|  |  |  | | | | | Mortgage News Daily | | | | | | | | | | | | | | | | | | | Posted To: MBS Commentary Now there's a headline to keep on the shelf to be dusted off year after year.... In the absence of headline econ data, bonds performed well leading up to the first of two Fed QEII POMOs today. The AM rally came despite a strong start for stocks but after equities fell back in line with opening levels, the stock lever seemed to re-engage and an illiquid environment wasn't beneficial to the bond market. We blame one headline for the afternoon reprices that were reported. First, here's a look at how today stacks up versus Friday in both MBS and treasuries. The notion of headlines having an impact on afternoon trading is apparent in the spikier move down in the chart below taking place just afte 2pm. Stocks made an inverse, but similarly spikey move slightly before that in response to news that...(read more) | | | | | | | | | | | | | | | | | | | | | | | | | Posted To: Mortgage Rate Watch Mortgage rates made a move toward lower territory early this morning but just couldn't hold the improvements through the end of the day. The gains didn't even make it past lunch! After topping out around 11am, mortgage-backed securities prices (price up = rates down) started to lose steam with steep losses noted just after 2pm. Although the big picture significance of these unfriendly movements is muddled by a low volume holiday trading environment, lenders were still forced to reprice for the worse. With reprices behind us and our mortgage rate model updated, loan pricing remains in-line with quotes offered by lenders on Friday afternoon, which puts the best execution 30 year fixed mortgage rate at 4.875. Important Mortgage Rate Disclaimer: Loan originators will only be able to offer these...(read more) | | | | | | | | | | | | | | | | | | | | | | | | | Posted To: MND NewsWire The National Association of Realtors® recently called on FICO, developer of the credit scoring model of the same name, to revise some of its computations. At issue is the alleged negative impact on consumers when banks and credit card companies unilaterally reduce or cancel credit lines, even when consumers are in good standing on those accounts. An NAR spokesman said that FICO's software is "unable to differentiate between innocent victims and people whose behavior genuinely merits reductions," and called the FICO model "archaic." Craig Watts, FICO's Public Affairs Director, told us that FICO's scoring models are not static. "They are constantly evolving, but each change reflects data over time, and users do not adopt new models immediately because of the cost and labor involved." Its...(read more) | | | | | | | | | | | | | | | | | | | | | | | | | Posted To: MBS Commentary Argh. I hate when I write a strong post and the market moves immediately after I publish it. The New York Fed's trading desk was in the market for Treasuries this morning, buying $7.79bn in rate sheet influential benchmarks maturing between 02/15/2018 and 11/15/2020. As a result, with the calendar lite and momentum leaning in favor of the bond bulls, longer dated TSYs rallied and the curve flattened out the gate all the way into the Fed's 10:15 POMO. However once the Fed's open market operations were done for the day...we started seeing rates make a move higher along with with a modest increase in trading volume and a positive uptick in trading flows. This is indicative of new money entering the market via SHORT SELLING. OTR 10s ventured as low as 3.25% before running right into resistance...(read more) | | | | | | | | | | | | | | | | | | | | | | | | | Posted To: MBS Commentary Good Morning. I hope your weekend allowed for much needed R&R. If you're anything like me...it didn't. I've made a list. I've checked it twice. And yep. Confirmation! I have not finished my holiday shopping yet! Nor am I ready to welcome the holiday spirit into my life. That all changes in the day's ahead though. I will finish my shopping today or tomorrow. After that will be the gift wrapping/card writing party (with a bottle of Gnarley Head Cab)...and then, once all the items on my honey do list are crossed off, I will allocate all my time to what matters most...family and good friends. These sidetracked sentiments will be illustrated by the market's behavior over the next 10-15 days. Trading volumes will decline. Liquidity will be lacking. And attention rediverted. That means, more than...(read more) | | | | | | | | | | | | | | | | | | | | | | | | | Posted To: Pipeline Press Tonight, or more specifically early tomorrow morning, the first day of northern winter, a full moon passes almost dead-center through Earth's shadow. For 72 minutes across North America, we will have a lunar eclipse to greet the winter , beginning tomorrow morning at 1:33 am EST (Monday at 10:33 pm PST). If you're planning to dash out for only one quick look - it is December, after all - choose this moment: 03:17 am EST (17 minutes past midnight PST). This is when the moon will be in deepest shadow, displaying the most fantastic shades of coppery red. And for more good news, today is the "shortest" day of the year, with the sunlight only lengthening after this. Anyone looking, or knowing of someone looking, for originator jobs in Colorado should check into Colorado State Bank &...(read more) | | | | | | | | | | | | | | | | | | | | | | | | | Posted To: MBS Commentary Treasuries are gaining lost ground for the third consecutive trading day. This represents the longest stretch of improvements in December thus far. The benchmark 10-year yield is down another 6.8bps at 3.27%. The Fannie Mae 4.5 MBS coupon is +11/32 at 102-11. From AQ's MBS close on Friday.... December floaters shouldn't be comfortable yet. You should actually be pretty antsy. That's how the market will behave next week at least. The week ahead will be defined by Christmas parties, hangover headaches, out of office replies and a straight up lack of trading liquidity (can it dry up anymore???) That means the potential for price chopatility is high. Now. That isn't necessarily a bad thing. Volatility was very friendly to our cause on Thursday and Friday. But December floaters should still be pretty...(read more) | | | | | | | | | |  | |  | |  |
