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Home mortgage rates and real estate news - CNNMoney.com

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.

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.

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.

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.

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.

This Texas military town has nearly closed the black and white homeownership gap

Killeen, Texas is a relative oasis of racial parity when it comes to homeownership. The reason: Fort Hood.

Flip this house! Zillow plans to buy and sell homes

Read full story for latest details.

Looking to buy your first home? Good luck with that

House hunting is going to be difficult this spring ? especially for those looking to become owners for the first time.

Yes, you can still deduct interest on your home equity loan ...

The new tax law has created a lot of confusion over whether tax filers may still deduct the interest they pay on home equity loans and lines of credit. The IRS says that you can, but only if the money is used to improve your home.

Warning signs in the housing market aren't hurting Zillow

Shares of Zillow have soared this year. But other housing-related stocks have dipped, and even Zillow's top economist is worried the real estate market may cool off.

Home sellers are making huge profits. So why aren't more people selling?

It's the most profitable time to sell your home in more than a decade, so why aren't more home owners listing?

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.

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.

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.

Sign of the Times: New Office Space Created in Retail's Tumult

Normandy Real Estate Partners’ $133 million deal for the upper portion of ABC Carpet’s flagship store is an example of office space edging into territory that once was retail’s domain.

Want to Buy a Luxury Hotel in the U.S.? Try China's Insurance Regulator

When Chinese regulators seized control of Anbang Insurance, they took ownership of more than a dozen luxury U.S. hotels. Now, as the government looks to sell, it faces a problem: The buildings likely are worth less than what Anbang paid only a couple of years ago.

Mortgage News Daily

MBS RECAP: Lowest Yields of The Month

Posted To: MBS Commentary

June began with yields plateauing after rising from the Italy-inspired lows of late May. 10yr yields managed to avoid breaking above 3% until last week's much-anticipated Fed Day. Even then, the Fed and the ECB ultimately gave way to the slow, steady rally that's persisted into the current week. Until today, that rally was nice, but forgettable, as it merely got us back in line with the lowest levels of the narrow range seen so far this month. Today's rally is arguably forgettable as well. It hasn't marked a meaningful departure from the pace of the past few sessions. In fact, the domestic trading hours were just as boring as yesterday's. The only difference today is that we started with a bit of a lead thanks to overnight trade war headlines. As soon as Chinese equities...(read more)

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Mortgage Rates Barely Budge Despite Market Gains

Posted To: Mortgage Rate Watch

Mortgage rates didn't move much today, despite a somewhat decent improvement in bond markets. Overnight, trade war brinksmanship between the US and China had investors seeking the safe haven of bond markets. Excess demand for bonds pushes rates lower, all other things being equal. As is often the case with safe haven trades, US Treasuries saw more of the benefit than the bonds that underlie mortgage rates. The net effect is a move back in line with last Friday's levels for the average mortgage lender. Loan Originator Perspective Bond markets rallied as trade war fears grew today. Tariffs hurt economic growth, and boost bonds. I'm not sure rate sheets reflect the improvements yet, will float today's loans overnight and hope gains get passed along. - Ted Rood Talks of a Trade War continue to...(read more)

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A New CFPB Director? Perhaps That's Not the Intention

Posted To: MND NewsWire

The White House announced on Monday the nomination of Kathy Kraninger as head of the Consumer Financial Protection Bureau (CFPB) to replace acting director Mick Mulvaney. The appointment caught many in Washington by surprise as Kraninger is not widely known and has not previously been active in the consumer arena according to many reports. Kraninger has been an associate director at the Office of Management and Budget (OMB), which Mulvaney also serves as director, for about a year. At OMB she oversees $250 billion in funding for seven cabinet departments and 30 agencies, including the Department of Homeland Security. Her previous role was as a staff member of the Senate Appropriations Subcommittee on Homeland Security. She has also worked for the Department of Transportation. Looking beyond...(read more)

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Housing Starts Rebounded in May, Permits Still Lag

