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Home mortgage rates and real estate news - CNNMoney.com

Should I get a fixed- or adjustable-rate mortgage?

Read full story for latest details.

What will your monthly mortgage payment be?

In the market for a new home? Or planning to refinance? Find out what your monthly payment will be.

Looking for a home in Berlin or Budapest? Prepare to pay more

Europe took 11 of the top 20 spots on a ranking of cities with the largest price increases in the first quarter, according to global property agency Knight Frank.

Zillow buys a mortgage lender and the stock tanks

Read full story for latest details.

Is Manhattan's rental market finally cooling off?

Rent prices in Manhattan are slowing down and landlords are offering concessions as inventory on the island grows.

Was my home a good investment?

Calculate the return on your home and how it compares to returns on stocks, bonds and overall home prices.

Housing market remains strong, despite mortgage rate worries

Homebuilder Lennar reported sales and profits that topped forecasts and indicated there is still healthy demand for new homes despite rising mortgage rates.

Why West Coast home prices are surging

The hottest markets are in the West, and it's creating an affordability issue.

What to spend money on (and what to DIY) as a new homeowner

Angie Hicks, co-founder of Angie's List, talks about how to keep your costs in check as a new homeowner.

He made $400,000 flipping a house

Read full story for latest details.

How to save $9,000 on your mortgage

Read full story for latest details.

It's tough to be a homebuyer in Seattle

Read full story for latest details.

Are you ready to buy a home?

Read full story for latest details.

Home Depot's sluggish sales may be warning sign for housing

Home Deport reported sales growth that missed Wall Street's forecasts. The company specifically cited a 'slow start' to spring as a problem. Bad weather did hurt sales. But rising mortgage rates might be a bigger problem going forward.

Even rising mortgage rates won't stop homebuyers

Read full story for latest details.

Home prices are on an epic run

Real estate prices posted an annual gain of 6.3% in February, and have been rising continuously for the past 70 months.

How these hurricane-ravaged states have avoided a housing disaster -- so far

An expected deluge of hurricane-related foreclosures has so far been avoided, thanks in part to new provisions by federal agencies and regulations imposed after the financial crisis.

5 ways to afford your first home

Read full story for latest details.

London's property market is in a coma

London experienced years of booming property prices. But the market has now ground to a halt.

WSJ.com: Real Estate

Gardens and Mountains in Australia

This luxury period-style home on more than 50,000 square feet of land has a national park out the back door and is just a 90-minute drive from Sydney.

DJ Khaled Lists Miami-Area Villa With Sneaker Room for $7.99 Million

The social-media star and music producer is selling the Aventura, Fla., home several months after purchasing a property in Miami Beach.

The Artsy Southern Town That Wants to Be the Next Portland

Former milltown of Greenville, S.C., has been rejuvenated by a thriving cultural scene; average home prices have risen over 20% in the past three years.

The Challenges of Selling a Hollywood Home

In Los Angeles, an abode that has housed generations of Hollywood legends can be the ultimate status symbol, but there are complications when it is time to sell.

Hollywood Producer Joel Silver Sells Malibu Home for $38 million

Joel Silver, producer of the “Die Hard” and “Matrix” film franchises, sold his Malibu, Calif., home on Carbon Beach for $38 million.

Ziff Family Florida Compound Is Seeking Almost $200 Million

Known as “Gemini,” the nearly 16-acre estate south of Palm Beach is one of the highest priced listings in the country

An Apple Manager's Headquarters for High Jinks

A creative director crafts a San Francisco home dedicated to daring, whimsy and fun.

Japan's Creative, Ephemeral Homes

Buyers value new, highly personalized houses—forget resales. This model has one happy side-effect: a flourishing of some of the world’s most wonderfully bizarre architecture.

Soho Penthouse Seeks $29.995 Million

The seller is Jon Venetos, the former head of Surveyor Capital, which is part of hedge-fund giant Citadel.

Developers Put on the Glitz for Busy Fall Selling Season

Increasingly, developers use a wide range of splashy affairs to promote luxury residential real-estate sales in autumn, the most important sales period after spring.

