Category Archives for "Mortgage Industry News"

“Unraveling the Mortgage Market: A Comprehensive Recap of June 21, 2024”

Despite minor market fluctuations, this week was generally uneventful. This was due to an early morning rally influenced by weak PMI data from Europe and a reasonable decline following stronger American PMI data. To be specific, the Services PMI from S&P global reached its highest point in over two years, making it some of the freshest June data available. Any contradictory data will have to wait until next week at the earliest. However, even with these small shifts in the market, the overall impact remained minimal, marking the week as unremarkable.

Econ Data / Events:

– The S&P Services PMI is recorded at 55.1, having been predicted at 53.7 (previous figure was 54.8).

– The S&P Manufacturing PMI is calculated at 51.7, as opposed to the predicted 51.0 (previous figure was 51.3).

– Existing Home Sales reach 4.11m, narrowly exceeding the estimated 4.10m (previous figure stood at 4.14m).

– Leading Economic Indicators register -0.5, pushing the predicted -0.3 (previous figure was -0.6).

Market Movement Recap:

– 09:36 AM: Noticeable overnight gains parallel with Europe’s situation. The 10yr drops 4bps to hit 4.22 while the MBS rise by 3 ticks (.09).

– 10:43 AM: Post-PMI data release results in a decline, with the 10yr now up 1.2bps and MBS falling 2 ticks (.06).

– 12:45 PM: Mild recovery following the morning sell-off leaving MBS unchanged and the 10yr slightly down at 0.3bps resting at 4.258.

– 04:37 PM: Low afternoon volatility, with MBS increasing by 1 tick (.03) and 10yr slightly down by 0.4bps at 4.256.

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“Unravelling the Complex World of Mortgage Rates: A Comprehensive Study from 2024”

Following an uncertain beginning of the year, rates along with the outlook for inflation started to gain traction in May. The trend of improvement escalated in June, albeit, the events of this week did not have any significant sway on the macrocosm. As the market was set to close for Juneteenth on Wednesday, Tuesday’s Retail Sales report was arguably the most noteworthy economic data. The report showed results slightly under expectations and was adjusted downwards for the prior month. In response, rates moved marginally back towards recent lows, but did not surpass them. Contrary to some reports suggesting that mortgage rates have hit a several-month low, such claims are usually based on Freddie Mac’s weekly survey. This survey is widely known for its minor inconsistencies with the actual figures due to its methodology and scheduling. Looking at both the 10-year Treasury yields and mortgage rates, the actual scenario was much more stagnant, rather than showing any significant progression. Apart from Retail Sales data, the S&P Global’s PMI data unveiled on Friday caused the most noteworthy market reaction, showing the strongest figures in over two years, albeit just slightly. Higher economic data generally correlates with escalating rates. The impact of these data points, when compared to the Retail Sales report earlier in the week, shows relatively minor variations. Their impacts were nowhere near the scale of the previous week’s CPI data. Moreover, these data points presented contradictory arguments, which helped to maintain the rate spectrum in check. In essence, the majority of June’s progression was in place before this week started. Current rates are nearing a longer-term uptrend—a trend that will be tough to break unless upcoming economic data for June indicates economic slowdown and reduced inflation. Yet, it will be a few weeks before most of this data becomes available.

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“Exploring the Impact of Economic Reports on Mortgage Rates: A Comprehensive Analysis”

Previously overshadowed in the U.S. by ISM PMIs, S&P Global’s PMI (earlier known as Markit) is gaining significance amidst rising data reliance. It is seen that market stakeholders are now more open to trading based on initial S&P PMI announcements, which are some of the earliest monthly economic pointers. For instance, the recent announcement featuring the highest Services PMI in over two years has triggered a downturn in bonds, despite gains overnight, prompted ironically by weak PMI statistics from Europe. What makes these metrics noteworthy is that they precede ISM PMIs by a fortnight. The summary does not quote any specific source for the information.

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“Latest in Mortgage News: Market Updates & Innovative Solutions for 2024”

Four decades ago, Don Henley’s “Boys of Summer” was a popular hit. Fast forward to the present, while the Hawaiian beaches are plentiful, in Honolulu, it’s a different story with the business-centric MBAH conference taking the limelight. MBA Chairperson, Mark Jones highlighted President Biden’s stringent stand against what he termed as “junk fees” during his conversation. Indeed, shortly after President Biden addressed the nation, the CFPB declared intent to scrutinize these so-called “junk fees” in relation to mortgage closing costs.