Posted To: MND NewsWire

Residential construction data was mixed for May as reported on Tuesday by the U.S. Census Bureau and the Department of Housing and Urban Development. Housing starts recovered strongly from their April loss while permits continued lower. Housing starts were at a seasonally adjusted annual rate of 1,350,000, a 5.0 percent improvement from April's revised, (from 1,287,000) 1,286,000 units. The May number was up 20.3 percent from the estimate reported for last May of 1,122,000 housing starts. Starts were right at the top of the estimates provided by analysts to Econoday . They were looking for results in the range of 1,270,000 to 1,350,000 with a consensus of 1,320,000. Construction was begun on a seasonally adjusted 936,000 single family houses, a 3.9 percent month-over-month gain and up 18.3...(read more)

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LO Training and Events; Trade Turmoil's Effect on Rates

Posted To: Pipeline Press

When I grow up I want to live in a ranch style… shipping container? If you have a builder complaining about lumber costs or labor to frame a house, there’s always metal. “From rooftop decks to custom wood floors, these repurposed shipping containers are anything but boring.” Air conditioning is a must, and the Hapag-Lloyd sign on the side might add character. In other housing news, we have this headline from Florida: “Freedom Mortgage CEO drops $20M on Ocean Ridge Estate.” Nice digs! Upcoming Training and Events Freddie Mac is offering up a, “Discover the Possibilities with Home Possible Mortgages” webinar on June 20th. (Home Possible and Home Possible Advantage are Freddie Mac’s low down payment offerings.) “Join us for this free...(read more)

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MBS Day Ahead: Bonds Begin With a Bang

Posted To: MBS Commentary

You're welcome! I knew if I lamented the slow and boring nature of the week ahead yesterday that I could trick the bond market into doing something exciting. Sure, it was a 50/50 chance that my little ploy could backfire, but at least there would be something exciting to talk about. And now here we are with 10yr yields staring the day down more than 4bps. Fake superstitions aside , bonds have quickly found some inspiration on what began as a dud of a week. As Asian markets returned from yesterday's holiday absence, the blossoming trade tensions between the US and China took a toll on equities markets and helped bond yields move lower. With the help of a bigger jump during the very first hours of overnight trading in Asia (during which, Treasuries are not trading on the cash market)...(read more)

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Fannie Mae June Outlook Turns a Little Cautious

Posted To: MND NewsWire

Despite a slowing rate of economic growth in the second estimate for the first quarter, Fannie Mae's economists are holding firm in their forecast for the remainder of the year. The second preliminary estimate for the quarter was for growth of 2.2 percent, down from the initial estimate of 2.3 percent and off by 0.7 point of the expansion in the fourth quarter of 2017. Fannie Mae's Economic and Strategic Research Group however continue to look for 2.7 percent growth this year, followed by 2.3 percent in 2019. They hedge their predictions with both upside and downside risks. Among the former are potential acceleration of business investment. There are indications of this in the newest report by way of upward revisions to investments in structures, equipment, and intellectual property products...(read more)

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MBS RECAP: Another One of Those Unofficial 3-Day Weekend Days

Posted To: MBS Commentary

These sorts of days (where nothing happens) happen. If you had to bet on a day of the week and a time of year to see them, Summertime Mondays would probably be the safest bet. Overnight volume was almost nonexistent, with much of Asia closed. Domestic volume and volatility was effectively nil with today's trading range falling easily inside Friday's. On a positive note, despite the low volume, any day where bonds begin a new week holding onto gains from the end of the previous week is better than nothing. In that sense, the fact that yields remained well under Friday's 2.937% ceiling in 10yr Treasuries was better than the alternative. That said, I'd look at it more like an unofficial 3rd day of the weekend than a new and meaningful trading session. MBS Pricing Snapshot Pricing...(read more)

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Mortgage Rates Little-Changed to Begin Quiet Week

