Investor concerns about a 25 basis point reduction taking business from private insurers might be overblown, but a 50 bp cut could affect an additional 10%-15% of the low down payment market, KBW said.…Continue readingA large FHA premium cut could tilt market away from private insurers

Posted To: Mortgage Rate Watch

Mortgage rates were mixed to slightly higher today, depending on the lender. "Higher" is a relative term, in this case as the average loan seeker is unlikely to see much of a difference between yesterday's quotes and today's. Even then, the changes would almost certainly be in the form of upfront costs (or lender credits) rather than to the interest rate itself. For the sake of thoroughness and accuracy, keep in mind there are really two different kinds of rate when it comes to mortgages. The " note rate " is unsurprisingly the rate found at the top of your mortgage note. This is the rate that's applied to the principal balance of your loan in order to determine your principal and interest payment. The other rate would be the APR (annual percentage rate), which factors in all of the upfront...(read more)

…Continue readingMortgage Rates Mostly Recover After Starting The Day Higher

If new housing policy initiatives are not adopted by Congress, the Biden Administration may seek to push the GSEs into receivership, which would damage the conventional market, columnist and analyst Chris Whalen says.…Continue readingWill Biden take the nuclear option on the GSEs?

Today’s mortgage and refinance rates  Average mortgage rates fell more than expected last Friday. And they’re now back within striking distance of the most recent all-time low, set early this […]…Continue readingMortgage and refinance rates today, January 25, 2021

Posted To: MBS Commentary

Strong Move in Treasuries But MBS Underperform (Significantly) While much of the world of finance and institutional investment seemed to be preoccupied with day trading some truly epic ridiculousness via Game Stop, the bond market was doing a few interesting things of its own. Treasuries jumped out to an early lead with help from Europe, but several big trades helped yields move even lower after the 10yr broke an important floor at 1.075%. MBS had a completely different day with a significant amount of underperformance during and after the Fed's final buying operation of the day. At 4pm, UMBS 1.5 coupons were roughly unchanged on the day while 10yr Treasuries were nearly 5bps lower in yield! Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Market Movement...(read more)

…Continue readingMBS RECAP: Strong Move in Treasuries But MBS Underperform (Significantly)

The subsidiary of New Residential Investment produced nearly $400 million in non-QM volume in the first quarter of 2020 before putting a hold on the product offering in March.…Continue readingNewRez resumes non-QM lending after pandemic pause

Thanks to a new policy, FHA is now accepting DACA home loans. Learn about the pros and cons of FHA loans and whether you qualify for financing.…Continue readingDACA home loans — FHA will now approve home loans for ‘Dreamers.’ Here’s how to get approved

What's a bond market rally and why should mortgage rates care? There are all kinds of bonds. US Treasuries would be the quintessential example, but there are also bonds specific to the mortgage market. These are what groups of loans ultimately become in order to be traded on the open market (thus allowing lenders to make more loans with less risk and lower rates). As investors buy and sell bonds throughout the day, bond prices change. The higher the price, the lower the implied interest rate. Simply put, if bonds are rallying, rates should be falling shortly thereafter. The 10yr Treasury yield is typically an excellent barometer for mortgage rate movement. 10yr Treasuries and mortgage-backed bonds tend to correlate extremely well. As such, we might expect a more significant improvement in mortgage…Continue readingMortgage Rates Down Only Slightly Despite Bond Market Rally

Posted To: MND NewsWire

The interest rates on 30-year fixed rate mortgages originated in December reached an all-time low in ICE Mortgage Technology's (formerly Ellie Mae's) records, an average of 2.93 percent and a 4-basis point decline from the November rate. The company, in its monthly Origination Insight Report , said the note rate for all three loan types it tracks, FHA, Conventional, and VA, were all below 3.0 percent for the second straight month. FHA and Conventional loans dropped to 2.94 and 2.96 percent, respectively. Each averaged 2.99 percent the prior month. The VA rate fell from 2.72 to 2.66 percent. Refinances continued to dominate at 60 percent of originations , down 1 percentage point from November but up from 46 percent a year earlier. The outsized share was skewed toward conventional loans at 68...(read more)

…Continue readingLoans Still Taking 2 Months to Close as Refi Demand Stays Strong

Today’s mortgage and refinance rates  Average mortgage rates fell yesterday. And suddenly they’re back within their uberlow range. Indeed, one more drop like yesterday’s and they’ll be at their all-time […]…Continue readingMortgage and refinance rates today, Jan. 23, and rate forecast for next week