Navigating the 2024 Mortgage Landscape: Key Trends and Insights

I attended a Vikings game with a friend and decided to grab a drink. Initially, I was tempted to go for the large soda, but the steep price made me opt for a Minnesota alternative instead. Here in Minneapolis, people are buzzing about how quickly regulators are acting, anticipating changes by January. Attorney Brian Levy commented on how the CFPB and the Justice Department persist with modern-day redlining claims, despite lender discrimination not being the sole explanation for housing disparities. He suggested that the recent Townstone settlement indicates the CFPB’s aggressive fair lending approaches may not hold up in court. This could potentially mark a pivot point in fair lending enforcement within the mortgage industry. An industry veteran recalled the 1935 U.S. Supreme Court case, Berger v. United States, emphasizing that while prosecutors can pursue justice vigorously, they must avoid improper tactics that might result in wrongful convictions. This week’s discussion is sponsored by Calque, focusing on innovative loan solutions and strategies to help clients purchase new homes before selling their current ones. Tune into the latest podcast for insights from Cornerstone First Mortgage’s Eric Rotner and Calque’s Chandra Srivastava on addressing housing supply challenges.

Navigating Mortgage Market Trends: Key Insights for November 2024

As the election approached, the bond market saw a downturn aligned with increasing chances of a Trump victory and Republican control. Having experienced unforeseen results in 2016, markets were eager to account for anticipated outcomes as comprehensively as possible. The significant overnight bond sell-off indicates that this precaution was in place. Although 10-year yields rose by 19 basis points, which might seem substantial, this increase is relatively modest compared to potential reactions to election outcomes. One reason for this tempered reaction is the ongoing uncertainty over a Republican sweep, with control of the House still in a tight contest.

Navigating the Late-Season Shifts in the Mortgage Market

Bonds prepared for the upcoming election results with a notable journey today, starting with overnight declines that transitioned into even higher yields following the ISM Services PMI report. The ISM reading was stronger than anticipated, illustrating the bond market’s ability to respond to economic data. However, the market’s attention shifted to other factors in the afternoon. A successful Treasury auction might have influenced the dip in yields seen shortly afterward. A more significant rally happened during the 2 PM hour, though its trigger wasn’t clear. This movement might be attributed to positioning ahead of the election, with expectations for increased volatility in the coming days.

Economic Data / Events

– S&P Services PMI: 55.0 (forecast was 55.3, previous was 55.2)
– ISM Services: 56.0 (forecast was 53.8, previous was 54.9)
– Employment: 54.0 vs. 48.0
– Prices: 58.1 vs. 58.0

Market Movement Recap

– 10:16 AM: The market was weaker overnight and continued to decline post-data, with MBS decreasing by a quarter point and the 10yr yield rising by 6.9

Navigating the Unexpected: Mortgage Rates Take a Sharp Turn

Mortgage lenders typically update rates once daily, guided by fluctuations in the bond market. Although bond prices are in constant flux, lenders only adjust rates when market shifts exceed a certain threshold, leading to what’s known as a mid-day reprice. Earlier in the day, some lenders raised rates as bond prices dropped following an unexpectedly strong ISM Services report, a key economic indicator that often impacts bonds. Later in the day, market movements were less predictable, possibly due to ongoing pre-election volatility. However, this afternoon’s market trends were favorable, prompting many lenders to improve their rate offerings. As a result, the average lender’s rates have decreased slightly from the elevated levels seen earlier in the day, nearing those of the previous day. With election day underway, significant rate volatility is anticipated, but it may not influence the market until at least tomorrow morning.

Understanding the November 2024 Mortgage Market Dynamics: Key Insights from the Latest Report

Last week, it seemed that the bond market’s focus on economic data took a backseat, possibly until the election concluded. Friday’s jobs report appeared to be overshadowed by other factors that caused a downturn despite early gains.

Today, however, better-than-expected ISM data led to a clear sell-off in bonds. The headline PMI reached its highest point since late 2022, marking an upward trend, while the employment index reached its peak since late 2023. This supports the strong jobs number, even though ISM drew only half the trading volume compared to the jobs report.

Looking ahead, it’s unlikely that this or any other data will dominate market movements by tomorrow. The election is expected to have a greater influence, regardless of whether it is resolved. Nonetheless, the significance of economic data remains evident, especially when it significantly deviates from forecasts.