Posted To: Mortgage Rate Watch

Mortgage rates were sideways to slightly higher today, depending on the lender. The underlying bond market (which dictates rates) was exceptionally quiet. On the heels of last week's important events and without much on the calendar this week, markets may take a couple days to relax. To put that in context, rates have been holding somewhat steady just below long-term highs. Their next major decision will be between pushing into new long-term highs or attempting to move lower for more than just a week or two. "Relaxation," in this context, means we're not likely to see evidence of either this week. Loan Originator Perspective Bonds coasted through a flat session Monday as rates hovered near unchanged. There's scant meaningful data this week to inform markets, I'll be surprised to see much movement...(read more)

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Builder Confidence: Tariffs on Lumber Hurting Affordability

Posted To: MND NewsWire

Builder confidence in the market for new single-family homes ended a three-month slide in May , as the Housing Market Index ticked up two points. This month that two-point gain evaporated as the index slid back down to 68. The National Association of Home Builders (NAHB) said the retreat of the measure, which it sponsors in conjunction with Wells Fargo, in June was, in large part, due to elevated lumber prices. "Builders are optimistic about housing market conditions as consumer demand continues to grow," said NAHB Chairman Randy Noel. "However, builders are increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability . Record-high lumber prices have added nearly $9,000 to the price of a new single-family home since January 2017...(read more)

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MBS Week Ahead: Bonds Try to Confirm Last Week's Victory

Posted To: MBS Commentary

Post-Italian drama, bond yields rose for 2 straight weeks heading into last week's Fed and ECB announcements. They both proved friendly and the positive momentum continued on Friday. The timing of the Italian drama was important because it began helping bonds right as US 10yr yields were hitting 7-year highs. As yields rose back toward those highs early last week, it was fair to wonder if Italy had merely delayed a move to even weaker levels. The response to last week's central bank events suggested--if not proved --that bonds don't need to re-test high ceilings just yet. Moreover, there may even be a chance to rally. To reiterate a word of caution I've offered a few times, the fundamentals--at the very least--would not make a sustained rally easy. It's the sort of thing...(read more)

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Compliance and Construction Products; Legal Changes for Lenders on the East Coast

Posted To: Pipeline Press

Rumors continue to swirl. Will a top-10 bank really terminate hundreds, possibly a thousand, of its retail originators in late July/early August for not meeting minimum production standards? Is Houlihan Lokey out there marketing a well-known company (a provider of compliance outsourcing solutions to lenders and servicers) to Radian, Black Knight, or overseas firms? Are hundreds of lenders engaged in small-scale unpublicized layoffs to eliminate overstaffing? Maybe I am merely making this stuff up. Maybe not. Lender Products and Services The American Bankers Association announced its endorsement of Built Technologies, a Nashville-based fintech company focused on simplifying the administration of residential and commercial construction loans through secure, cloud-based software. Built’s...(read more)

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Americans Sitting on Trillions in Tappable Equity

Posted To: MND NewsWire

Americans are sitting on a nearly unprecedented level of untapped wealth - or maybe sitting IN it is more to the point. A report from Black Knight notes the first quarter of this year saw the "tappable" equity Americans have in their homes rose at what could be a record pace. The company says tappable equity growth is a different metric than simple equity growth as it is the amount that homeowners can actually use. That is, it is the amount of a home's value that can be borrowed against before reaching a combined loan-to-value (CLTV) ratio of 80 percent. Tappable equity grew by $380 billion in the first quarter of 2018. That 7 percent increase is the largest single quarter growth in Black Knight's records, which go back to 2005. Equity growth is usually greatest in the first and second quarters...(read more)

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MBS RECAP: Trade Fears Help Bond Rally Extend

Posted To: MBS Commentary

Fresh fears of trade wars pushed stocks and bond yields lower in the overnight session as the White House promised another wave of tariff announcements in the morning. China retaliated by promising its own tariffs and markets slumped accordingly. By "accordingly," I mean they slumped as much as they have for any other trade war headline after the initial shock wore off--i.e. not too terribly much. Case in point, stocks ended up bouncing back and nearly erasing all of the losses. Bonds, on the other hand, got a bit of an extra boost from the overall momentum following 2 decent days of central bank news, as well as weaker economic updates out of Europe overnight. 10yr yields rallied all the way to 2.889 before bouncing up to 2.922% by the close (still 2.4bps lower on the day). MBS underperformed...(read more)

