Daily Newsletter: Mortgage Rates Rise for 1st Time in 3 Weeks; No Housing Bubble, but Maybe a ‘Bubble Mentality’; New HUD Definition for Qualified Mortgage

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30 Year Fixed
4.29% +0.01
15 Year Fixed
3.41% +0.01
10YR Treasury
2.62% -0.0109
FNMA 30YR 3.5
101.88 +0.14
FNMA 15YR 2.5
103.52 +0.17
View Today’s Rates
Monday September 30, 2013
Mortgage Rate Watch – 6:45PM
Mortgage Rates Rise; 1st Time in Nearly 3 Weeks
Mortgage rates rose very slightly today for the first time in 3 weeks. The difference in rate sheets compared to Friday’s latest was minimal, and some lenders were actually slightly …
MND NewsWire – 12:38PM
Shiller Sees no Housing Bubble, but Perhaps a ‘Bubble Mentality’
While the real estate market has been bubbling, Robert J. Shiller doesn’t think we are in a real estate bubble. At least not yet . Shiller who, along with Karl Case, developed the S&P …
MND NewsWire – 12:48PM
New HUD QM Definition: Biggest Impact, Lower Lender Legal Costs
Another definition of Qualified Mortgage (QM) was rolled out for comment today. This one, proposed by the Department of Housing and Urban Development (HUD) would apply to mortgages …
Pipeline Press – 10:47AM
Who Owns an LO’s Client List? The FHA Needs How Much? The MBA Addresses the Shutdown
“Rob, I attended a seminar last week, and one of the speakers mentioned something called ‘Freddith Mae’. Ever heard of that?” Nope – either I’m out of touch & confused, or someone …

Latest Video


Market to ignore Congress ‘crying wolf’: Pro

Shutdown worries weigh down on markets

Santelli’s Midday Bond Report

More News from ‘Around the Web’

Today’s Comments

avatar.aspx MBS Live Chat – 3:28PM
“same Lock/float consensus for a close on Oct 21? Lock it up?…”
avatar.aspx MBS Live Chat – 3:31PM
“I will say this until I go blue in the face. If you need to come on here and ask advice about whether you should lock from complete strangers who have never met or spoken to you ever, you are working with the wrong loan officer…”
avatar.aspx MBS Live Chat – 3:36PM
“I agree too, but on the other hand don’t you educate your client on the pros/cons of floating/locking and then have them decide? They might be on here to do research and get informed. Doesn’t mean they are working with the wrong person….”
avatar.aspx MBS Live Chat – 3:39PM
“LL, depends on the terms, I would say lock, only because rates are as good as they have been in the last 3 or so months, also, based on what has happened over the last few months when rates do rise, it will most likely be quick….”
avatar.aspx MBS Live Chat – 3:44PM
“MU, I seriously doubt most LO’s have their ear to the market than the regular MBS live user. I think it is wise for a consumer to use whatever tools are available to them to make a decision that is in their best interest, regardless of who they are working with, if I was a consumer I would do the same…”
Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.29% +0.01
15 Yr FRM 3.41% +0.01
FHA 30 Year Fixed 4.00% +0.00
Jumbo 30 Year Fixed 4.33% +0.00
5/1 Yr ARM 3.10% +0.02

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.62% 1.06 +0.18
30 Yr. Fixed 4.49% 1.21 +0.22
MBA ** hdr_arrow.png
30 Yr. Fixed 4.62% 0.41 -0.13
15 Yr. Fixed 3.68% 0.28 -0.13
30 Yr. Jumbo 4.66% 0.29 -0.17
30 Yr. FHA 4.32% 0.37 -0.18
5/1 ARM 3.39% 0.35 -0.15
Freddie Mac ** hdr_arrow.png
Current Mortgage Rates »
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
30 Yr. Fixed 4.32% 0.70 -0.18
15 Yr. Fixed 3.37% 0.70 -0.17
1 Yr. ARM 2.63% 0.40 -0.02
5/1 Yr. ARM 3.07% 0.50 -0.04