Microsoft Opens Flagship Store on Fifth Avenue

Microsoft will step onto one of the world’s biggest retail stages Monday when it opens its Fifth Avenue store in Manhattan as part of its strategy to boost direct contact with consumers.

A Resnick Scion Strikes Out on His Own

With a new Chelsea condominium that’s 80% sold, Scott Resnick shows he’s up to the challenge of developing residential projects on his own.

Shopping Mall Developer Taubman Dies

A. Alfred Taubman, the self-made billionaire who cemented the enclosed shopping mall into American culture has died. He was 91.

Fannie, Freddie to Lower Fees

The Federal Housing Finance Agency is set to direct Fannie Mae and Freddie Mac to reduce mortgage fees on some borrowers.

An App That Helps Glimpse the Future

Rokitt’s augmented-reality technology helps architects and residents see a skyline’s potential.

What's the Deal

A roundup of real-estate news in the tri-state region

New York's Institutional Building Spree

Projects by schools, hospitals and others more than tripled in the first half of this year compared with a year earlier.

Stonewall Inn, Historic Gay Site, May Become New York City Landmark

The city Landmarks Preservation Commission is scheduled to hold a hearing Tuesday on designating the Stonewall Inn as an individual landmark for its pivotal role in New York City’s social history.

Red Berries Are Coming Back to New Jersey

In a sign of the changing beverage market, a longtime plant and distribution facility of juice maker Ocean Spray Cranberries Inc. will soon be home to the company Bai Brands, which produces drinks made from the coffee fruit.

Rent Regulations Expire as Deal Eludes Lawmakers

New York City’s rent regulations expired at midnight Monday as Albany lawmakers couldn’t agree on how to renew a law that afforded protection to more than two million people.

A House Made for a Sailor

The Kroeses are selling their waterside home in Westbrook, Conn., designed to complement lives spent largely on sailboats. The nautically themed home is on the market for $1.975 million.

Group Wants Parking Lots Converted to Elderly Housing

A study by the advocacy group LiveOn NY has identified 39 parking lots in the five boroughs that it says are underused and would be better used as housing for seniors.

What's the Deal: News Digest

A round-up of commercial real-estate news in the Greater New York region.

Rent a Desk, or Bathroom, in New York City With an App

A slew of innovative app-based services help New Yorkers instantly book short stints at the smallest of city spaces—a bathroom, a living room, an office. Need a pit stop? Try Airpnp.

In Franklin Lakes, People Tend to Stay Awhile

The affluent New Jersey community, population 10,600, is about 25 miles from Manhattan. Residents are drawn by its well-regarded public schools, relatively low property taxes and bucolic atmosphere.

Avison Young Hires Big to Accelerate Growth in New York

A. Mitti Liebersohn has left his longtime brokerage team at JLL to join Avison Young’s New York office.

What's the Deal: News Digest

A roundup of real-estate news in the Greater New York area.

Designers Put Cork in It

Once dismissed as cheap and ugly, cork is becoming cool as top designers create pieces that are not only sustainable, but covetable.

Five Midcentury Homes for Interiors Inspiration

Take a tour of these classic residences, including Modernist designer Eileen Gray’s 1929 villa, now open to the public after years of restoration.

Design's Best-Kept Secret: Eames Radios

Collectors are tuning into radios designed by Charles and Ray Eames—a more accessible way to own an original by the midcentury masters.

Basic Home Essentials That Are Anything But Ordinary

Even if you aren’t ready for Marie Kondo’s life-changing magic, you can still embrace the beauty of simplicity by investing in items that are functional and stylish.

Five Fresh Spring Vases

Choose the perfect vase to display those long-awaited spring flowers at their best.

Ways to Give Your House Away

Anyone inspired to donate their home to charity should know that the tax rules are complicated.

Chita Rivera on the Leap That Launched Her Dance Career

The actress/dancer was a tomboy who grew up in a lively Washington, D.C., home.

Comedian Mike Myers Lists New York Duplex for $16.95 Million

The “Austin Powers” creator purchased the 4,200-square-foot penthouse in Soho for roughly $7.9 million in 2007

Philadelphia Penthouse Is Listing for a Record $17.6 Million

Under construction, the apartment has the highest asking price in the city.

