Did You Know?
|
There are hundreds of Sheriff sales each month in Allegheny County. How long would it take you to research properties through the county assessment site or the newspaper? Hours? Days? Weeks? Time is money in foreclosure investing. We have already done the property research for you. Our database contains all of the current and past sheriff sale properties with complete property details. |
|
|
Financial News |
|
Mortgage News Daily
|
Mortgage News Daily
|
-
Bonds Hold On to NFP-Driven Gains Despite Some Push-Back
Bonds Hold On to NFP-Driven Gains Despite Some Push-Back
Whether you view it as a perfectly logical reaction to NFP coming in at 175k vs 243k or a bit too much of a rally relative to the motivation, no one could argue that bond yields were destined to drop after seeing this morning's jobs report. But employment data is only worth so much these days. The main event continues to be inflation and we were reminded of that with the 10am ISM Services data. The ISM headline was actually rate friendly, but the inflation component was the bigger mover, and it was not friendly. Bonds lost almost all of their post-NFP gains in response, but managed to level off in the PM hours. Combined with the 2 previous days of green, the net effect is the best closing levels since April 9th.
Econ Data / Events
Nonfarm Payrolls
175k vs 243k f'cast, 315k prev
Unemployment Rate
3.9 vs 3.8 f'cast/prev
Wages
0.2 vs 0.3 f'cast, 0.3 prev
ISM Non Manufacturing
49.4 vs 52.0 f'cast, 51.4 prev
ISM Prices
59.2 vs 55.0 f'cast, 53.4 prev
Market Movement Recap
08:43 AM Modestly stronger overnight with additional gains after NFP data. 10yr down 8bps at 4.50, and MBS up 3/8ths
10:15 AM losing some ground after ISM. MBS still up 11 ticks (.34) and 10yr down 5.3bps at 4.526
02:16 PM gradually bouncing back and now sideways in the middle of the post-NFP range. MBS up 3/8ths. 10yr down 7.3bps at 4.507
04:49 PM Very flat since noon with MBS up 11 ticks (.34) and 10yr yields down 8bps at 4.499.
-
Rates End Week at Lowest levels since April 9th
It was an action-packed week for the housing and mortgage market. Wednesday's Fed announcement was the highlight, but we also got several economic reports that caused rate volatility. Thankfully, it was mostly the good kind. The week got off to a slightly stronger start with Monday's only major rate news being updated borrowing estimates from the Treasury Department. Why would such a thing matter? Treasuries largely dictate day to day interest rate momentum in the U.S. because they are abundant, simple, and as close to risk-free as it gets. As such, Treasuries are the universal yardstick for all other debt in the U.S., including MBS, the mortgage-backed securities that have the most direct impact on mortgage rates. This is why Treasury yields and mortgage rates correlate so well over time. Treasuries can take cues from several sources. One of the biggest is the change in the outright level of supply. In other words, how much more debt is the U.S. government issuing in the upcoming quarter? If that number is higher than expected, it puts upward pressure on rates. Monday's news from Treasury was fairly palatable and roughly in line with market expectations, which allowed rates to stay steady. Things changed on Tuesday when the Employment Cost Index (ECI) data came out. This is one of several reports that the Fed has mentioned as being important to the rate outlook recently. Higher numbers mean higher rates, all other things being equal. This week's installment showed Q1 costs at 1.2, up from 0.9 in Q4 and well above the market consensus of 1.0. Rates hit the highest levels of the week as a result, both in terms of Treasury yields and mortgage rates.
-
Stronger Start For Bonds After Cooler Jobs Report
On most months in modern economic memory, a gain of 175k payrolls would be welcome news for the labor market. Depending on the context, it still is. But in today's case, it's much lower than the market expected and not a high enough number to justify the 4.6+ 10yr yields seen yesterday. Bonds rallied instantly when the news printed, but one rate-friendly jobs report is only a fine tuning adjustment to a rate environment dominated by inflation concerns.
Evidence of inflation concerns was available in real time today following the ISM Services data. The headline was weaker, which would normally be good for bonds. But the price component was quite a bit higher, which was enough for the bond market to react negatively.
Despite the push-back, bonds remain in much stronger territory and have now mad solid gains 3 days in a row. Yields are back in line with the afternoon of the last CPI day on April 10th.
-
Fee Collection, S&D Products; Webinars and Training; Rates Ease on NFP Miss
When camping here at Yosemite National Park*, you quickly realize that there is one basic product here that has never changed: nature. Mortgage products, however, are always shifting and changing. How?s your adjustable-rate mortgage offering, and training, for LOs? The ARM share of applications last week reached nearly 8 percent. Builder business is another segment always of interest to lenders and vendors, and today?s TMC ?Rundown? at noon PT features Robert Dozier with Palmetto Citizens discussing builder business, a credit union building out its mortgage presence, and what it was like being in the room with the team putting together the housing related statements for Biden?s State of the Union address. (Found here, this week?s podcasts are sponsored by Essex Mortgage. Essex specializes in providing exceptional mortgage subservicing solutions tailored to meet your specific needs. Looking to capitalize on your excess servicing strip? Check out Essex?s servicing offerings today! Hear an interview with originator Josh Mettle on the massive changes that are coming in July with the buyer-agent commission issue.) * (I am only bragging a little: sleeping on the ground and then getting up at 4AM to send this out with a flashlight from a tent sitting Indian style is no picnic. It is amazing to me that I have internet while surrounded by granite mountains.) Lender and Broker Products, Software, Services ?Are you struggling with scratch and dent loans or small MSR pools? This is our sweet spot at PR Mortgage Investment. We specialize in transforming challenges into opportunities for Independent Mortgage Bankers. Let us turn your unsellable loans and underappreciated servicing into cash. Contact Shane O?Dell or call 602-402-1599 to ensure you receive the fair bids your portfolio deserves.?
-
Mortgage Rates Sneak to 2 Week Lows With Important Data on Deck
The bond market--which dictates interest rates--had a generally favorable response to yesterday's update from the Federal Reserve. While the Fed didn't cut rates, and while they're increasingly acknowledging that rate cuts are moving farther into the future, they still think data will evolve in a way that results in the next move being a cut as opposed to a hike. Positive momentum continued today, in spite of several economic reports that argued the opposite case. Had these reports been top tier market movers, the counterintuitive victory would have been highly unlikely. Friday is a different sort of day in terms of economic data. The big monthly jobs report is in a league of its own when it comes to labor market data, and while it may not currently be the most important report on any given month, it's a consistent 2nd place behind CPI. After the jobs report, we'll get a strong 2nd tier contender in the form of ISM's service sector index. These two reports have the power to accelerate or reverse the friendly tone seen in rates over the past 2 days. As for today, the average lender inched just barely to the lowest levels since April 12th. This wasn't the case in the first half of the day, but as bonds improved, many lenders were able to issue mid-day reprices.
|
|
|
SUPPORT THIS SITE!
|
|
Financial News 
