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Fed Delivers. Bonds Surge
As far as the Fed is concerned, bonds don't have to stress out about rates rising too terribly quickly right now. Granted, they can only directly control the shortest-term rates, but they just pledged to keep buying as much of the longer-term stuff as they have been. MBS and Treasuries appreciate it, to say the least.
Econ Data / Events
11:30-11:50 AM (ET) - Fed 30yr UMBS Buying
Market Movement Recap
07:56 AM Treasuries flat during Asian hours, then rallied during European hours. 10yr yields bounced at .79% just after 6am and are up to .804% to start the domestic session. MBS are opening slightly weaker, but have yet to find liquidity. Note: prices will be visually lower on the chart due to the roll.
12:23 PM Bond yields followed stock prices lower at the NYSE open, and MBS came along for the ride with modest gains. Treasuries are still down 4.8bps at .78, but MBS have slipped into an illiquid "mystery price" mode again with buyers and sellers on different planets. 2.0 MBS are indicated +2 ticks (0.06) on the day, but are likely just a bit stronger by the time liquidity improves.
02:13 PM Yields spiked briefly and inexplicably after the Fed, but have no returned to pre-Fed levels. MBS are at the best levels of the day. Fed committed to continuing purchases at a pace that at least matches the current pace.
02:39 PM Bonds have thought things over and decided the Fed's message is an unequivocal buy signal. 10yr yields are down more than 7bps at .754. UMBS 2.0 coupons are skyrocketing, relatively, up more than 5/8ths of a point on the day.
MBS Commentary
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Fed Delivers. Bonds Surge
As far as the Fed is concerned, bonds don't have to stress out about rates rising too terribly quickly right now. Granted, they can only directly control the shortest-term rate... (read more)
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Housing News
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Lenders, responding to increasing unemployment rates and other risks, tightened lending standards in May, sending the Mortgage Bankers Association's (MBA's) Mortgage Credit Availability Index (MCAI) into a tailspin. The index dropped 3.1 percent to 1... (read more)
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Housing News
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The Mortgage Bankers Association (MBA) says that mortgage application volume rose significantly during the week ended June 5 as many states began to lift restrictions on individuals and businesses imposed in response to the COVID-19 pandemic. MBA's M... (read more)
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Mortgage Rate Watch
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Mortgage rates moved lower again today, with the average lender erasing a good amount of the weakness seen last week. That's good news considering rates hit all-time lows on the afternoon of June 1st (last Monday). After that, however, rates rose at ... (read more)
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Rob Chrisman
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Not only are origination staff asking for refreshed marketing efforts as volumes show a tinge of falling off, but how about this note that I received from a CEO of a large lender in the Northeast? “Rob, what are you hearing about signing bonuse... (read more)
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Housing News
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After falling an aggregate of 29.5 points in March and April, Fannie Mae says its Home Purchase Sentiment Index (HPSI) has begun to recover. The Index rose 4.5 points in May to 67.5 from an all-time survey low in April. Four of the six index componen... (read more)
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