Daily Newsletter: Mortgage Rates Break Cyprus Slide; Servicers Loan Performance; Freddie’s New Streamlined Modification

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30 Year Fixed

3.60%   -0.04

15 Year Fixed

2.93%   -0.03

10YR Treasury

1.85%   -0.0657

FNMA 30YR 3.5

105.59   +0.25

FNMA 15YR 2.5

105.19   +0.13

Wednesday March 27, 2013
Mortgage Rate Watch – 4:13PM
Mortgage rates moved lower today at their fastest pace in more than a week, bringing them in line with their lowest levels since last week’s Cyprus-related market movement. Lender pricing …
MND NewsWire – 5:34PM
The Office of Comptroller of the Currency (OCC) is reporting that the quality of mortgage loans serviced by selected national and federal savings banks continued to improve in the fourth …
MND NewsWire – 12:06PM
Freddie Mac has announced a new Streamlined Modification Program that it says will “open a new gateway to mortgage relief for many of American’s stuggling borrowers.” Starting July …
MND NewsWire – 12:04PM
The Federal Housing Finance Agency ( FHFA ) says that Freddie Mac and Fannie Mae (the GSEs) assisted 130,000 homeowners with one or more of their foreclosure prevention programs in …
MBS Live Chat – 2:00PM

“REPRICE : 2:00 PM – Chase Better…”

MBS Live Chat – 1:22PM

“RTRS – FED’S KOCHERLAKOTA SAYS FED SHOULD DO MORE TO SPUR ECONOMY, CURB UNEMPLOYMENT, SEES ONLY MODERATE U.S. GROWTH OVER NEXT 2 YEARS…”

MBS Live Chat – 1:16PM

“The banks opening tomorrow in Cyprus s/b interesting. “Hi, thanks for coming in. We don’t actually have any Euro’s to give out, but if you want to give us some more, we’ll gladly take them.”…”

MBS Live Chat – 1:03PM

“Bit soft on the demand side, but not overly so. A bit lower on the yield award washes that out. Indirects in line. VERY uneventful “B” auction….”

MBS Live Chat – 12:55PM

“REPRICE : 12:55 PM – Wells Fargo Better…”

MND NewsWire – 9:34AM

“This study simply shows that even high paid mid-level mortgage securitization managers are no more inteligent than their high paid Wall Street counter parts. They are all equally motivated by greed. I do take exception to the “evidence” that “bad incentives caused loan officers…to relax lending standards…”

Today’s Rates
Best Execution
Rate Change
30 Yr FRM 3.60% -0.04
15 Yr FRM 2.93% -0.03
FHA 30 Year Fixed 3.31% -0.04
Jumbo 30 Year Fixed 3.70% -0.04
5/1 Yr ARM 3.01% +0.01
Average Mortgage Rates
Rate Points Change
FHFA *
15 Yr. Fixed 2.78% 0.76 +0.08
30 Yr. Fixed 3.53% 1.11 +0.06
MBA **
30 Yr. Fixed 3.82% 0.38 +0.01
15 Yr. Fixed 3.02% 0.36 +0.01
30 Yr. Jumbo 3.95% 0.36 +0.05
30 Yr. FHA 3.53% 0.31 +0.00
5/1 ARM 3.02% 0.36 +0.01
Freddie Mac **
30 Yr. Fixed 3.54% 0.80 -0.09
15 Yr. Fixed 2.72% 0.70 -0.07
1 Yr. ARM 2.63% 0.40 -0.01
5/1 Yr. ARM 2.61% 0.60 +0.00
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
Secondary Markets
MBS
Price Change
30YR FNMA 3.0 103.14 +0.30
30YR FNMA 3.5 105.59 +0.25
30YR GNMA 3.0 104.55 +0.30
30YR GNMA 3.5 107.55 +0.22
15YR FNMA 3.0 105.19 +0.13
15YR FNMA 2.5 103.75 +0.20
Treasuries
Yield Change
2 YR 0.2461% -0.0039
5 YR 0.7338% -0.0421
10 YR 1.8454% -0.0657
30 YR 3.0863% -0.0548
Prices as of: 3/27/2013 4:32PM EST
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
Secondary Marketing Managers:
If you are interested in gaining access to the most accurate real-time back-month TBA indications from Thomson Reuters and Tradeweb. Request More Information
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Daily Rate Update: Mortgage Rates Break Cyprus Slide, Move to 2-Week Lows

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30 Year Fixed

3.60%   -0.04

15 Year Fixed

2.93%   -0.03

10YR Treasury

1.85%   -0.0657

FNMA 30YR 3.5

105.59   +0.25

FNMA 15YR 2.5

105.19   +0.13

Mortgage Rates Break Cyprus Slide, Move to 2-Week Lows
March 27, 2013

Mortgage rates moved lower today at their fastest pace in more than a week, bringing them in line with their lowest levels since last week’s Cyprus-related market movement.  Lender pricing strategies continue to be varied and some lenders didn’t improve nearly as much as the average.  That said, it was enough to clearly tip the scales in favor of 3.625% as a prevailing Best-Execution rate (what is this?) for 30yr Fixed loans.  3.75% and 3.5% may be more viable depending on the scenario and the lender.  