Where Luxury Homes Sell the Fastest

An analysis of home listings over a two-month period identifies San Jose, Calif., as the place where home buyers need to act quickly.

Extreme Closet Makeover

A look inside the $85,000 closet renovation of a California doctor.

Westchester's Priciest House Is Listing For $29.5 Million

The 98-acre property in Mount Kisco, N.Y. was once owned by showman Billy Rose

Advantages of a One-of-a-Kind Home

Homes with a special feature that is no longer allowed under local building rules may give owners an edge when it’s time to sell.

The French Riviera at a Bargain

There are rare deals in glittering Cap d’Antibes, the onetime party spot of F. Scott and Zelda Fitzgerald.

Barcelona's Draw as 'Urban Resort'

Spain’s second city is luring new home buyers who like the city-and-surf lifestyle of the coastal metropolis.

After Foreclosures, Home Buyers Are Back

Many who lost their homes during the early part of the financial crisis are rebounding after credit-penalty phase.

CBRE Global Investors Buys Stake in Three GGP Malls

One of the world’s largest real-estate asset managers has purchased a 49% stake in three malls in a deal that values them at more than $1 billion and shows that investors still have an appetite for top-tier retail property.

FAO Schwarz Is Returning to New York

A dominant presence in Midtown Manhattan for decades before its closure in 2015, the toy store is coming to life again with a new, 20,000-square-foot Rockefeller Center location.

Sportswear-Maker Puma to Open New York Flagship

Germany’s Puma has signed a lease deal to creating a marquee location on Fifth Avenue that will be the first of its kind for the company in North America.

Kushner Cos., Brookfield Near a Deal for Stake in 666 Fifth Ave.

The real estate arm of Brookfield Asset Management is in advanced talks with Kushner Cos. to buy roughly a 50% stake in 666 Fifth Ave. and invest hundreds of millions of dollars in the Manhattan office tower, which has been at the center of a controversy over possible conflicts of interest involving Jared Kushner, President Donald Trump’s son-in-law and adviser.

Mortgage News Daily

MBS RECAP: Bond Prices Defy Gravity With Help From Oil/Stocks

Posted To: MBS Commentary

We're typically talking about "the bond market in terms of 10yr Treasury yields," but in terms of PRICES , there was certainly some gravity in play coming into today. This gravity lined up with the resistance level at 2.82% in yields. In other words, the more yields fell toward 2.82%, the more resistance they'd likely experience. The first 2 hours of the trading day made it look like the bounce at 2.82% was already in. After coming close to breaking through the floor in overnight hours, bonds began the domestic session with a quick run up to 2.855%. But the late morning hours sent yields right back to the floor with a combination of heavy losses in stocks and even heavier losses in oil. In short, bond prices defied gravity . This leaves us in the strongest part of the recent...(read more)

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Mortgage Rates Lowest Since August Ahead of Fed

Posted To: Mortgage Rate Watch

Mortgage rates fell today as lenders got caught up with the friendly move in the bond market that we noted yesterday. Incidentally, today's bond market movement was also friendly (i.e. it suggested rates should continue to move lower). There's almost never only one reason that financial markets are doing whatever they're doing, even if there is frequently one reason that's bigger than the others. Both stocks and oil prices were high on the list of reasons for today's interest rate movement. When it comes to stocks, big losses frequently help rates (investors often seek safe-havens when stocks are panicking, and bond markets can be one of those havens. More bond buying = lower rates). When it comes to oil prices, the relationship with rates is far less predictable , but when oil is falling rapidly...(read more)

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One Region Accounts For Majority of Economic Optimism -NAR Survey

Posted To: MND NewsWire

Only about one third of Americans told the National Association of Realtors® (NAR) in a recent survey that they thought it was a good time to buy a home. Respondents to NAR's fourth quarter Housing Opportunities and Market Experience (HOME) survey were generally upbeat about the economy, with 59 percent of those polls believing it is improving. However only 34 percent strongly believe that it is a good time to buy. NAR says that despite the overall optimism and the recent direction of home prices the sentiment on home buying continued to diminish at the close of 2018. Thirty-nine percent had expressed a positive attitude toward homebuying in the third quarter survey and 43 percent did so one year ago. The percentage of those who believe that is not a good time to buy was unchanged in the...(read more)

