Fri, Jun 25 2010, 10:01 AM
Don't be surprised if secondary marketing is a little under the weather today. You will likely experience modest delays as lock desks are now sorting ...
Fri, Jun 25 2010, 8:12 AM
Equity futures are pointing higher this morning after the House and Senate agreed to a final version of what’s being called the the biggest regulatory...
Fri, Jun 25 2010, 4:39 PM
If we're really headed for a double dip, interest rates will surely move lower. I'm just not sure how much further mortgage rates can fall though...
Fri, Jun 25 2010, 4:34 PM
The first release of lender rate sheets was interesting. MBS prices opened basically unchanged vs. closing levels yesterday, but loan pricing was much...
Thu, Jun 24 2010, 12:09 PM
With MBS prices hitting new highs on a daily basis, lock desks and traders have able to get away with being under hedged. While this strategy works ou...
Thu, Jun 24 2010, 8:43 AM
4.0 MBS coupons traded yesterday. This means 4.25% mortgage rates were available on rate sheets. I heard of a market being made in 3.50s but that is p...
Thu, Jun 24 2010, 8:12 AM
Following a dizzying 33% drop in new home sales yesterday, plus a more dovish statement from the Federal Reserve, investors have become worried about ...
Thu, Jun 24 2010, 4:39 PM
Mortgage rates rallied to new all-time lows yesterday following a few disappointing housing headlines. While it has been no secret to housing industry...
Thu, Jun 24 2010, 1:26 PM
The 7-year note auction went well...but benchmark yields are still on the rise. I would characterize the behavior of the 10yr note as "indecisive cons...
Wed, Jun 23 2010, 9:59 AM
Sales of new single-family houses in May 2010 were at a seasonally adjusted annual rate of 300,000, according to estimates released jointly today by t...
Wed, Jun 23 2010, 8:44 AM
Lenders are delaying the release of loan pricing until the market makes a directional move around 10am. If New Home Sales disappoint, stocks will turn...
Wed, Jun 23 2010, 8:29 PM
MBS prices are at all-time highs (AGAIN) and I think we can officially say mortgage rates are priced at their best levels ever. If not, we're pretty d...
Wed, Jun 23 2010, 2:30 PM
The FOMC Statement has been released. The subtle alterations made to the statement were skewed to the bearish side of the BIG PICTURE storyline. This...
Wed, Jun 23 2010, 1:00 PM
This was a brutal auction! Blame the flight to safety yesterday...this issue was too expensive! The August Fannie Mae 4.5 MBS coupon lost 4 ticks in p...
Tue, Jun 22 2010, 10:32 AM
10:00 22Jun10 RTRS-US MAY EXISTING HOME SALES 5.66 MLN UNIT ANNUAL RATE (CONS 6.12 MLN) VS APRIL 5.79 MLN (PRV 5.77)-NAR
10:00 22Jun10 RTRS-US MAY EX...
Tue, Jun 22 2010, 8:08 AM
The "Keep It Simple Stupid" theory seems to be the most fitting method of market watching these days. Investment horizons are short and while particip...
Tue, Jun 22 2010, 5:57 PM
Mortgages traded to new record price highs today. The low production volume origination environment continues to support favorable "rate sheet influen...
Tue, Jun 22 2010, 1:32 PM
If you are hoping for reprices you should be watching the August FN 4.5 MBS coupon (and the 4.0), which is currently +0-08 at 102-27. It is possible t...
Mon, Jun 21 2010, 12:37 PM
The mixed messages offered by the market in previous weeks have evolved into no messages. In June, we've witnessed irrational interest rate reactions ...
Mon, Jun 21 2010, 5:21 PM
Thinking forward, because loan officers are closing their loans (pull-through!) and commitment buckets aren't losing much water (salable loan paper), ...
Mon, Jun 21 2010, 4:18 PM
Although the economic calendar isn't jammed packed in the week ahead, the data and events on the ballot carry more potential to move interest rates. W...
Fri, Jun 18 2010, 7:34 AM
Plain and Simple: the recent stock market rally has yet to grow legs of its own as forced buying has led the indexes higher. This leaves equities susc...
Thu, Jun 17 2010, 10:34 AM
The majors published pricing pretty early this morning...when production coupons were at lower levels. Since then stocks have pulled a complete 180. S...
Thu, Jun 17 2010, 7:07 AM
S&Ps opened lower and traded higher before closing near the same level they opened yesterday. This tells us the stock market is indecisive after S&Ps...
Thu, Jun 17 2010, 4:31 PM
It was another volatile day in the markets. Stocks traded in a wide range before eventually closing in positive territory. Interest rates seem to now ...