Keep in mind when we reference these adjacent rates that differences in borrowing costs are implied.  For example, 3.5, 3.625, and 3.75% are all likely available from one lender, but different lenders have different costs associated with moving from one rate to the next.  In almost all cases, the cost to move down to 3.5% from 3.625% is higher than the cost to move from 3.75% to 3.625%.

The market movement that helped rates lower was seen almost exclusively in the overnight session during Asian and European trading hours.  Markets are still somewhat cautious with respect to Cyprus reopening banks tomorrow, but have have mostly moved on to worrying about Italian political headlines ahead of a three day weekend.  US Treasury and mortgage rates have been quite well connected to Italian credit spreads (which can be thought of as a gauge of economic risks in Italy–the higher those spreads, the lower our rates).  As headlines came across and following an Italian debt auction, those spreads led US rates to open at lower levels.

Tomorrow, markets will juggle what is expected to be important inbound news regarding Italy’s political situation as well as several important US economic reports.  Finally, the last of the week’s Treasury auctions will arrive earlier than normal and US markets will close early due to the Good Friday holiday the following day (markets will be fully closed on Friday).

Loan Originator Perspectives

“Nice move today with benchmark treasuries following more bad news out of Europe. Lenders have passed along some of the gains but seems they held a bit back. The market has an early close tomorrow and completely closed on Friday which in my opinion makes lenders a little conservative with pricing. I would recommend floating through the weekend but if you must lock before the weekend, today would be the day.” –Victor Burek, Open Mortgage

Not a lot of logic to today’s big MBS rally, but it’s helping rates, and we’re locking clients who are ready to move forward on purchases or refis. It’s the best rate day of this week so far, and in the generally rising rate environment so far in 2013, better rate days like this aren’t to be ignored. ” –Julian Hebron, Branch Manager, RPM Mortgage

Thanks Cyprus. Let’s hope the Eurodrama continues. If so look for rates to continue to improve. We might even get a spooked stock market that would help bonds to some extent.
” –Mike Owens, Partner, Horizon Financial Inc.


Today’s Best-Execution Rates

  • 30YR FIXED – 3.75%, 3.625% coming back into view
  • FHA/VA – 3.375-3.5% (varies more between lenders than conventional 30yr Fixed)
  • 15 YEAR FIXED –  3.00%, 2.875% coming back into view.
  • 5 YEAR ARMS –  2.625-3.25% depending on the lender


Ongoing Lock/Float Considerations

  • Rates have risen moderately but consistently since hitting their all-time lows in September and October 2012.
  • Regardless of global or domestic economic weakness, the subsiding fear of a disorderly EU breakup will continue to prevent rates from getting back to those lows.
  • This is very likely to be the case unless a similarly panic-inducing event were to come into focus, or if a disorderly break-up regained the spotlight.
  • Sequestration, negative growth, and generally choppy political and economic environments around the world DO NOT constitute that sort of panic.
  • This is a “rising rate environment” until further notice, though pockets of recovery and consolidation can provide smaller-scale opportunities against the larger-scale backdrop.
  • (As always, please keep in mind that our talk of Best-Execution always pertains to a completely ideal scenario.  There can be all sorts of reasons that your quoted rate would not be the same as our average rates, and in those cases, assuming you’re following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).
30 Year Fixed Rate Mortgage

15 Year Fixed Rate Mortgage

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Today’s Rates
Best Execution
Rate Change
30 Yr FRM 3.60% -0.04
15 Yr FRM 2.93% -0.03
FHA 30 Year Fixed 3.31% -0.04
Jumbo 30 Year Fixed 3.70% -0.04
5/1 Yr ARM 3.01% +0.01
Average Mortgage Rates
Rate Points Change
FHFA *
15 Yr. Fixed 2.78% 0.76 +0.08
30 Yr. Fixed 3.53% 1.11 +0.06
MBA **
30 Yr. Fixed 3.82% 0.38 +0.01
15 Yr. Fixed 3.02% 0.36 +0.01
30 Yr. Jumbo 3.95% 0.36 +0.05
30 Yr. FHA 3.53% 0.31 +0.00
5/1 ARM 3.02% 0.36 +0.01
Freddie Mac **
30 Yr. Fixed 3.54% 0.80 -0.09
15 Yr. Fixed 2.72% 0.70 -0.07
1 Yr. ARM 2.63% 0.40 -0.01
5/1 Yr. ARM 2.61% 0.60 +0.00
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
Secondary Markets
MBS
Price Change
30YR FNMA 3.0 103.14 +0.30
30YR FNMA 3.5 105.59 +0.25
30YR GNMA 3.0 104.55 +0.30
30YR GNMA 3.5 107.55 +0.22
15YR FNMA 3.0 105.19 +0.13
15YR FNMA 2.5 103.75 +0.20
Treasuries
Yield Change
2 YR 0.2461% -0.0039
5 YR 0.7338% -0.0421
10 YR 1.8454% -0.0657
30 YR 3.0863% -0.0548
Prices as of: 3/27/2013 4:32PM EST
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
Secondary Marketing Managers:
If you are interested in gaining access to the most accurate real-time back-month TBA indications from Thomson Reuters and Tradeweb. Request More Information
About This Report

Mortgage News Daily is a trusted source of mortgage rate market data and analysis, with over 1 million readers each month.  Unlike many rate surveys, our survey is conducted on a daily basis and is designed to bring you the most current and accurate rate data available.  We use a proprietary formula to calculate averages based on best-execution rates from top lender’s rate sheets, also taking into account feedback from hundreds of mortgage market professionals around the country.