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A Positive Housing Report? November Residential Construction Changes Course

Posted To: MND NewsWire

Residential construction performed an abrupt and unexpected about face in October. Permits, housing starts, and completions all improved on a month-over-month basis and, except for completions, they were not token increases. The gains however did all come from the multifamily sector, single-family activity remained weak. Permits for privately owned housing units were issued during the month at a seasonally adjusted annual rate of 1,328,000, a 5.0 percent jump from October. This put the rate above water relative to a year earlier , up 0.4 percent. The original 1,263,000 permits reported for October were revised up to 1,265,000. Analysts polled by Econoday had not expected much from either permits or starts. Their consensus estimate for the former was 1,257,000 units with a range of 1,250,000...(read more)

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MBS Day Ahead: Bonds Running Into Same Rate Floor Ahead of Fed

Posted To: MBS Commentary

Fed day tomorrow! We'll finally get to see what's what with respect to recent speculation and a factual shift in tone from several Fed members (including Powell). But we have a day and a half of trading to get through before that happens. As today's trading ramps up, we're seeing starkly clear confirmation of the consolidation range that I can't stop talking about over the last week and a half. The boundaries are now clearly set at 2.92% overhead (successfully defended as a ceiling on Wed/Thu last week) and 2.82% (which has offered several floor bounces starting on December 6th). 2.82% is highlighted on the chart because that's the boundary we're closer to this morning. In fact, yields bounced there in the overnight session, and from a purely technical standpoint...(read more)

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Banks Buying Lenders and Other Banks, Report on Merger Activity; Capital Markets Update

Posted To: Pipeline Press

“Rob, I’m no stranger to bribes.” (I am not going to say which mortgage banking production manager jokingly made that tongue-in-cheek statement.) We trust that Fed officials are not subject to bribes or political influences. A poll of 60 economists shows an almost unanimous expectation that the Federal Reserve will announce an interest-rate increase tomorrow. But a significant number of respondents expect only two further increases in 2019, instead of the three that were widely predicted in a similar survey in November. Lender Products and Services Are you looking for a USDA One-Time Close product that can be sold to your correspondent investor right after closing and before construction has begun? Check out the new USDA One-Time Close purchase option TMS Correspondent recently...(read more)

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MBS RECAP: Stock Sell-Off Makes Strong Case For Bond Consolidation

Posted To: MBS Commentary

Just when you thought we might be done talking about "consolidations," there's that word again! I'd suggested on Friday that the modest bond market gains helped to confirm a consolidation as opposed to a correction, with the recent yield highs of 2.92% acting as the dividing line. With Friday closing just under 2.90%, we weren't exactly out of the woods with respect to the days leading up to Wednesday's Fed festivities. That changed today , for the most part, as yields rallied all the way down under 2.86%. At this point, it would take a fairly serious bout of weakness tomorrow for the "consolidation" definition to be questioned. But why does the definition matter? A a matter of fact, the words "consolidation vs correction" don't really matter...(read more)

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Mortgage Rates Little-Changed Despite Market Gains

Posted To: Mortgage Rate Watch

Mortgage rates were fairly flat yet again today. Unlike Friday, today's market movement made a case for a bit of a drop. "Market gains" mean different things when talking about bonds/rates (as opposed to stocks). In today's case, bond markets improved while stocks lost ground. In fact, the pace at which stocks lost ground largely explains bond market gains (investors often seek safe-havens when stocks are panicking, and bond markets can be one of those havens). As money flows into bond markets, bond prices rise and rates fall. Mortgage rates are ultimately determined by mortgage lenders, but they'll usually change rate sheets in the middle of the day if bonds are improving quickly enough. Today's bond market gains were big enough to justify so-called "reprices" among mortgage lenders, but that...(read more)

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Builder Confidence: Lower Rates Helping With Affordability Concerns