Understanding the Impact of Market Trends on Today’s Mortgage Rates

I heard there’s an election happening today, and on top of that, the Boeing strike has finally concluded. Tomorrow will bring a new day, and the timeless aspiration to own a home will persist. As for me, my agenda includes a flight to Minneapolis to attend the Fusion 24 Event, where mortgage technology is sure to be a hot topic. Coincidentally, today’s Advisor Angle Zoom call will feature insights from STRATMOR’s Garth Graham, Nicole Yung, and Brett McCracken, who will discuss the latest trends from the Lender Intelligence TIS module. They’ll delve into the proprietary Lender Loyalty Score® Analysis measures, which aims to assist lenders in selecting the most suitable technology providers.

Additionally, today’s podcast is available, sponsored by Calque. By partnering with Calque, lenders can offer improved loan solutions and expand their businesses with a partner that prioritizes their brand, enabling clients to buy before selling. There’s also an interesting interview with Diane Yu from TidalWave, focusing on how AI technology can cut costs and time in loan origination through automation.

In the realm of Lender and Broker Software, Services, and Products, Optimal Blue’s CompassEdge platform provides a daily, data-driven overview of mortgage risk management.

Navigating the Changing Tide of Mortgage Rates: Key Insights from November 4, 2024

Election Influence on Volatility Continues

Recently, the looming election has been a key factor causing market fluctuations, often driving yields upward. However, today broke from that trend. There’s some uncertainty about whether polling data or betting odds were the primary influencer, but consensus exists regarding the broad ‘ifs’ and ‘thens’. A decreased probability of a Trump win led to a shift in market conditions. This minor shift acted like a spark in a volatile environment rich with potential for change. By midday, bonds had retraced part of the overnight rally, yet yields remained unchanged from their pre-jobs report position last Friday. This makes for an interesting daily market narrative, though it lacks impact in the grand scheme.

Market Activity Summary

09:48 AM – Market opened significantly stronger due to altered election probabilities. Mortgage-backed securities (MBS) rose by 3/8ths, and the 10-year yield decreased by 11.3 basis points to 4.281.

11:21 AM – Markets started to decline after 10 AM. Despite losses, they remained stronger compared to the previous day, with MBS up by a quarter point and the 10-year yield lower by 9.3 basis points at 4.301.

01

Navigating the Latest Trends: Mortgage Rate Insights for November 4, 2024

Whether you love it or hate it, the fluctuations due to the election have been significantly influencing the bond market, thereby affecting mortgage rates. Generally, this volatility has driven rates up, but there was an exception during the weekend. Due to changes in betting market odds and pollster predictions, rates regained some of the ground they had lost in the previous week. While mortgage rates didn’t experience drastic changes, the average lender saw rates edge back toward 7% for a top-tier conventional 30-year fixed-rate mortgage, compared to approximately 7.125% late last week. Given the election-related volatility observed so far, it’s reasonable to anticipate continued fluctuations once a winner is determined. Currently, the sentiment appears to be that a Trump victory could push rates higher, while a Harris victory might trigger a favorable adjustment. This outlook is derived from how bonds have responded to various electoral chances and insights from the majority of analysts and traders. It’s important to note that these are projections for the near term, and the longer-term implications for rates remain uncertain. There are possibilities where rates could decrease under a Trump administration or increase under a Harris administration.

Unlocking the Future of Mortgages: Key Insights from Pipeline Press

It’s evident that significant profits are being earned in the mortgage market, with Freddie Mac and Fannie Mae still generating billions in revenue. A substantial part of their income stems from g-fee collections, as hundreds of billions pass through their systems each quarter. Currently, Fannie Mae holds a net worth of $90.5 billion, while Freddie Mac has $56 billion. Though these figures are robust, questions linger about whether they are sufficient to withstand a crisis similar to 2008.

Lenders face rising compliance and legal expenses, highlighted by the CFPB’s recent settlement of its fair lending case with Townstone Financial. The industry is also buzzing with talk of a possible price increase by Fair Isaac, from the current cost of $3.50 per credit score. Notably, FICO’s parent company has seen its stock price double over the past year to almost $2,000 per share.

Agency g-fees and credit report charges add to the overall cost of a loan, though compensation remain the largest expenditure, as loan officers often continue to receive pay for 30 days post-employment. This week’s podcast, sponsored by Calque, features insights from Rob Chrisman about the outcomes from the MBA Annual event. Calque, a notable

Navigating the Mortgage Market: Key Insights from Early November 2024

Until the previous Friday, 10-year Treasury yields consistently settled at around 4.27-4.28. As of this morning, they remain at that level. This indicates the absence of a significant rally. The current state only appears noteworthy when contrasting it with the abrupt sell-off that occurred last Friday.

To better understand today’s market movement, it’s helpful to recognize that a 10-12 basis point rally now is comparable to a 3-4 basis point rally in more stable periods. The driving factors behind this shift likely include changing election expectations and a reversal of positions that were hastily sold off prior to the weekend—likely fueled by a mix of both influences.