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This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments. Rates presented in this report are averages and are subject to change without notice.
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[MND NewsWire] – Servicers Report Loan Performance Continued to Increase in Q4

Servicers Report Loan Performance Continued to Increase in Q4

Posted to: MND NewsWire
Wednesday, March 27, 2013 1:28 PM

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The Office of Comptroller of the Currency (OCC) is reporting that the quality of mortgage loans serviced by selected national and federal savings banks continued to improve in the fourth quarter of 2012.  OCC’s Mortgage Metric Report covers 29.0 million loans with $4.9 trillion in principal balances, approximately 57 percent of outstanding mortgage loans in the U.S.

Current and performing loans increased from 88.6 percent in the third quarter to 89.4 percent at the end of December.  In December 2012 performing loans constituted 88.0 percent of first lien mortgages…

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[MBS Commentary] – MBS RECAP: Bond Markets Rally As Eurozone Braces For Impact

MBS RECAP: Bond Markets Rally As Eurozone Braces For Impact

Posted to: MBS Commentary
Wednesday, March 27, 2013 4:09 PM

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The domestic hours, like so many past examples, turned out to be relatively contained by the time European markets had their say.  This time, they said good things to MBS and Treasuries, namely that there’s still a bit of concern over the handling of the Cyprus bailout and a lot of concern over what headlines may come tomorrow from Italy.  We can talk all about all sorts of probable considerations for today’s bond markets, but at the end of the day (and at the beginning for that matter), it’s been all about Italy.

Between stocks, Eurodollars, Bund yields (those are German 10yr notes), and Italian credit spreads, US Treasuries exhibited the highest degree of correlation to Italian credit spreads.  In fact, both returned to their post-italian election levels for the first time since March 5th.  This favoring of Italy is readily apparent in the chart.  Teal and Green are Germany and the Euro whereas White and Yellow are 10yr Treasuries and Italian spreads.  Forgive the Treasuries their early month trespasses higher after stronger economic data and focus on how they broke away from the other two in late February and again since mid-March, before ultimately surging lower much more quickly today (note that we have Italian spreads INVERTED so that LOWER=More Risk)

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[Mortgage Rate Watch] – Mortgage Rates Break Cyprus Slide, Move to 2-Week Lows

Mortgage Rates Break Cyprus Slide, Move to 2-Week Lows

Posted to: Mortgage Rate Watch
Wednesday, March 27, 2013 4:13 PM

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Mortgage rates moved lower today at their fastest pace in more than a week, bringing them in line with their lowest levels since last week’s Cyprus-related market movement.  Lender pricing strategies continue to be varied and some lenders didn’t improve nearly as much as the average.  That said, it was enough to clearly tip the scales in favor of 3.625% as a prevailing Best-Execution rate (what is this?) for 30yr Fixed loans.  3.75% and 3.5% may be more viable depending on the scenario and the lender.  

Keep in mind when we reference these adjacent rates that differences in borrowing costs are implied.  For example, 3.5, 3.625, and 3.75% are all likely available from one lender, but different lenders have different costs associated with moving from one rate to the next.  In almost all cases, the cost to move down to 3.5% from 3.625% is higher than the cost to move from 3.75% to 3.625%.

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[MND NewsWire] – Freddie Mac Offers New Streamlined Modification

Freddie Mac Offers New Streamlined Modification

Posted to: MND NewsWire
Wednesday, March 27, 2013 11:47 AM

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Freddie Mac has announced a new Streamlined Modification Program that it says will “open a new gateway to mortgage relief for many of American’s stuggling borrowers.”  Starting July 1, servicers will proactively offer the program to eligible borrowers who are 90 or more days delinquent on mortgages that are at least 12 months old.

The new program can cut monthly mortgage payments as much as other modification programs but does not require borrowers to submit documentation.  They merely accept the…

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[MND NewsWire] – Foreclosure Prevention has aided 2.7 million Fannie and Freddie Borrowers

Foreclosure Prevention has aided 2.7 million Fannie and Freddie Borrowers

Posted to: MND NewsWire
Wednesday, March 27, 2013 11:26 AM

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The Federal Housing Finance Agency (FHFA) says that Freddie Mac and Fannie Mae (the GSEs) assisted 130,000 homeowners with one or more of their foreclosure prevention programs in the fourth quarter of 2012.  These actions brought the total for the entire year to 540,000 and to 2.7 million since the GSEs were placed in federal conservatorship in 2008.

In the fourth quarter home retention actions numbered 97,689, including loan modifications, repayment and forbearance plans and there were 32,642 home forfeiture actions, most of which were short sales…

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