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 97.75 +0.16
30YR FNMA 3.5 101.88 +0.14
30YR GNMA 3.0 98.52 -0.03
30YR GNMA 3.5 102.72 -0.05
15YR FNMA 3.0 103.52 +0.17
15YR FNMA 2.5 100.59 +0.20
Treasuries hdr_arrow.png
Yield Change
Current MBS / Treasury Prices »
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
TR_Eikon_Email.png
2 YR 0.3207% -0.0156
5 YR 1.3880% -0.0146
10 YR 2.6154% -0.0109
30 YR 3.6934% +0.0096
Prices as of: 9/30/2013 4:30PM EST

23623981

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 and terms are subject to change without notice.
© 2013 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031
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Daily Rate Update: Mortgage Rates Rise; 1st Time in Nearly 3 Weeks

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dailyrateheader.png
30 Year Fixed
4.29% +0.01
15 Year Fixed
3.41% +0.01
10YR Treasury
2.62% -0.0109
FNMA 30YR 3.5
101.88 +0.14
FNMA 15YR 2.5
103.52 +0.17
View Today’s Rates
Mortgage Rates Rise; 1st Time in Nearly 3 Weeks
September 30, 2013
Mortgage rates rose very slightly today for the first time in 3 weeks. The difference in rate sheets compared to Friday’s latest was minimal, and some lenders were actually slightly better today. Despite the minimal rise, this technically ends an impressive streak of 13 straight days without moving higher. The average 30yr fixed rate was 4.75% when the streak began and now stands at 4.25% (best-execution) for conforming, 30yr Fixed loans. With the exception of Friday, today’s rate sheets are the best since June 19th for most lenders.

Financial markets began the week increasingly enthralled by the ‘Government Shutdown’ debate, though that’s still not much at all compared to mainstream media. Even within financial markets, the ‘fixed-income’ sector containing the Mortgage-Backed-Securities that most directly affect mortgage rates was much less interested in political developments than the stock market.

Rather than give the impression of being overly concerned by a potential shutdown, rates continue to suggest they’re waiting for input from important economic data in order to adjust expectations about Fed policy at the end of the month. The most important event to take in will be the jobs report currently scheduled for Friday, though if a government shutdown isn’t averted tonight, that report may be delayed indefinitely (because it’s published by the Bureau of Labor Statistics–a government office).

Loan Originator Perspectives

“Rates seem to have found a comfortable range while we await jobs data at the end of the week. Of course, the potential government shut down could also impact rates, but most likely our wonderful politicians will work out some kind of resolution before much damage is done. I continue to advise clients to lock if within 15 days of closing. Longer term locks should also consider locking as that would completely rule out being caught on the wrong side if we get some positive news, but I think floating overnight does not carry much risk but not sure if there would be much to gain. It will take a weak jobs report on Friday for us to see rates move in a sizable way.” –Victor Burek, Open Mortgage

“Rates remain close to Friday’s. All eyes are on our govt right now, wondering if an actual shutdown will occur. Lock it if you like it.” –Bob Van Gilder, Finance One Mortgage

“Political uncertainty can boost MBS demand, and market gained slightly as DC drama unfolded today. Ironic that fiscal dysfunction can help rates, but we’ll take it. With rates nearing three month lows, it’s tempting to lock in price gains, but floating remains a viable option, IF borrowers are working with an accessible, MBS informed loan officer.” –Ted Rood, Senior Originator, Wintrust Mortgage

Today’s Best-Execution Rates

  • 30YR FIXED – 4.25%
  • FHA/VA – 4.0-4.25%
  • 15 YEAR FIXED – 3.375-3.5%
  • 5 YEAR ARMS – 3.0-3.50% depending on the lender