Contrary to the CFPB’s perspective, said “junk fees” encompass crucial components in the lending procedure such as flood certificates, credit reports, and appraisals – all of which are beneficial to borrowers, investors, and the general taxpaying population. In a previous session, the chair of the House Financial Service, Congressman Patrick McHenry, criticized CFPB Director Chopra, claiming his standalone agency is morphing into a political tool for President Biden.

For a deeper understanding of this claim, attorney Brian Levy narrates in his latest Mortgage Musing analysis hinting at a potential CFPB (Consumer Financial Politics Bureau?) political favoritism over good consumer protection practices through their recent policy actions which includes their “junk fee,” “name and shame” regulation, and other policy strategies.

Lastly, this week’s podcast, which will be available after 8:30 AM ET, is courtesy of Quontic. They aim to aid creditworthy prospective homeowners secure home loans and the approval they’ve been aspiring for. The podcast features an enlightening interview with FundingShield’s Adam Chaudhary, who discusses emerging fraud tactics in the wire and title sectors and elaborates on how different stakeholders are leveraging AI for their respective interests. The source of this text is kept undisclosed as per the request.

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“Deciphering the Impact: A Comprehensive Recap of Mortgage Market Activity for June 20, 2024”

The stock market experienced unexpected fluctuations during the past two trading days – bonds yields increased, despite overall weak economic data. The only rational explanation for these inconsistencies would be the market’s deep concern about potential inflation arising from increased prices in the Philly Fed. Alternatively, the variation in trading patterns could have sparked Tuesday’s profits, now balanced by a corresponding loss. However, neither of these speculations holds weight due to the miniscule size of each instance. Bond yields are still just under recent bottoms and have maintained a strict range since the rally last week ended.

Key Economic Data and Events:

– Unemployment Benefits: 238k versus 235k forecasted and previous 243k.
– Continuous Claims: 1828k against 1810k predicted and 1813k previously.
– Philly Fed Index: Modest 1.3 compared to 5.0 estimated and 4.5 before.
– Philly Fed Prices: 22.5 against previous 18.7.
– Housing Starts: 1.277 million under the 1.37 million forecast and previous 1.352 million.

Market Movement Brief:

At 09:46 am, bond performance was weaker than expected after data release, with a 10year increase of 6bps to 4.284 and MBS reducing by 6 ticks.

At 11:39 am, bonds gradually moved away from their low, with MBS decreasing an eighth, and the 10year rose 4.5bps to 4.269.

By 02:32 pm, bonds experienced slight recovery, with a 10years increase of 2.6bps to 4.249, though MBS continued to fall, nearly an eighth.

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“Understanding the Current Mortgage Rate Environment: An Analytical Perspective”

Wednesday saw the closure of the bond market in observance of the Juneteenth holiday, consequently affecting the operations of mortgage lenders, some of whom were unable to adjust their mortgage rates according to market trends. The rates seen today mirror those prevalent on Tuesday morning, despite a slight weakening in the bond market. Bond weakening usually implies reduced prices and escalated yields or rates. While mortgage rates mostly move in tandem with the bond market, slight movements can sometimes display exceptions. This is the scenario witnessed today as the dip is just minimal enough to maintain mortgage-backed bonds on par with levels seen on Tuesday morning. Notwithstanding the improvement seen by Tuesday afternoon, lenders did not find it necessary to revise their pricing due to the negligible magnitude of the changes. As such, the prevailing top tier conventional 30-year fixed rate continues to be a tad higher than 7%.

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“Unveiling the Shifts in Mortgage Market: Morning Update – June 20th, 2024”

Bonds showed an immediate but brief positive response to the Retail Sales data on Tuesday. This positive trend shortly fizzled out, and by 11am, the yields experienced a minor increase within a confined range. Consequently, bonds started to see some gain, which carried on until market closing.

It was quite difficult to rationalize this upward surge without considering the effects of positional trading. We entertained the idea that it could be due to traders choosing to close their short positions as liquidity started dwindling, ahead of the holiday closure on Wednesday.

Interestingly, one often observes such a shift towards the opposite direction following this kind of activity, typically occurring just before the weekends and more so during long holidays. The unusual inertia witnessed this morning aligns well with this notion, though it was somewhat more pronounced.