Posted To: MND NewsWire

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) is flirting with the danger zone. Although stressing that the index remains in positive territory, NAHB said its measure of home builder confidence lost 4 points compared to November, landing at 56. It was the lowest reading since May 2015 and followed an 8-point drop last month. NAHB said the index is reflecting concerns over housing affordability. "We are hearing from builders that consumer demand exists, but that customers are hesitating to make a purchase because of rising home costs," said NAHB Chairman Randy Noel. "However, recent declines in mortgage interest rates should help move the market forward in early 2019." Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB...(read more)

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MBS Week Ahead: Fed Week Is Here. Let's Looks at Possibilities

Posted To: MBS Commentary

More than anything else over the past 3 weeks, a shift in tone among Fed speakers has been at the heart of the year's best bond market rally. Seemingly overnight, the average Fed member went from saying things like "3 more hikes in 2019" to "very close to neutral." Markets would do well to remember that a few Fed speeches from the past have indicated the Fed's willingness to take rates temporarily above neutral, if needed, but that was really only a risk in the event economic growth continued to accelerate. While economic growth is still relatively strong, there doesn't seem to be much concern about it accelerating at the moment. That means that the neutral Fed Funds Rate is probably the point at which rate hikes will pause. Thus, "being close to neutral"...(read more)

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MBS RECAP: Bonds Ignore Econ Data in Favor of Next Week's Fed Events

Posted To: MBS Commentary

Bonds began the day in modestly stronger territory. While they spend a small amount of the day trading a small distance away from those opening levels, that time and distance was never big enough to cause any concern. In short, the "consolidation" we'd hoped to confirm by seeing 10yr yields remain under 2.92% this week has officially been confirmed. If you'd prefer to approach this from a purely empirical standpoint where we forget that the Fed is a big deal next week and that traders aren't all robots, we could simply say that a slightly stronger Retail Sales report was offset by weaker performance in stocks to leave bonds to trade in line with opening levels by the end of the day. Whichever reality you choose to live in, the fact remains that next week has a fairly big...(read more)

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Mortgage Rates Preserve Most of Last Week's Gains

Posted To: Mortgage Rate Watch

Mortgage rates didn't move much today, and that's arguably a good thing. When the week began, we discussed the need for rates to cool-off after last week's rapid drop. Doing so would improve our chances of seeing recently lower rates stick around for more than a fleeting moment. Now here we are on Friday with the average lender not too far from last Friday's 3-month lows. Each passing day this week saw underlying market activity die down as investors circled the metaphorical wagons ahead of next week's big Fed announcement. Much of the recent improvement in rates has come courtesy of the market's read on the Fed. They're expected to be more "dovish" (i.e. more friendly in terms of monetary policy and rate hikes, ostensibly in response a growing case for economic deceleration). While various...(read more)

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Housing Forecasts Are Getting More Consistent

Posted To: MND NewsWire

Consistency can be boring, but in crazy times it can also be reassuring, even comforting. While they differ on the specifics, economists, at least those in the housing industry, seem to be coming together with much the same outlook and many of the same caveats for the next year or so. Fannie Mae's Economic and Strategic Research (ESR) team is among those who see economic growth slowing i n a more-or-less natural way , and housing's current woes settling into stability. Unless.... ESR's December Economic Developments forecasts the economy will finish the fourth quarter with 2.6 percent annualized growth, down from 3.5 percent in Q3. Over the entirety of 2018, growth will have been at a 3.1% rate, the fastest of the current expansion, slowing to 2.3 percent next year as the boost from federal...(read more)

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MBS Day Ahead: This Would Show That Bonds Are Serious About Considering Even More Gains

Posted To: MBS Commentary

If you've truly come to an appreciation of the gravity of bonds' big picture headwinds over the past 2 years, then the past 5 weeks may feel like a stroke of luck so good that it has to change any day now. More than a few bond analysts were worried about a bigger, sharper bounce when yields first began to rise from longer-term lows on Monday morning, but the sell-off has been very gentle. Without a sharper correction that takes us higher up in the recent range, the fear is hard to quell. Are we living on borrowed time? Have we been allowed into this exclusive club by accident? Are we having some sort of reasonably good dream, destined to wake up at any moment? I could go on and on (and have!) about why 10yr yields in the 2.8-2.9% range make a fair amount of sense right now, but that...(read more)

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Compliance and Documentation Products; Loan Limit Changes in the Primary Markets

