Excessive Housing Inventory at 11 months supply

There is an excess of housing inventory across the US as there are more homes for sale than are actually selling.  The current inventory sits at about 3.86 million homes which equates to about an 11 month supply.  http://bit.ly/fkbRda

Bond Market Prepares for Debt Supply. Bargain Hunters Await NFP Revisions

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Posted To: MBS Commentary

Blah blah blah rates higher blah blah blah outside the range blah blah blah Treasury supply blah blah blah tactical considerations blah blah blah holiday distractions blah blah blah low volume blah blah blah exaggerated price action blah blah blah lack of strategic bargain buyers blah blah blah waiting for January 7, 2011 blah blah blah. Plain and Simple: benchmark 10s have crept outside the confines of the recent trading range. This is playing out ahead of Treasury auctions next week and is seen as a tactical ploy to profit from the day trading sentiment of a holiday distracted marketplace where low volumes tend to distort reality and create chopatility. We have noticed a clear lack of demand from strategic bargain buyers who appear to be waiting for confirmation that the November Employment...(read more)

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Source: www.mortgagenewsdaily.com

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FHFA Reports on Enterprise Foreclosure Prevention Activity

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Posted To: MND NewsWire

The Federal Housing Financing agency reported there have now been over a quarter million permanent mortgage loan modifications for Freddie Mac and Fannie Mae mortgages arranged under the Home Affordable Modification Program. While it was substantially below the 88,600 permanent modifications achieved during Quarter II, 35,400 trial modifications were converted to permanent status in the third quarter, bringing the total to 260,000 over the 18 months since the program began. FHFA's Third Quarter 2010 Foreclosure Prevention and Refinance Report issued on Monday includes information on all of the foreclosure prevention efforts undertaken by the two government sponsored enterprises (Enterprises) Freddie Mac and Fannie Mae, including HAMP, the Home Affordable Refinance Program (HARP,) and other...(read more)

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Source: www.mortgagenewsdaily.com

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Shadow Inventory - What is it and why is it important?

Shadow Inventory is the number of homes that are bank owned or are on the verge of being bank owned properties but aren't currently listed as homes for sale.

This number does not include short sales but the total estimated number of shadow inventory is staggering -- approximately seven million...http://bit.ly/gyb0Zv

MBS Touch Lows of Day. Benchmarks Test Support. Watching for Breakout

Hot news from AZ Home Help:

Posted To: MBS Commentary

Let us have no illusions about the market on this holiday-shortened week. As expected, trading conditions are becoming progressively thinner and volume progressively lower. The Fed is done buying for the week, and next week brings the task of taking down another round of 2, 5, and 7 year auctions. Given that low level of participation, it does not strain credulity to think that rates are under a bit of pressure to to back up into an ideal tactical position from which to strike at next week's auctions. Or maybe instead of saying "under a bit of pressure to back up" we should say "not getting much support from sidelined buyers". Real$ bid wanted. It's really that simple. There's not much driving the markets, and whatever movements we do see are not representative enough of broader biases for...(read more)

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Source: www.mortgagenewsdaily.com

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Moderate Morning MBS Losses Turn Into Healthy Afternoon Gains

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Posted To: MBS Commentary

Another data-less day has passed and we've seen another day of chopatility led by technical inflection levels surrounding the Fed's open market operations. Yesterday it was "morning session good, PM session bad," and today it was "morning session bad, PM session good". MBS and Treasuries alike languished until 2pm. But the downtick was fairly measured and well contained by technical support, although things did get choppier as the afternoon pre-POMO (2nd operation of the day) trade coincided with lighter and lighter volumes. Here is a recap of 5pm marks... For mortgages, the end result was a Fannie 4.0 that gained half a point trough to peak and closed at the highs, better than mid-range versus yesterday's prices. Those FN 4.0s sure do love a bull flattener into decling vol! Treasuries did...(read more)

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Bond Market Makes Directional Move After Fed POMO. Reprices Possible

Hot news from AZ Home Help:

Posted To: MBS Commentary

As has been the case since liquidity began to dry up in earnest two weeks ago...the bond market has made a directional move after the Fed completed their latest QEII open market operation . Profit takers and short sellers are making their presence known following the Fed's latest POMO in the long end of the yield curve. Flows have gone negative in a hurry and the 2s.10s curve has steepened aggressively. Again, trading volumes are very low and this behavior is exaggerated by a lack of liquidity, unfortunately that offers little concession to lenders. Rate sheet influential MBS prices are falling...and fast. The benchmark 10 year TSY note yield is now -9/32 at 93-24 yielding 3.373%. This is almost 8bps above the morning yield lows, most of which hit screens in one sharp spike over the past few...(read more)

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Source: www.mortgagenewsdaily.com

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