It's been a tremendously uneventful morning so far following a tremendously uneventful overnight session. There have been zero truly significant pieces of news or information to hit markets and the low volume is a testament to that fact. The absence of solid market guidance leaves bond markets in narrow ranges with MBS having put in their lows and highs of the day by 9am and trading inside that range ever since. It's the same for 10yr yields which have seen nearly 1.63 on the high side and 1.606 on the low side, though both MBS and Treasuries are in the stronger parts of their narrow ranges at the moment.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
Pricing as of 11:05 AM EST
Morning Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts
and updates issued via email and text alert to MBS Live subscribers
ECON: New Home Sales Beat (Or Miss) Consensus
* Annual Rate of 369k vs 346k consensus, 343 last time
* +7.6% vs -1.2pct previously, but ± 12.2% margin of error
Sales of new single-family houses in May 2012 were at a seasonally adjusted annual rate of 369,000, according to
estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
This is 7.6 percent (±12.2%)* above the revised April rate of 343,000 and is 19.8 percent (±15.2%) above the May 2011
estimate of 308,000.
The median sales price of new houses sold in May 2012 was $234,500; the average sales price was $273,900. The
seasonally adjusted estimate of new houses for sale at the end of May was 145,000. This represents a supply of 4.7
months at the current sales rate.
Bond Markets Open In Stronger Territory Following "Risk-Off" Cues From Europe
The overnight session was fairly uneventful, but generally positive for bond markets. Strength can be attributed to a collection of moderately important headlines that simply suggested a move away from "risk" just as easily as it could be argued that Friday marked a recent range boundary from a technical perspective.
On the news front, Spain officially requested the bailout that has been in the works for a few weeks after an independent audit to assess potential borrowing needs concluded late last week. Helping to curb some enthusiasm for this week's EU Summit was news that two key Greek officials will no be in attendance due to medical reasons. And a NY Times article made rounds over the weekend and into this morning, stating that Chinese officials are "falsifying economic statistics to disguise the true depth of the troubles."
10yr yields made it just under 1.61 shortly after the domestic open and have since eased slightly higher into the 1.62's. Fannie 3.5 MBS are currently 5 ticks higher on the day at 105-02 and 3.0's are 8 ticks higher at 102-17. S&P futures are down about 14 points from Friday's close.
The only scheduled economic data this morning is coming up at 10am with New Home Sales, expected to rise to a 346 million unit annual rate from 343 million units previously.
Live Chat Featured Comments
Gus Floropoulos : "the new News Stream function is awesome!"
Brent Borcherding : "Interesting follow up: http://www.marketwatch.com/story/housing-inventory-plunges-in-some-places-2012-06-25?pagenumber=2"
Matthew Graham : "RTRS - US MAY SINGLE-FAMILY HOME SALES RATE HIGHEST SINCE APRIL 2010 (422,000 UNIT ANN. RATE) "
Matthew Graham : "RTRS - US HOMES FOR SALE AT END OF MAY 145,000 UNITS VS APRIL 144,000 UNITS "
Matthew Graham : "RTRS - US MAY MEDIAN SALE PRICE $234,500, +5.6 PCT FROM MAY 2011 ($222,000) "
Matthew Graham : "RTRS - US MAY NEW HOME SUPPLY 4.7 MONTHS' WORTH, LOWEST SINCE OCT 2005, AT CURRENT PACE VS APRIL 5.0 MONTHS "
Matthew Graham : "RTRS - US MAY SINGLE-FAMILY HOME SALES +7.6 PCT VS APRIL -1.2 PCT (PREV +3.3 PCT) "
Matthew Graham : "RTRS - US MAY SINGLE-FAMILY HOME SALES 369,000 UNIT ANN. RATE (CONS 346,000) VS APRIL 343,000 "
Victor Burek : "and some are refi'ing again"
Victor Burek : "same here Dean...most of my past ones from 03 and 04 had already refi'd in the past couple years"
Dean Gorenflo : "haven't seen any of those. All of mine have been 2007 to Feb 09 vintage so far"
Gaius Rossini : "hey, FHA streamlines - any increase in borrowers from '03 '04 from the MIP change?"
Jason Roaldson : "You are allowed to close those FHA flip transactions as long as you provide 2 appraisals and a home inspection to substantiate the increase in value. I do them quite often."
Jason Zimmer : "correct...app date/cpmtract 90 days from acquisition"
Matt Hodges : "FHA flip question: i have a client buying a flip that had greater than 20% appreciation. Told the client and Realtor they needed to wait 90 days to avoid flip rules - 2nd appraisal and proof value was added. I'm being told that since the seller acquired and then wrote a sales contract within 2 weeks, it's a flip, regardless of close date being 90+ days since the seller's acquisition. Thoughts?"
Clayton Sandy : "Morning, all. Ted, Chase will still do non-serviced streams if you credit qualify them. "
Bryan LaFlamme : "I like the new 'News Stream' box. Nice addition"
Ted Rood : "Night, gents. Anyone have willing FHA stream investors other than Franklin American??"