Mortgage News
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Mortgage Rates Mostly Unchanged After Treasury Auction
Posted To: Mortgage Rate Watch When economic data is thin the stock market tends to have a larger impact on the direction of mortgage rates. The session began with stocks moving lower yesterday. With no data on the economic calendar to reverse the market's direction, the bond market was able to rally all day (higher bond prices = lower bond yields). This allowed most lenders to reprice for the better. Like yesterday, the economic economic was quiet today. Two events influenced the marketplace... The Department of Treasury auctioned $21 billion 10-year notes today. Before the auction, the bond market made room for new debt supply by letting Treasury prices fall (cheapen). This pushed benchmark yields higher and led MBS prices lower. The issue must have gotten cheap enough because auction demand was strong. This led to a modest...( read more) 
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USDA Rural Development System Upgrade Complete. Now Processing Conditional Commitments
Posted To: MND NewsWire In March we learned that USDA Rural Housing funds were expected to run dry by the end of April . A month later, even though the legislation intended to provide the funding had not passed, USDA began issuing commitments for new loans, but there was a caveat: Loan approvals would be "subject to the availability of funds and Congressional authority to charge a 3.5 percent guarantee fee for purchase loans and a 2.25 percent guarantee fee for refinance loans." Finally, on July 29 Congress passed HR 4899 to reestablish the program as one that would no longer be subject to the annual whims of Federal funding but self-sustaining through a 3.5 percent guarantee fee paid by the borrower. Four weeks passed after the Congress did their job and appropriated unlimited funding for the USDA Rural Housing Program...( read more) 
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Jeff's Blog -
Jeff's Blog
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Written by Jeff
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Thursday, 29 October 2009 19:10 |
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I think we can probably all agree that interest rates are probably headed higher next year. The Federal Reserve's MBS purchase program, while extended through March 31st, will be wound down. The massive Federal spending spree we've seen this year can only add to inflationary presuure.
Thinking about how the almost dead certainty of rising rates will impact buyers, we've put together an online presentation explaining our concerns and how increasing rates will impact the cost of purchasing a new home. Even beyond rates, buyers need to be concerned about the continued tightening of underwriting guidlines.
Here's how I'm looking at next year: Click Here For Mortgage Interest Rate Forecast for 2010 |
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Jeff's Blog -
Jeff's Blog
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Written by Jeff
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Tuesday, 27 October 2009 20:35 |
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Existing home sales jumped 9.4% in September - our full report is here: September Existing Home Sales.
The increase was driven by distressed sales and first time home buyers taking advantage of the federal tax credit. It was estimated that 33% of the sales were distressed sales (short sales, foreclosures, REO sales) and 45% were first time buyers. We'll probably see a retreat in sales once the tax credit expires on December 1st. For the time being though, it looks as if the housing market has somewhat stablized with existing sales increasing in 5 of the last 6 months. Remember though, it's new home sales and housing starts that are the real indicators of the strength of any economic recovery.
Here is the take from my favorite economics blogger Calculated Risk: Existing Home Sales: More Activity, Little Achievement |
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Jeff's Blog -
Jeff's Blog
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Written by Jeff
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Wednesday, 21 October 2009 21:37 |
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Housing starts rose 0.5% in September to an annualized pace of 590,000 following a downwardly revised rate of 587,000 in August. Our full report can be found here: September Housing Starts Report
From April lows (in the 479,000 annual pace range), starts rebounded in June to a 590,000 rate and have basically moved sideways over the next four (4) months.
You can also read analysis from the Calculated Risk blog: Housing Starts in September: Moving Sideways |
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September 7, 2010 (8)
