Category Archives for "Mortgage Industry News"

“Demystifying the Trends: A Deep Dive into Daily Mortgage Rate Movements and Market Predictions”

Kicking off the week, mortgage rates experienced a slight increase, moving past the 7% mark. However, these losses were partially offset later. This shift coincides with this morning’s weaker-than-predicted Retail Sales figures. Mortgage rates tend to follow bond market trading. Various factors influence bonds, with significant economic indicators always being key elements. Such indicators reflect the economy’s health, which is generally associated with rates – stronger usually implies higher. Although not as critical as the Consumer Price Index (CPI) or The Employment Situation (jobs report), Retail Sales is considerably vital. After achieving surprisingly high growth rates in March and April, a correction emerged in May’s report, showing a growth rate of 0.0%. The most recent report demonstrated a minimal positive growth of 0.1, significantly lower than the 0.6 level encountered two months earlier and under the anticipated median forecast of 0.2. Moreover, May’s growth rate was revised from 0.0 to -0.2, which suggests a less optimistic outlook for the US consumer compared to recent months. A sluggish economy struggles to maintain high-interest rates due to numerous reasons, including the potential for slower price growth. Consequently, bond traders opted to procure more bonds, driving bond prices up and yields, or “rates”, down. Trading will pause due to the Juneteenth holiday, resuming on Thursday, with the substantial economic data still due later next week.

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“Exploring Mortgage Market Dynamics: Key Insights from Pipeline Press”

Over half a century has passed since the iconic ‘Summer of ’69’ was released by Bryan Adams, marking 55 years before the latest Consumer Finance Protection Bureau (CFPB) move against a lender. Taking a look at Hawaii over the years, the population has seen a surge but has stabilized recently around the 1.4 million mark, comparable to San Diego’s residents. These people occupy approximately 572,000 homes, with owner occupancy being the norm about 62% of the time.

In a more nationwide observation, it has become less customary to get married prior to purchasing property. Recently published data from the U.S. Census Bureau indicates that in 2022, married households constituted 47% of all households, a noticeable decline from the 71% seen in 1970. In addition, the America’s Families and Living Arrangements study revealed that roughly 80 million households in 2019 were classified as family households. Out of these, 58 million were married couples, around 6 million consisted of male-led single-parent households, and nearly 15 million were managed by single mothers.

A notable shift has been observed in the configuration of non-family households. Back in 1970, they represented about 19% of all households, but this figure rose to approximately 36% by 2022. A consistent trend across both years has been that women living alone account for the majority of nonfamily households, making up 12% in 1970 and growing to 16% by 2022. Interestingly, the concept of the stereotypical bachelor pad has also gained more popularity, with the proportion of men living alone doubling from roughly 6% in 1970 to 13% in 2022.

In our recent podcast, available here, we are proud to feature Quontic, an organization committed to assisting eligible borrowers in securing home loans and delivering the much-anticipated affirmative response. Included in this episode is a discussion with lawyer Brian Levy regarding the CFPB’s investigation into hidden charges contributing to escalating mortgage closing costs.

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“Understanding the Latest Trends in Mortgage Bonds: A Morning Analysis – June 2024”

When monitoring financial markets, you’re almost guaranteed to come across the term “data-dependent”, as highlighted by this morning’s activity. Even a small adjustment in Retail Sales, a shortfall of 0.1 instead of 0.2, can trigger a notable response in the bond market, no matter how subtle the enhancement may be.

Moreover, a significant decline in last month’s reading (originally 0.0, revised to -0.2 now) contributed palpably to the situation. The ultimate result? The week’s lowest yields yet, however, these have still been unable to reach the lows recorded last Friday.

Considering the scheduled 20-year bond auction later today and tomorrow’s market-close, there’s expectation that traders would try to capitalize on these gains unless something unexpected surfaces in the news. Please remember to avoid crediting for this summary.