Wed, Jun 16 2010, 8:31 AM
Good Morning. 830am data has been released. Housing Starts were much worse than expected as were Building Permits. The yield curve is flatter and the ...
Wed, Jun 16 2010, 7:58 PM
Here is the good news: ONLY A FEW LENDERS REPRICED FOR THE WORSE! Here is the bad news: THIS PUTS LENDERS ON THE DEFENSIVE. Unless stocks are red hot...
Tue, Jun 15 2010, 12:27 PM
The Euro, Oil, and the S&P are adding to early session appreciations and interest rates are starting to suffer because of it. The later your lender pu...
Tue, Jun 15 2010, 8:54 AM
Investors seem to be comfortable with the EU crisis discount they have priced into asset valuations...either that or options expiration week is drivin...
Tue, Jun 15 2010, 6:28 PM
Doesn't it feel like the stock market is operating in its own little world again? Doesn't it seem like the bond market is trying to tell us it has no ...
Tue, Jun 15 2010, 5:41 PM
Floating your loan is getting more risky as stocks have broken an important level of resistance and investor optimism is improving. If stocks do exten...
Mon, Jun 14 2010, 9:03 AM
With trader sentiments still reflective of a non-committal bias, headline news remains a primary motivational factor of tactical stances (short term s...
Mon, Jun 14 2010, 4:50 PM
Although the short term behavior of both stock and bond markets has been indicative of a looming long-term trend reversal, neither market was able to ...
Mon, Jun 14 2010, 3:21 PM
While mortgage rates either held steady or improved in four of the last five sessions, they still ended last week higher than where they began it. The...
Fri, Jun 11 2010, 12:35 PM
Normally we'd expect lenders to pass along better loan pricing when production MBS coupon prices rally up 8 ticks (+0-08 or 8/32). Not 8/32 from the o...
Fri, Jun 11 2010, 8:43 AM
Stocks are lower and bonds are better after the U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for M...
Fri, Jun 11 2010, 5:57 PM
The market is still acting non-committal, the biggest difference is open interest is way lower in both stock futures and 10yr TSY futures. One of thes...
Fri, Jun 11 2010, 5:53 PM
While it will cost a borrower almost 50 basis more at the closing table (0.50% of the loan amount), 4.50% is still available for most WELL-QUALIFIED b...
Thu, Jun 10 2010, 9:36 AM
MBS prices are backing away from all time highs as stocks rally. The FN 4.0 is -0-11 at 99-31. The FN 4.5 is -0-07 at 102-26. The GN 4.0 is -0-11 at ...
Thu, Jun 10 2010, 5:18 PM
Stocks rallied all day long before closing at the highs of the session. This resulted in another investor exodus from risk averse assets which sent be...
Thu, Jun 10 2010, 3:49 PM
Have you ever wondered why longer term locks are more expensive than short term locks?
Thu, Jun 10 2010, 1:00 PM
Indirect buyers are responsible for me being able to say this auction went well. They were the aggressive bidders. After the auction Benchmark TSYs yi...
Wed, Jun 9 2010, 8:58 AM
We had what I hope was an enlightening conversation yesterday afternoon about the status of loan pipelines and the recent improvement in loan pricing....
Wed, Jun 9 2010, 5:14 PM
FN4.5: +0-06 at 103-02. GN4.5: +0-06 at 103-22. Secondary Market Current Coupon: -1.4bps to 3.98%. CC Yield Spreads:+80.2/10yTSY. +70.5/10yIRS. Went O...
Wed, Jun 9 2010, 4:58 PM
Mortgage rates moved slightly higher this morning as stocks rallied and MBS prices ticked lower. About the time the 10-year note auction results were ...
Wed, Jun 9 2010, 1:18 PM
Auction demand was strong but only at higher yields and lower prices. Primary dealers took down more inventory than usual to offset a decline in direc...
Tue, Jun 8 2010, 8:50 AM
Markets are range bound at the moment but teetering on a broader technical breakdown. It's still all about the stock lever and the Euro. If the Euro f...
Tue, Jun 8 2010, 5:08 PM
The par 30 year conventional rate mortgage remains in the 4.50% to 4.75% range for well qualified consumers. Although it it's very tempting to float y...
Tue, Jun 8 2010, 2:09 PM
Depending on fallout, your secondary marketing department is probably underwater on their loan pricing after the recent run-up in MBS prices. You tell...
Mon, Jun 7 2010, 8:40 AM
When do U.S. stocks and bonds disconnect from the directional movements of the Euro? When does the opportunity cost of risk averse investing outweigh ...