Ongoing Lock/Float Considerations

  • Uncertainty over the Fed’s bond-buying plans is causing immense volatility in rates markets and generally leading rates quickly higher
  • Expectations for “tapering” (a reduction in “QE3” asset purchases) mounted over the summer and September 18th was seen as the most likely day for a potential tapering announcement
  • But the Fed decided to keep a change in QE amounts on hold until the economy could more convincingly show that rising rates (which had been rising because markets expected the Fed to taper!) wouldn’t be too big an impediment to further improvement.
  • That’s resulted in the first meaningful “pause” in the “rising rate environment” since it began in earnest in May, 2013. This won’t necessarily be an ongoing move in the other direction, and we’re nowhere near May’s rates yet, but it’s a good opportunity to get back in the market if rising rates pushed you out sometime between now and then.
  • The extent to which that remains true relies on incoming economic data. Strong data will increase the speculation that the next Fed meeting will contain a reduction in purchases
  • (As always, please keep in mind that our Best-Execution rate always pertains to a completely ideal scenario. There are many reasons a quoted rate may differ from 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
30?w=360
15 Year Fixed Rate Mortgage
30?w=360&p=15YRFRM

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Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.29% +0.01
15 Yr FRM 3.41% +0.01
FHA 30 Year Fixed 4.00% +0.00
Jumbo 30 Year Fixed 4.33% +0.00
5/1 Yr ARM 3.10% +0.02

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.62% 1.06 +0.18
30 Yr. Fixed 4.49% 1.21 +0.22
MBA ** hdr_arrow.png
30 Yr. Fixed 4.62% 0.41 -0.13
15 Yr. Fixed 3.68% 0.28 -0.13
30 Yr. Jumbo 4.66% 0.29 -0.17
30 Yr. FHA 4.32% 0.37 -0.18
5/1 ARM 3.39% 0.35 -0.15
Freddie Mac ** hdr_arrow.png
Current Mortgage Rates »
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
30 Yr. Fixed 4.32% 0.70 -0.18
15 Yr. Fixed 3.37% 0.70 -0.17
1 Yr. ARM 2.63% 0.40 -0.02
5/1 Yr. ARM 3.07% 0.50 -0.04

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 97.75 +0.16
30YR FNMA 3.5 101.88 +0.14
30YR GNMA 3.0 98.52 -0.03
30YR GNMA 3.5 102.72 -0.05
15YR FNMA 3.0 103.52 +0.17
15YR FNMA 2.5 100.59 +0.20
Treasuries hdr_arrow.png
Yield Change
Current MBS / Treasury Prices »
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
2 YR 0.3207% -0.0156
5 YR 1.3880% -0.0146
10 YR 2.6154% -0.0109
30 YR 3.6934% +0.0096
Prices as of: 9/30/2013 4:30PM EST

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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.
© 2013 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031
View this Report in your Web Browser | Forward to a Friend | Subscribe
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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MBS Commentary – MBS RECAP: Government Shutdown Limbo; Bumpy Ride, but Strong Finish

MBS RECAP: Government Shutdown Limbo; Bumpy Ride, but Strong Finish

Posted to: MBS Commentary
Monday, September 30, 2013 4:09 PM

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In the context of the nearly month-long rally in place since Sep 6th, today’s MBS movements were more volatile than average. Fannie 3.5s started the day in line with Friday’s highs and ratcheted abruptly lower, especially into 10:30am. The bounce back to unchanged levels was nearly as abrupt, and quickly have way to another tumble to the lows. The day ended with prices progressing steadily to the best levels of the day by the last hour of trade.

This was a mere shadow of the volatility present in Treasuries where 10yr yields broke fully outside Friday’s range, both at the lows and highs, by 10:30. Yields bounced twice just over 2.64 before progressing in the same positive direction as MBS into the close. We’re reluctant to put too much emphasis on government shutdown headlines though a resolution or lack thereof will still likely have an impact on tomorrow morning’s trading levels.