Posted To: Pipeline Press

Lots of folks in the mortgage biz like statistics and odds. They may not remember them, but they like them. (As Marcus L. writes, “People still play the lottery even though most of us can't get the USB in the first time correctly and those odds are 50/50.”) Plenty of home loans are impacted by student debt. For every 100 students who enroll full-time in college or university, 42 percent will graduate within four years and 18 percent more will graduate within six. This means that 40% of college students get all the benefits of student debt without obtaining a degree. And put another way, of those 60 students of every hundred who graduate, 42 will leave with student loans and five will default on those loans by the age of 33 . For the 40 who don’t graduate, 10 will default on...(read more)

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MBS RECAP: Bonds Continue Calming Before Next Storm

Posted To: MBS Commentary

Whether or not next week's Fed announcement proves to bring a winter storm for bond markets remains to be seen. That said, if anything is going to do the trick, that's the best chance we have. Between now and then, bonds aren't quite sure what to do with themselves, as evidenced by their relative absence of movement today. It wasn't as if bonds simply ended unchanged after being much higher and lower on the day. There just wasn't much movement in either direction. The only temporary exception was seen in the morning hours before the domestic open in response to the European Central Bank's announcement and subsequent Mario Draghi press conference. As soon as European markets closed for the day, bond yields quickly returned to pre-ECB levels and drifted sideways into the...(read more)

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Mortgage Rates Edge Back Down Toward Long-Term Lows

Posted To: Mortgage Rate Watch

Mortgage rates fell moderately today, helping them move part of the way back down toward their lowest levels in more than 3 months (seen back on Friday). The average lender continues quoting rates that are roughly 3/8ths of a percentage point lower than the highs from early November. Last Friday's low rates marked the culmination of the strongest winning streak for rates of 2018. We've been in a bit of a holding pattern since then, with next week's scheduled announcement from the Federal Reserve likely serving as the motivation for the next (and probably last) big wave of momentum for the year. "Big wave" is more of a relative term, perhaps. It may only end up being "big" relative to the current, fairly flat week leading up to it. Loan Originator Perspective Bonds continued hovering in recent...(read more)

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Not Just the Season; MBA Predicts New Home Sales Down Sharply

Posted To: MND NewsWire

The Mortgage Bankers Association (MBA) added a little more evidence to the pile indicating a rather rapid slow-down in the housing market. MBA's Builder Application Survey (BAS) data for November shows mortgage applications for newly constructed home purchases falling by 14 percent compared to October. The MBA data is not adjusted to account for seasonal variations, and while sales nearly always decline this time of year, applications were also down 11 percent compared to November 2017. Based on the survey data and assumptions about market coverage and other factors, MBA estimates new home sales were running at a seasonally adjusted annual rate of 627,000 units in November. This is down 6.8 percent from the October estimate of 673,000 units. On an unadjusted basis the estimate is for 45,000...(read more)

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MBS Day Ahead: Clear Correction May Be Finding Clear Ceiling

Posted To: MBS Commentary

The first 3 days of this week have offered a clear correction/consolidation to the strong rally of the previous month. This had as much to do with timing and technicals as anything else. In other words, the rally brought yields so much lower, so quickly (relative to other attempts to rally in 2018) that it would have been a surprise to see it continue, especially in the week leading up to an important FOMC Announcement. In fact, much of that rally is predicated on the FOMC Announcement happening in a certain way next week. Given the recent Fed speeches, markets expect more dovishness next Wednesday. The drop in yields equates to the "pricing-in" of the dovishness. Reasonably strong jobs data last Friday (weaker NFP, but strong unemployment and wages) caused investors to question the...(read more)

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Books by Lenders, For Lenders; False Claims Act Rears it's Head; LO Products and Services

Posted To: Pipeline Press

“Why do people pay to go up tall buildings and then put money in binoculars to look at things on the ground?” It turns out that, in terms of grabbing their pieces of ground, first-time home buyers were more active in the first three quarters of 2018 than at any time since 2005, per Genworth Mortgage Insurance . Lenders wish they would be as active: Mortgage lenders are facing an even less profitable environment as purchase and refi biz fell for the ninth straight quarter. Fannie Mae's Q4 2018 Mortgage Lender Sentiment Survey found that the outlook for profit among lenders in the fourth quarter reached an all-time survey low across all loan types: GSE-eligible, non-GSE-eligible, and government. "Competition from other lenders" was cited by survey participants as the top reason for...(read more)