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“Exploring the Intricacies of Mortgage Industry Trends and Legislation: An In-depth Outlook”

Channeling the sentiments of Taylor Swift’s “Cruel Summer”, vendors and lenders are hoping for a warm, merciful summer. The ubiquitous joke, “If you ever feel cold, just stand in a corner for a while, they’re usually 90 degrees,” bears no relevance as most regions in the U.S. are experiencing scorching heat.

Celestial phenomena bring us to the Summer Solstice today, differing in impact depending on your location on Earth. This day corresponds to the Earth’s axial tilt and the Tropic of Cancer, an invisible latitude that marks the sun’s highest point in the sky.

In a paradise like Hawai’i, the daylight variance between the summer and winter solstice is a mere 2 ½ hours. This contrasts dramatically with places like Seattle (7 ½ hours) or Boston (6 hours), and near-zero differences at the equator.

The U.S. Federal Reserve may not have the unchanging rhythm of seasons, yet its publications certainly command attention. One particular report illustrates that numerous homeowners tend to excessively overpay their mortgages, with the degree of overpayment fluctuating based on borrower types and market interest rates.

For an intriguing podcast discussion today, follow here. This week, we feature sponsorship from Quontic, an organization dedicated to assisting creditworthy borrowers in securing home loans and giving them the affirmative response they’ve been longing for. Tune in for an insightful interview with James Hooper from Quontic, where he discusses innovative mortgage programs aimed at accommodating unique customer scenarios and minimizing paperwork. Additionally, we have your software, products, and services for lenders and brokers, all without referencing specific sources in the rundown.

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“Unpacking the Surge in Mortgage Application Volume – A Deep Dive into June 2024 Trends”

The week concluding on June 14 saw a minor uptick in the volume of mortgage applications, primarily driven by home purchases. The Mortgage Bankers Association revealed that their Market Composite Index, an indicator of loan application volumes, rose 0.9 percent on a seasonally adjusted basis despite slipping 0.1 percent compared to the previous week before adjustment. Refinancing index dipped by 0.4 percent from the past week but still stood 30 percent ahead than the same week the previous year. The proportion of refinancing in all mortgage activities remained steady at 35.2 percent. Applications for purchase loans saw a 2.0 percent surge, marking consecutive weeks of positive performance. However, the unadjusted Purchase Index saw a 0.1 percent fall compared to the previous week and was 12 percent less than the same week the previous year. In the wake of the latest inflation data and the FOMC meeting, mortgage rates fell. The 30-year conforming rate hit 6.94 percent, its lowest since the end of March, according to Mike Fratantoni, MBA’s SVP and Chief Economist. Despite a slight increase in purchase applications, he also noted that the volume of refinance applications declined a bit but was still about 30 percent higher than a year ago.

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“Breaking Down the Mortgage Market: A Comprehensive Recap of June 18, 2024 Developments”

Bonds underwent trading within two unique periods over the day. The day began with reaction to Retail Sales data, which triggered a reasonable rally following less than impressive results. Despite smaller than expected gains, a slight adjustment continued until around 11am. At this hour, volume profiles hinted at a shifting of positions before Wednesday’s vacation break. Several Federal Reserve speakers potentially boosted this adjustment, but inconsistent timing and trading volumes don’t unequivocally support this assumption. A late surge in trading concluded with the 20-year bond auction. This sparked momentary, alternating trading but left no significant impact. After these events, the bonds remained stable.

As for economic data and events, Retail Sales were recorded at 0.1 compared to a 0.2 forecast, with the last month’s figures being revised downward to -0.2 from 0.0. Industrial Production was stronger at 0.9 versus a 0.3 forecast and previous 0.0.

Regarding market movements, the day started off stable with a slight rally post-Retail Sales at 08:46 AM, where Mortgage-Backed Securities (MBS) were up nearly a quarter point and 10-year yields fell 4.3 basis points to 4.24. By 10:21 AM, there was a slight reversal from the morning gains with 10-year yields down 2.2 basis points at 4.26 and MBS up three ticks (0.09). As of 1:08 PM, the market had strengthened going into the auction and remained almost unchanged afterwards, with 10-year down 6.2 basis points at 4.22 and MBS up a quarter point.

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