(READ THE FULL POST)

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MND NewsWire – New HUD QM Definition: Biggest Impact, Lower Lender Legal Costs

New HUD QM Definition: Biggest Impact, Lower Lender Legal Costs

Posted to: MND NewsWire
Monday, September 30, 2013 11:41 AM

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Another definition of Qualified Mortgage (QM) was rolled out for comment today. This one, proposed by the Department of Housing and Urban Development (HUD) would apply to mortgages insured, guaranteed, or administered by HUD and to single family mortgages insured by the Federal Housing Administration (FHA).

HUD says its proposal, open for public comments until October 30, is aligned with the Ability-to-Repay criteria set out in the Truth in Lending Act (TILA) and also builds off of the QM rule from the Consumer Financial Protection Bureau (CFPB) finalized earlier this year.

(READ THE FULL POST)

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MND NewsWire – Shiller Sees no Housing Bubble, but Perhaps a ‘Bubble Mentality’

Shiller Sees no Housing Bubble, but Perhaps a ‘Bubble Mentality’

Posted to: MND NewsWire
Monday, September 30, 2013 10:07 AM

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While the real estate market has been bubbling, Robert J. Shiller doesn’t think we are in a real estate bubble. At least not yet. Shiller who, along with Karl Case, developed the S&P/Case-Shiller Composite Home Price Index, wrote a column for the this Sunday’s New York Times explaining why 2013 is not 2004.

The Case-Shiller 10-City Composite Index has seen a real, inflation-corrected rise of 18.4 percent in the 16 months ended in July, Shiller said, only about 4 basis points below the largest 16 month increase during the years-long run-up to the 2008 financial crisis. Is it possible, Shiller asks, “that we are lapsing into what I call a bubble mentality – a self-reinforcing cycle of popular belief that prices can only go higher?”

He sees a lot of differences between then – the pre-2008 period – and now and uses the results of this year’s installment of a survey he and Case have conducted since 2003 to illustrate them. The survey involves sending questionnaire to a random sample of recent homebuyers in Boston, Milwaukee, Los Angeles, and San Francisco. The results from the most recent survey conducted in May and June suggest, Shiller said, that we are not in a bubble now but there are troubling signs we may be heading into one.

(READ THE FULL POST)

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MBS Commentary – MBS MID-DAY: Volatile Morning; Prices Stay Close to Unchanged

MBS MID-DAY: Volatile Morning; Prices Stay Close to Unchanged

Posted to: MBS Commentary
Monday, September 30, 2013 11:09 AM

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Bond markets started the day in slightly stronger territory though remained in line with Friday’s latest levels. Overnight events were supportive for Treasuries, including political drama at home and abroad (more details in the 9:13am Alert below). 10yr Treasury yields already were already bouncing off overnight lows just before 8am, but a reversal in the Italy-inspired flight to safety sent small shockwaves through European bond markets, further applying pressure to Treasuries.

The net effect was a bond market that was stronger at 8am, then weak enough by 10:30am to necessitate an early reprice risk. Several lenders repriced worse and now the weakness has ebbed and prices are back in line with Friday’s latest levels. Bottom line, the volatility was noticeable but moderate.

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Pipeline Press – Who Owns an LO’s Client List? The FHA Needs How Much? The MBA Addresses the Shutdown

Who Owns an LO’s Client List? The FHA Needs How Much? The MBA Addresses the Shutdown

Posted to: Pipeline Press
Monday, September 30, 2013 8:51 AM

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“Rob, I attended a seminar last week, and one of the speakers mentioned something called ‘Freddith Mae’. Ever heard of that?” Nope – either I’m out of touch & confused, or someone else is and you should ask for your money back. But one thing I am confused about, and it is probably only me, is what a “rule” is. When I was growing up, a rule was a rule. Now, since the industry is subject to the CFPB’s rulings, we seem to have a rule announced, then time for public comment, then a final rule, and a public comment period, and then amendments, with public comments, and then changes to those. Look how many times Reg. Z has been changed – maybe I am the one who is confused.

