Mortgage News Daily

Mortgage News Daily

Mortgage Statistics Suggest a Friendly, Falling-Rate Environment; Single-Fam Construction Hit Hard

May mortgage performance data indicates that the mortgage finance industry might consider shifting priorities for a while. Black Knight, in the current edition of its Mortgage Monitor, points to the heavy prepayment risk for especially for adjustable rate mortgage (ARM) borrowers shown in the report and the growing pool of financeable mortgages. It is time, Black Knight says, for lenders …

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Rates Face Big Volatility Risk Next Week; Weak Econ Data Helps Market Hunker Down Before G20

Mortgage rates enjoyed a pleasantly flat week despite some volatility in the underlying bond market. The day-to-day changes in Treasuries and Mortgage-Backed-Securities (MBS) were noticeable, but they all took place inside the range of values seen last Wednesday on Fed day. In other words, the bond market (which dictates rates) digested the Fed’s message and is now waiting for the …

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Pending Sales Promise Solid Summer; Rates Edge Lower; Here’s Why You Might Rent Instead of Buy

Mortgage rates rose to the week’s highest levels yesterday, but they moved back down today . Although there have been slightly better days over the past 2 weeks, today’s improvement is enough to keep rates in the best territory since November 2016. For the average lender, this means top tier scenarios continue to see quotes in the high 3% range. …

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Rates Pop Up to This Week’s Highs; Friendly Fed Helping Refi Demand; Treasury Weakness Means Mortgages Catch Up

Mortgage rates hadn’t moved much since last Friday–a good thing considering those levels were in line with the lowest levels in a long time. The ground-holding gave way today, however, as the underlying bond market weakened for the first time this week. In turn, mortgage rates quickly find themselves at this week’s highs . But whether or not that means …

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Plummeting Sales in West Skew National Totals; Prices Moderating; Recalcitrant Rates; Downtrend or Consolidation?

It was another disappointing month for new home sales , but due entirely to a sharp decline in those sales in the West. The U.S. Census Bureau and the Department of Housing and Urban Development said sales of newly constructed homes in May were at a seasonally adjusted annual rate of 626,000 units. This is 7.8 percent below the revised …

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Rates Catch a Break; Mortgage Prepays Ramping Up Quickly; Investors Pricing Out First-Time Buyers?

Mortgage rates were generally flat today, depending on the lender. Some were noticeably better while others were a hair worse. In both cases, rates are very close to the lowest levels since late 2016. Changes from Friday would most likely be measured in terms of upfront costs as opposed to differences in the quoted “note rate” itself (the rate most …

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Why Lenders Are Cutting Back on FHA; Volatility Ahead For Rates; Home Sales and Prices Bounce Back

After the housing crisis and faced with a flood of insurance claims, FHA and the Department of Justice responded with enforcement efforts against lenders that had made underwriting mistakes , levying large fines, requiring more indemnification, and bringing claims of fraud under the False Claims Act. Urban Institute (UI) analysts Jim Parrott and Laurie Goodman write that this generated confusion …

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Rates Hit New Long-Term Lows, Then Bounce; Robust Summer Sales Outlook; Google’s Housing Fix; New Fixer Upper Loan

Mortgage rates plunged today as the bond market extended its positive reaction to yesterday’s Fed announcement. The Fed doesn’t set mortgage rates, but the market’s expectation of Fed rate-setting policy has a major impact. In other words, because the Fed generally confirmed the market’s suspicion that rate cuts could be warranted in 2019, traders were willing to push rates even …

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