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MBS RECAP: MBS Handily Outperform Treasuries as Consolidation Continues

Posted To: MBS Commentary

Today's trading session was far less eventful than anything else seen in the past few weeks, both in terms of movement and volume. Although Treasury yields were higher, most of the increase came in the overnight session, and additional volatility was minimal throughout the day. By the time we get to MBS (as opposed to Treasuries), things were even more calm . Fannie 4.0 coupons were almost perfectly unchanged compared to 10yr Treasuries which lost more than a quarter of a point in price. At least some of the pressure may have been due to the fact that it's a 3/10/30yr auction week with today being 10's. It's not uncommon for bonds to lose a bit of ground heading into auctions Today was no exception with most of the losses coming BEFORE the somewhat weak 10yr auction. The morning's...(read more)

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Mortgage Rates Could Go Even Higher

Posted To: Mortgage Rate Watch

Mortgage rates rose more noticeably today as a part of a 3 day bounce after hitting the lowest levels in roughly 3 months at the end of last week. Whereas yesterday's increases weren't really worth mentioning, today's hurt--depending on the scenario. In general, this bounce was to-be-expected. Granted, we can't ever know exactly how big such bounces will be or how long they'll last, but when rates improve for as many days in a row as they recently had, a bounce is increasingly inevitable. So how bad is this one? Not too bad so far. I'm not thrilled about the "3 days" part, but really it's only been today that counts (the other two days were effectively flat). As such, tomorrow and Friday become a bit more important by way of assessing any momentum ahead of next week's Fed Announcement (which...(read more)

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Lenders Looking to New Tech as Pessimism Over Profit Margins Grows

Posted To: MND NewsWire

Lenders continue to be pessimistic about their profit outlook as 2018 draws to an end. Fannie Mae said its fourth quarter 2018 Mortgage Lender Sentiment Survey found the profit outlook reported by respondents at an all-time survey low. This was true whether they were talking about purchase or refinance mortgages or about GSE-eligible, non-GSE-eligible, or government loans. It was the ninth consecutive quarter that lender outlook has declined. Smaller slices of a shrinking pie sums up the reasons given by lenders for their lowering outlook, especially for refinancing. When asked whether refinancing demand had increased over the past three months for any loan type, or if they expected it would over the next three months, positive answers did not break 5 percent. Responses to the same questions...(read more)

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MBS Day Ahead: Bonds Have Lots on Their Mind, But Beware The Bounce

Posted To: MBS Commentary

As we begin the third day of moderate weakness in bond markets, it's safe to say that we're looking at the correction and/or consolidation that we expected to see as of the end of last week. Bonds wouldn't have needed any other reason apart from the preceding rally to bounce. But as that process unfolds, it's been complicated by other competing stimuli. These include but are not limited to Brexit-related drama, trade war news, the stock lever (stock prices and bond yields moving together), the Treasury auction cycle, and year-end trading position housekeeping. Depending on when you look, you might see one of these factors having more of an influence than another. For example, yesterday saw US bonds take more guidance from Europe while today has seen more of a stock lever effect...(read more)

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Non-QM and Warehouse Products; STRATMOR Tech Insight Study

Posted To: Pipeline Press

Who among us has pushed for abolishing the mortgage-interest deduction, supported getting rid of government subsidies for the 30-year fixed-rate mortgage, putting Fannie and Freddie into receivership, and supported ending the sweep of F&F’s profits into the Federal Government? The answer is Dr. Mark Calabria, currently working for Mike Pence, and if confirmed by the Senate, he’ll replace Mel Watt as the Director of the FHFA , overseer of Freddie and Fannie. As mentioned yesterday in this commentary, there are plenty of ways the government can reduce its footprint in home lending: lowering LTVs, raising gfees, cutting back on non-owner or high-balance lending, adjusting the QM patch for DU & LP approval, and so on. Confirmation will take months, but given this personnel change...(read more)

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