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“An In-depth Analysis of Market Movements in Mid-June: A Mortgage Daily Recap”

The new week kicked off with a slight increase in 10yr Treasuries to 4.28%, following last week’s impressive rally from about 4.45 to 4.22%. Meanwhile, Mortgage-Backed Securities (MBS) demonstrated resilience, not losing ground as swiftly over the day – an expected outcome considering their underperformance during the Treasury’s significant rally last week. It was a relatively uninspiring day regarding data, events, and trading volume. No clear impact emanated from NY Fed Manufacturing data, and Fed Harker’s updates did not catch traders off guard. The setbacks could be seen as a nominal correction that holds little relevance for the direction the market will take tomorrow. Mostly, the fate of tomorrow’s market direction is held in the hands of Retail Sales. However, it would require a substantial exceedance or shortfall to trigger a reasonable and significant market response.

Economic Data / Events
– NY Fed Manufacturing: -6 versus previous -15.6

Summary of Market Movements
– 10:22 AM: Following weaker overnight statistics, steady selling emerged early in the day. 10yr increased by 6.6 basis points to 4.29; MBS dropped nearly a quarter point in 5.5 coupons.
– 01:44 PM: A modest recovery from weakest levels, with MBS losing 6 ticks (.19) and 10yr increasing by 4.8bps to 4.272.
– 04:14 PM: Consistent performance throughout the afternoon from both MBS and Treasuries.

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“Understanding the Fluctuations: An Insight into Mortgage Rate Trends of 2024”

As the new week begins, mortgage rates have experienced a slight increase. Prior to this development, top-tier 30-year fixed rates averaged slightly below 7%. The latest change has pushed these rates to just above 7%. As usual, it’s important to remember that the mortgage rate index should primarily be leveraged to monitor day-to-day rate fluctuations, not the absolute levels. The latter tend to vary widely based on factors like credit score, equity, occupancy, discount points, and lender margins.

The bond market, which influences the momentum of mortgage rates, didn’t showcase any noteworthy shifts today. Monday was largely calm, devoid of any prominent economic data or substantive bond market volumes. However, the following day might be more stimulating due to the release of Retail Sales data at 8:30 am ET. Though this is not as substantial as the jobs report or the Consumer Price Index, retail sales figures that significantly deviate from expectations can trigger substantial rate responses.

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“Analyzing the Dynamic Effort of Bonds to Achieve Market Stability: An In-Depth Outlook”

The previous week highlighted the underperformance of Mortgage Backed Securities (MBS). This was attributed to the typical behavior of MBS, where they often underperform as US Treasury securities embark on a bullish run, such as the one observed last week. Applying this analogy further, one might expect MBS to display a better performance once the intensity of Treasury securities cools down or adjusts, a scenario that effectively seems to be unfolding this morning. The yield on 10yr Treasury notes has risen by 6bps to 4.286, implying a decrease in 10yr note prices by half a point. The 5yr notes have seen a decrease in price by a quarter point. In contrast, the 6.0 MBS have dropped only by an eighth of a point, and the 5.5 coupons fell by only 7 ticks (0.22). The reasons for the weakness are not glaringly clear. Trading volumes are relatively low, which often can fuel unpredictable fluctuations, and a sell-off seems to be a less unexpected outcome after a strong week that seemed to lose momentum by Friday.

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“Unpacking the Influence of Daily Market Changes on Mortgage-backed Securities: A Recap”

The topic of MBS lags behind Treasury bonds has once again come to the fore. The particular focus is not necessarily on the scale of this underperformance, but the fact that MBS frequently showed negative results while Treasuries have been positively performing. Despite the repetitiveness of the MBS trailing discussion, we aim to share new insights in our latest video. It’s worth mentioning that the day was relatively static for bonds, featuring slight victories for the longer end of the yield curve (a primary cause of MBS underperformance) and a calm and steady afternoon.

Economic Data / Events

Import Prices

Fell by 0.6, contradicting the forecast of 0.0, and previous value of 0.6

Export Prices

Decreased by 0.4, defying the forecast of 0.1, and previous amount of 0.9

Consumer Sentiment

Recorded at 65.6, well below the forecast of 72.0 and previous figure of 69.1

Inflation expectations for 1 year remain the same, and 5-year inflation expectation slightly increased by 0.1%.

Market Movement Recap

At 08:58 AM, market seemed stronger but lost some momentum half an hour later. MBS improved by one tick (.03), and 10-yr yield decreased by 2.7 bps to 4.218.

