Freddie Mac is touting its readiness to transition from using the London Interbank Offered Rate or LIBOR to the Secured Overnight Financing Rate (SOFR) as a mortgage reference index. The end date for LIBOR may be extended (yet again) from the end of 2021 to mid-2023, but Freddie Mac says it remains committed to prepare for a final transition as soon as possible. SOFR, which was specifically developed to replace LIBOR, is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. Because, unlike LIBOR, it is collateralized, its rate tends to be lower. Over the last month it has ranged between 0.05 and 0.09 percent. The New York Fed publishes the SOFR on its website each business day. The company said it has made significant progress in support of the move

December 18, 2020 Download our Mobile App: Download our Mobile App: 30 Yr. Fixed 6.37% +0.15%   6.13% 7.26% 15 Yr. Fixed 5.88% +0.13%   5.54% 6.59% 30 Yr. Jumbo 6.25% +0.11%   6.14% 7.45% Compare Mortgage Rates from Local Lenders for Dec 18, 2020 How Much Lower Are Today's "All-Time Low" Mortgage Rates? Thu, Dec 17, 2020 5:50PM 2020 has safely secured its place in the record books as the year of all-time lows in mortgage rates --one of them anyway. Several other years have recently boasted as many new instances of record lows, but none have done so with the average 30yr fixed rate under 3% . When it comes to the "top tier" rates that are typically used as benchmarks, sub-3% is actually very old news now. As of this week, even the broad averages (which include loans that are far from "top tier") have fallen under 3%. Top tier rates are closer to 2% in some cases. But how much progress is being made each time the old r... (read more) Mortgage News Daily Rate Change Points 30 Yr. Fixed 6.37% +0.15 0.00 15 Yr. Fixed 5.88% +0.13 0.00 30 Yr. FHA 6.05% +0.10 0.00 30 Yr. Jumbo 6.25% +0.11 0.00 7/6 SOFR ARM 5.77% +0.12 0.00 30 Yr. VA 6.07% +0.09 0.00 Updates Daily - Last Update: 9/18 Freddie Mac Rate Change Points 30 Yr. Fixed 6.26% -0.09 0.00 15 Yr. Fixed 5.41% -0.09 0.00 Updates Weekly - Last Update: 9/18 Mortgage Bankers Assoc. 30 Yr. Fixed 6.49% -0.15 0.56 15 Yr. Fixed 5.70% -0.14 0.55 30 Yr. Jumbo 6.44% -0.14 0.48 Updates Weekly - Last Update: 9/10 UMBS 30YR 5.0 99.54 -0.04   95.05 100.47 UMBS 30YR 5.5 101.07 +0.04   97.47 101.61 10 YR Treasury 4.104 +0.023   3.706 4.780 MBS Live Day Ahead: Bond Market's Full Attention on Stimulus Prospects and Timing Fri, Dec 18, 2020 9:51AM Next week, the bond market will only be open for 3.5 days.  In that time, the bond market will see a majority of its 'year-end' trades (asset allocation changes from money managers who are required to match their portfolios to the indices in their managed funds).  Some of that trading will occur in the 3.5 trading days of the following trading week... (read more) MBS Price Change UMBS 4.5 97.46 -0.16 UMBS 5.0 99.54 -0.04 UMBS 5.5 101.07 +0.04 GNMA 4.5 97.50 -0.52 GNMA 5.0 99.75 -0.07 GNMA 5.5 100.90 +0.01 Pricing as of: 9/18 6:47PM EST US Treasury Yield Change 2 YR Treasury 3.565 +0.001 5 YR Treasury 3.667 +0.011 7 YR Treasury 3.850 +0.011 10 YR Treasury 4.104 +0.023 30 YR Treasury 4.724 +0.036 Pricing as of: 9/18 6:47PM EST Other News Freddie is Making the Switch to The Secured Overnight Financing Rate (SOFR) Fri, Dec 18, 2020 10:44AM Freddie Mac is touting its readiness to transition from using the London Interbank Offered Rate or LIBOR to the Secured Overnight Financing Rate (SOFR) as a mortgage reference index. The end date for LIBOR may be extended (yet again) from the end of 2021 to mid-2023, but Freddie Mac says it remains committed to prepare for a final transition as soon as possi... (read more) Forbearances Rise, True to Mid-Month Pattern Fri, Dec 18, 2020 10:47AM There was an increase in the number of loans in forbearance over the last week as the share within all lender portfolios, even the GSEs', moved higher. Black Knight said, however, that an uptick in mid-month has become common, generally driven by fewer borrowers exiting their plans. This was true this past week as well. The strongest declines tend to occur a... (read more) FHFA Looking to Lock-In Fannie/Freddie Liquidity Rules Thu, Dec 17, 2020 1:53PM In November, the Federal Housing Finance Agency (FHFA) released a new regulatory capital framework for Fannie Mae and Freddie Mac (the GSEs). At the time FHFA said the final rule fulfills Congress's mandate in the Housing and Economic Recovery Act of 2008 that FHFA establish risk-based capital requirements for the GSEs to ensure their safety and soundness by... (read more) Ops, Branch Manager, LO Jobs; CFO Role Wanted; First American Rebrand; Rural, FHA, VA Program Changes Fri, Dec 18, 2020 10:39AM I don’t know what’s longer, a “regular” minute, “microwave” minute, or a “treadmill” minute. Speaking of time, if someone sends you an email saying, “The noon meeting has been moved forward two hours,” how do you read that, 10AM to 2PM? The answer shows which of these two ways you perceive time. Tim... (read more) Latest Video Last minute issues endanger aid agreement, Toomey proposal limits Fed abili... The 9 a.m. Bond Report: December 18, 2020 Snyder: Vaccines could be the biggest stimulus for markets in 2021 S&P 500, Nasdaq hit record intraday highs Around the Web Calculated Risk Blog Update: 2021 Housing Forecasts Calculated Risk Blog Q4 GDP Forecasts NAHB Eye on Housing Second Home Markets Show Construction Growth Calculated Risk Blog Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans Increased Slightly CNBC Emergency savings are key to combating financial fragility but Americans need more help CNBC U.S. Treasury yields move higher on glimmers of progress over fiscal stimulus CNBC Just a few hours' left to agree a Brexit trade deal, top EU negotiator says thehill.com Fight over Federal Reserve powers holding up year-end deal Calculated Risk Blog Comments on November Housing Starts NPR U.S. Scrambles To Understand Major Computer Hack, But Says Little Calculated Risk Blog CAR on California November Housing: Sales up 26% YoY, Active Listings down 47% YoY CNBC Home flipping profits are the highest in 20 years, but fewer are doing it Calculated Risk Blog Hotels: Occupancy Rate Declined 37.4% Year-over-year

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