  • Posted To: Pipeline Press

    I find builder’s naming policies amusing. Let’s call a subdivision “Hidden Valley” or “Lonesome Pines” when it isn’t hidden or lonesome anymore with 500 homes in it. Let’s pave over peach orchards, an area where hawks hunt, or a field of sage brush and then name roads after them. Maybe they can charge more for a house on a street with a cute name. Builders aren’t fools, and they, appraisers, and homeowners also know that houses with garages have more value. Chicago homes with garages sell for an estimated 38% more than comparable homes without them, per a new analysis from Redfin, adding nearly $47k to the sale price of a typical Chicago home. Nationwide, homes with garages sell for $23,211 more than homes without, which equates to a 12...(read more)

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    Mon, 17 Jun 2019 13:19:03 GMT

MBS RECAP: Modest Reactions to Econ Data as Bonds Wait For Bigger News

  • Posted To: MBS Commentary

    Somehow, the bond market managed to end the week at 2.084% (10yr yield) which is exactly where it ended last week. In all my years of market-watching, I've never seen a sharp weekly (like the one we just had in late May) at the end of a sharp multi-month rally give way to 2 straight weeks of fairly flat trading in bonds. To say that this raises the risk of a very big breakout very soon would be an understatement. Today's data was no help in sussing out the direction of such a breakout. Strongly positive revisions to last month's Retail Sales numbers put only modest pressure on bonds early this morning. A huge drop in consumers' 5yr inflation expectations pushed back in the other direction by about as much at 10am. The rest of the day was spent moving perfectly sideways. When...(read more)

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    Fri, 14 Jun 2019 22:27:44 GMT

Mortgage Rates Just Had Another Awesome Week

  • Posted To: Mortgage Rate Watch

    While we can't say that this week's best mortgage rate offerings were quite as good as last week's best, they were pretty darn close. In fact, quite a few lenders have simply been quoting the same rates for the entire 2-week period. That happens from time to time, but it never happens after rates make a strong run to the lowest levels in nearly 2 years. Seriously, I can't find any past examples of a similar turn of events. Therefore, it's safe to declare this to be yet another awesome week for rates, even though it's not an awesome week for the average mortgage originator to have much time to sleep, eat, or chill with the fam! Rather than cry for your friendly neighborhood originator, it makes more sense to add to their workload (if you haven't already). With a very important Fed announcement...(read more)

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    Fri, 14 Jun 2019 22:07:00 GMT

Calabria and Carson: Housing Leaders Talk Reform, Accomplishments

  • Posted To: MND NewsWire

    Attendees at the Ginnie Mae Summit commemorating the agencies 50 th anniversary on Thursday heard from both Dr. Ben Carson, Secretary of the Department of Housing and Urban Development (HUD) and Dr. Mark A. Calabria, newly confirmed director of the Federal Housing Finance Agency (FHFA). Each addressed their plans for updating their respective housing finance components. Calabria spoke first to the increasing role of non-bank mortgage originators. In 2013, he said, non-banks originated 30 percent of the mortgages sold to one of the government guarantee programs. By February of this year, that footprint had doubled to 60 percent. In 2018 those companies originated roughly 50 percent of all mortgages sold to Fannie Mae and Freddie Mac (the GSEs) and they are now Ginnie Mae's main counterparties...(read more)

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    Fri, 14 Jun 2019 16:59:55 GMT