As of 11:54 AM, the market was fluctuating within a narrow range. MBS lagged behind with 5.5s decreasing 1 tick (.03). Yields on 10-yr were 3 bps lower at 4.215.

By 03:14 PM, the market saw practically no change from the last update with minimal volatility throughout the period.

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“Exploring the Landscape of Mortgage Rates: Insights from June 14, 2024 Review”

The conventional 30-year fixed rate saw a small uptick for top-tier scenarios, with most lenders’ quotes resting just below 7%. The rates fluctuate between the mid-6% and mid-7%, depending on particular scenarios. Unlike the previous couple of days, there were no significant events impacting the bonds associated with mortgage rate movements. A few economic reports were released, but their impact on the market was minimal, resulting in a relatively uneventful day, in stark contrast to the majority of days since last Friday. The market is now poised in anticipation of the next significant economic report: Retail Sales, due on Tuesday. Other reports are expected in the coming week, against the backdrop of a holiday on Wednesday for Juneteenth. The most substantial market shifts are likely still tied to the recently released economic reports, the like of which will not reappear for nearly a month. A mild, somewhat erratic movement trend is expected until then.

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“Understanding the Dynamics: The Mortgage Rate Trend for June 14, 2024”

After analyzing last week’s economic activities and data, it’s clear that the bond market is grappling with numerous concerns. Foremost among these is the possibility of an uptick in inflation, which seems to be making the long-awaited turn. Employment figures also prompt speculation about a potential weakness in the labor market. Further, predictions regarding rate cuts by the Federal Reserve become complex considering the unexpected inflation scenario in the first quarter, leaving traders to question the central bank’s stance.

As it stands, no recent developments or information seem to be clarifying this picture. Even though we may have expected Import Prices to exacerbate deflationary trends, bonds disappointingly experienced losses post-data release—though not necessarily as a direct result. The inability of Consumer Sentiment data to stimulate the market further underscores the belief that bonds have taken a backseat for this week and ongoing trades appear to be driven by factors unrelated to today’s happenings.

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“Understanding the Intricacies of Mortgage News: A Thorough Overview”

Recently in Florida, we hilariously marked the occasion with a couple of grown-up drinks: Metamucil and Ensure. It’s a testament to each state’s unique idiosyncrasies, which often serve as humorous fodder for those residing in other regions – classic human behavior. Meanwhile, the culinary industry in Chicago is experiencing a significant boom, despite despair among White Sox fans over the team’s regrettable standing as the worst in the majors. On a broader scale, the fastest expanding cities still predominantly reside in the sunny southern states. Intriguingly, recent population statistics indicate some of the top growth areas are now found on metropolitan fringes or in rural regions. Taking Rockford as an example – positioned to the west of Chicago – it has become a prominent player in the nation’s real estate market. This flourishing market typically ushers in a surge in lending, which bodes well for originators. Who wouldn’t benefit from drawing insights from top producers who are passionate about their work? Today, The Mortgage Collaborative’s Rundown will spotlight Austin Lampson, who recently achieved recognition as one of the top 5 female loan originators in the country in 2023, maintaining her place in the top 1% since 2014! This week’s podcast can be accessed here and features our sponsor, Richey May – a leading provider of specialized advice, audit, taxes, cybersecurity, tech, and additional services to the mortgage industry. It includes an interview with Loan Atlas’ Craig Strent on how to develop your origination business away from Realtor-based referrals, which can be incredibly informative. For Lenders and Brokers seeking stellar software, products, and services, Dragon9 Partners offers transformative IT solutions geared specifically to mortgage origination, sales, and servicing. We cater to all sizes of Lenders/Brokers, with our knowledgeable team well-versed in the intricacies of the mortgage industry and committed to delivering advanced, tailored technology solutions. Whether optimizing your origination process, bolstering sales effectiveness, or upgrading servicing operations is your objective, our extensive IT consulting services are designed to propel your success. Let Dragon9 be your dependable guide through the maze of the mortgage industry and utilize progressive technology to enhance customer satisfaction and streamline your operations. Contact us today to discover how we can empower you to achieve your ambitions. Act fast – the first three respondents will secure a complimentary cybersecurity readiness assessment.

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