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Mortgage Rates Inch to Week's Best Levels

Posted To: Mortgage Rate Watch

Mortgage rates fell again today, bringing the average rate just slightly lower on the week. Unlike the past 2 days, there were no big ticket calendar events today. Instead, motivation came from market jitters of new tariff announcements and the ensuing retaliation from China. Markets ultimately decided it wasn't the end of the world (yet) and bounced back in the other direction (higher stocks, higher rates) during the 2nd half of the day. Fortunately, the bounce in rates (via the bond market) wasn't big enough to force mortgage lenders to adjust their rate sheets for the worse. That knife cuts both ways though. If bonds were to merely hold flat by the start of Monday's trading, the implication would be for slightly higher rates to begin the day. Loan Originator Perspective Rally makes it time...(read more)

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MBS Day Ahead: Here We Go Bonds, Now, Here We Go!

Posted To: MBS Commentary

Bond markets have their rally caps on after making it through both central bank announcements this week without suffering any crazy damage. In fact, each day brought modest improvements and now today stands the chance of bringing enough of a rally to "confirm" those improvements from a technical standpoint. That's about the size of it at the moment. We're watching and waiting with fingers crossed. It's much the same as a sporting event where our team just made a good defensive stand and now has the ball on offense . They may or may not score, as always, but it's nice to have a chance! The only thing that troubles me about rooting for a bigger rally is that the justification for sustained improvement will be really hard to come by without something changing about the...(read more)

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Compliance, Fraud Prevention Products; Lenders' Digital Notes and Closings

Posted To: Pipeline Press

Taking a tour around the nation…No one has ever used the term “bespoke” in describing any place I’ve stayed. I barely know what it means. But if you’ve got the bucks, and want a nice place to bunk down in Hawai’i, here you go . Marlin jerky? 5,100 miles and six time zones away, a Martha’s Vineyard house that the Obamas have vacationed in sold for $15 million , $7.5 million under original asking. Falling demand on the high-end? In-between, here’s an article on the lay-offs to expect in the Dallas-Fort Worth lending industry. But Freddie Mac announced a new partnership with re-employment solutions company NextJob to provide job search assistance to current and aspiring homeowners living in high-needs and other persistent poverty areas . Digital...(read more)

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MBS RECAP: ECB Surprises Markets, But Bonds Liked It

Posted To: MBS Commentary

We knew the ECB (European Central Bank) was going to have to address its bond buying program soon, because it expires after September. Several speakers had alluded to the likelihood that it would be addressed in today's announcement. Markets took that to mean that Draghi would finally talk about the probable tapering announcement at the subsequent meeting. Instead, the ECB just went ahead and pulled the trigger --several months in advance. In other words, they will indeed continue buying bonds through September. They'll buy half as many over the next 3 months and then be done by 2019. This eventuality was somewhere in the realm of the market's expectation, even if we weren't planning on confirming it so soon. The early announcement caused a bit of bond market weakness at first...(read more)

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Mortgage Rates Are Actually Unchanged This Week!

Posted To: Mortgage Rate Watch

Mortgage rates moved LOWER today, following a policy announcement from the European Central Bank (ECB). That claim runs counter to almost any other mortgage rate headline in the mainstream news because big media is in the habit of quoting Freddie Mac's weekly rate survey. That's not necessarily a bad thing as long as you understand the underlying timelines. Unfortunately, most news outlets gloss over those important details or leave them out completely. Specifically, Freddie's survey is heavily weighted toward responses that come in on Monday and Tuesday, even though Wednesday is also technically included. Thursday and Friday are never counted. That means that any rate volatility that hits during the second half of the week typically isn't captured in Freddie's numbers. Long story short , because...(read more)

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Sales to Slump as Costs Drive Builder Bottleneck

