MBS Underperforming as Treasuries Stall. More Reprices Possible

Hot news from AZ Home Help:

Posted To: MBS Commentary

Some reprices for the worse have already been seen and more may follow if current trends prevail or even if they simply fail to reverse course. What are those trends? Several are aligning to raise the risk for continued reprices for the worse: MBS performing worse than benchmarks (aka "widening"), lenders having relatively aggressive rate sheets out (makes them more sensitive to market movements), and of course the much discussed bearish technical resistance still faced by the bond market in general. The technical resistance is most pronounced as 10yr notes attempt to break below 3.60 (and keep failing). While yields have danced around that level at times this morning, we're far from seeing a definitive and confirmed break, not to mention we've seen our fair share of weakness as well. But where...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: www.mortgagenewsdaily.com

- For more real estate news visit our website at http://www.AzHomeHelp.com

Mortgage Rates: Winning Streak Ends Gently

Hot news from AZ Home Help:

Posted To: Mortgage Rate Watch

Yesterday we shared news that mortgage rates were on a three day winning streak. This allowed us to update our best execution 30-year fixed mortgage rate from a range between 5.125 and 5.25% to simply 5.125%. Unfortunately that three day winning streak came to an end today, but it didn't happen in a particularly painful fashion as rates are basically unchanged from yesterday. Today was not without its excitement though. It was one of the more volatile days we've had recently in the secondary mortgage market, but at the end of the day, lender rate sheets were basically unchanged. CURRENT MARKET : The "Best Execution" conventional 30 year fixed mortgage rate is no longer split between 5.125% and 5.25%....it has fallen firmly to 5.125%. 5.00% quotes are available but borrowers should expect to...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: www.mortgagenewsdaily.com

- For more real estate news visit our website at http://www.AzHomeHelp.com

Homebuilders Still Hampered by Appraisal Inaccuracies and Lack of Financing Options

Hot news from AZ Home Help:

Posted To: MND NewsWire

The nation's homebuilders are still seeing a lot of dark tunnel ahead judging by their responses in the most recent survey of attitudes about the home sales market conducted by the National Association of Homebuilders (NAHB). According to results of the survey the NAHB/Wells Fargo Housing Market Index (HMI) released Tuesday remained stuck at 16 for the fourth consecutive month. The survey, which has been conducted for over 20 years, measures the confidence of homebuilders using three criteria; builder expectations of current single-family home sales and their expectations for sales over the next six months, each measured as "good," "fair" or "poor;" and their perceptions of prospective buyer traffic as "high to very high," "average" or "low to very low." Scores from each component are then...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: www.mortgagenewsdaily.com

- For more real estate news visit our website at http://www.AzHomeHelp.com

Mortgage Rates on Three Day Winning Streak

Hot news from AZ Home Help:

Posted To: Mortgage Rate Watch

Mortgage rates are on a three day winning streak! Yes you read that correctly. After snapping a 5-day losing streak last Wednesday, loan pricing has improved in 3 straight trading sessions. Upon careful inspection, we are ready to update current market "best execution".... UPDATED CURRENT MARKET* : The "Best Execution" conventional 30 year fixed mortgage rate is no longer split between 5.125% and 5.25%....it has fallen firmly to 5.125%. 5.00% quotes are available but borrowers should expect to be charged origination fees if they choose to permanently buydown their note rate. The upfront cost of permanently buying down your rate from 5.125% to 5.00% may not be worth it to every applicant. We would generally advise the permanent floatdown if you plan to hold your new mortgage for longer than...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: www.mortgagenewsdaily.com

- For more real estate news visit our website at http://www.AzHomeHelp.com

Mortgage Rates: Still on a Ledge. Still Defensive

Hot news from AZ Home Help:

Posted To: Mortgage Rate Watch

We watched defensively last week as mortgage rates teetered on a ledge. We were searching for an indication that "snowball selling" had been avoided before offering a new directional guidance. No sign was shared by the secondary market but we did manage to back a bit further away from the mortgage rate ledge before heading into the weekend. Snowball selling in the secondary mortgage market forces lenders to reprice their rate sheets for the worse. At first the impact is only higher closing costs, but as the snowballing gains momentum and reprices for the worse get bigger and bigger...the "Best Execution" 30-year fixed mortgage rate spikes higher. Mortgage rates face a condensed calendar of influential events in the week ahead. Planned topics of debate include: inflation, the President's 2012...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: www.mortgagenewsdaily.com

- For more real estate news visit our website at http://www.AzHomeHelp.com

FHA Announces Fee Hike. Targeted Relaxation of Regs Ahead?

Hot news from AZ Home Help:

Posted To: MND NewsWire

That was quick.... FHA TAKES STEPS TO BOLSTER CAPITAL RESERVES New premium structure for 30- and 15-year loans will help private capital return WASHINGTON – As part of ongoing efforts to strengthen the Federal Housing Administration’s (FHA) capital reserves, FHA Commissioner David H. Stevens today announced a new premium structure for FHA-insured mortgage loans increasing its annual mortgage insurance premium (MIP) by a quarter of a percentage point (.25) on all 30- and 15-year loans. The upfront MIP will remain unchanged at 1.0 percent. This premium change was detailed in President Obama’s fiscal year 2012 budget, also released today, and will impact new loans insured by FHA on or after April 18, 2011. “After careful consideration and analysis, we determined it was...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: www.mortgagenewsdaily.com

- For more real estate news visit our website at http://www.AzHomeHelp.com

Housing Finance Reform: Reduced Loan Limits, Larger Down Payments, Higher FHA MIP Fees

Hot news from AZ Home Help:

Posted To: MND NewsWire

The long-awaited report on the future of housing finance has been released by the Obama Administration. Below is the presser.... I highlighted some talking points. The first thing to take away from this paper is the Administration's intention to wind down Fannie and Freddie on a responsible timeline. That tells you this reform/winding down process will take many years and much debate. 5 to 7 years according to Treasury Secretary Tim Geithner. There's nothing wrong with that though. Slow and steady works as long as lenders have funding liquidity in the process. The main goal is to get housing finance reform done right....the first time, this market can only take so much more stress, rewriting regs repeatedly would be detrimental to the overall housing recovery process. Next on the list of observations...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: www.mortgagenewsdaily.com

- For more real estate news visit our website at http://www.AzHomeHelp.com