Posted To: MND NewsWire

The Mortgage Bankers Association (MBA) is projecting a decline in new home sales in May. Its computation is based on information from its Builder Application Survey (BAS) which collects information on mortgage applications for new home purchases from the mortgage subsidiaries of home builders nationwide. Their non-seasonally adjusted BAS data indicates that applications were down by 4.0 percent from April and by 0.5 percent compared to the previous May. Based on this information and other information regarding market coverage and other factors, MBA estimates that new homes were sold in May at a seasonally adjusted annual rate of 626,000 units. This is down 4.6 percent from the April rate of 656,000 units. Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting, said, "Despite...(read more)

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MBS Day Ahead: Bonds Cheer ECB's Mic Drop

Posted To: MBS Commentary

Today's domestic session begins with a positive reaction to the European Central Bank (ECB) announcement. The ECB broke from tradition by dropping their bigger bombs at the 7:45am announcement as opposed to Draghi's 8:30am press conference. They also arguably dropped the proverbial mic in a way we haven't often seen by making definitive statements about bond buying and rates well in advance of any changes. Specifically, the ECB will taper its bond buying purchases by 50% in Oct-Dec, and then be done buying new bonds. They'll still be reinvesting proceeds until further notice and they won't be considering a rate hike until the summer of 2019. At first glance, the tapering announcement seems like a problem for bond markets. In fact, it did cause a bit of initial weakness,...(read more)

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Digital Marketing Products; Freddie and Fannie Secondary Activity Picks Up

Posted To: Pipeline Press

The U.S. Bureau of Labor Statistics projects increasing customer usage of technology will reduce the number of bank tellers by 42,000 through 2026. Given their average pay is a little over $2k per month, I can see why some of the smarter ones are being wooed and hired as loan officer trainees. (And yes, the BLS mentions loan officer forecasts .) While we’re talking about banks, and possible good news for them, Goldman Sachs analysts believe Amazon won’t go so far as to open a bank , due to the extra regulatory scrutiny and credit risk. Amazon, however, will likely continue to provide supplementary financial services and it has partnered with various banks on their financial products already, and has a large pool of customers for financial products. Lender Products and Training Learn...(read more)

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MBS RECAP: Mostly a Knee-Jerk Reaction to Fed Dots and Powell

Posted To: MBS Commentary

In one sentence, today's Fed rate forecasts pushed bonds into weaker territory at 2pm and Jerome Powell's press conference helped to recover most of the losses. The forecasts showed a slightly higher probability of 4 rate hikes in 2018. The average "dot" (so named for the dot plot on which the forecasts appear) also moved a hair higher in 2019 and 2020. This was the key market mover at 2pm, even though the Fed announcement was heavily edited from its previous version. It probably didn't help that most of the edits were easier to argue as "unfriendly" for bonds. That said, it would be harder to argue they were unexpected or unjustified. Powell's press conference saw bonds bounce back and recover most of the losses, starting at 2:30pm. He said he wasn't...(read more)

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Mortgage Rates Higher Following Fed Forecasts

Posted To: Mortgage Rate Watch

Mortgage rates moved higher today, following the Fed's much-anticipated policy announcement. Although the Fed changed quite a few words from the announcement's previous iteration (far more than normal), it wasn't the announcement itself that did the damage. Rather, it was the Fed members' economic projections, which include an assessment of where the Fed Funds Rate will likely be at the end of the next few years. Specifically, a few of the Fed members who'd been holding out for slightly lower rates in 2018 moved their forecasts up enough to increase the odds of a 4th rate hike by December. This was already a strong possibility, but before today, those in the "3 hike" camp had a stronger case. While the Fed's rate doesn't directly affect 30yr fixed mortgage rates, shifts in the Fed's rate hike...(read more)

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Differences Between Previous and Current FOMC Statements

Posted To: MBS Commentary

Information received since the Federal Open Market Committee met in MarchMay indicates that the labor market has continued to strengthen and that economic activity has been rising at a moderatesolid rate. Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low.declined. Recent data suggest that growth of household spending moderated from its strong fourth-quarter pace,has picked up, while business fixed investment has continued to grow strongly. On a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to 2 percent. Market-based measures of inflation compensation remain low; survey-based measuresIndicators of longer-term inflation expectations are little changed, on balance. Consistent with its...(read more)

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