The big news for today comes from FHA, which announced it will need a $1.7 billion bailout from the Treasury to cover projected losses in its reverse mortgage programs (currently at $5 billion). Plenty of industry observers have been predicting this day. Federal Housing Administration Commissioner Carole Galante told Congress in a letter that her agency will withdraw the money from the Treasury before the fiscal year ends today, although Congressional approval is not required. The FHA suffered big losses when many reverse mortgage borrowers took large payments up-front and later ran into financial problems, often due to falling home values during the financial crisis. As we have all heard, the FHA is required by law to maintain reserves equal to 2% of the total amount of home mortgages it insures. The 2% capital reserve ratio is aimed at covering projected losses over the next 30 years in the agency’s Mutual Mortgage Insurance Fund.

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MBS Commentary – The Week Ahead: Government Shutdown Hogs Spotlight; Potential Jobs Report Delay

The Week Ahead: Government Shutdown Hogs Spotlight; Potential Jobs Report Delay

Posted to: MBS Commentary
Monday, September 30, 2013 7:17 AM

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A lot about how the week shapes up depends on what happens by midnight tonight with respect to the ‘government shutdown.’ The government agency responsible for the Employment Situation Report, the Bureau of Labor Statistics (BLS), said they would not be updating their website in the event of a shutdown.

Some news outlets are reporting that we would not have a jobs report if the government shutdown goes through on Tuesday morning, but the BLS also noted that it could release data that had already been collected. In the case of the jobs report, the relevant surveys have already taken place, so it’s not entirely clear how the report would be affected.

Whether the report is going to happen this Friday or not, the uncertainty about that fact takes a toll itself. So far that toll has mostly been seen in the form of lower stock prices, and perhaps marginal improvements for Treasury yields. Additionally, the data that does manage to report this week stands a chance to be less meaningful than it otherwise would be outside the shadow of fiscal drama.

11th hour resolutions are just about the only kind we’ve seen over the past few years, so it’s premature to expect a resolution any time much before the deadline. The Senate isn’t even scheduled to reconvene until 2pm Eastern, even though the House has drafted a bill that the Senate will likely amend and send back to the house.

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Daily Newsletter: FHA Required to Take Treasury Draw; Rates End Week at Lows; Multifamily/Commercial Debt Increases; Government Shutdown Drama

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dailynewsletter.png
30 Year Fixed
4.28% -0.06
15 Year Fixed
3.40% -0.04
10YR Treasury
2.63% -0.0199
FNMA 30YR 3.5
101.73 +0.22
FNMA 15YR 2.5
103.34 +0.19
View Today’s Rates
Friday September 27, 2013
MND NewsWire – 1:26PM
FHA Required to Take Treasury Draw
The Federal Housing Administration (FHA) notified Congress this morning that, as had been rumored earlier in the week, it will need to draw on its borrowing authority from the U.S. …
Mortgage Rate Watch – 4:29PM
Mortgage Rates Continue to New 3-Month Lows
Mortgage rates fell noticeably today, keeping alive an impressive streak of 13 days without higher rates. Three out of those 13 have been ‘unchanged,’ yesterday being one of them. There …
MND NewsWire – 2:03PM
REITs, Pension Plans Increase Multifamily Debt Holdings
Commercial and multi-family mortgage debt increased by $24.5 billion in the second quarter of 2013, with $10.9 billion of that being debt in the multi-family sector. The Mortgage Bankers …
Pipeline Press – 10:24AM
Don’t Ignore The BSA; Potential Government Shutdown Entering Investor Updates; Nationstar Takes Down $41 Billion in Servicing?
All the McDonalds and Burger King workers in California are rejoicing: the minimum wage in California is heading to $10/hour . This, coupled with the tax increases voted in last year …

Latest Video


FHA needs help

FHA seeks $1.7 Treasury bailout

‘I think there will be a shutdown’: Altman

More News from ‘Around the Web’

Today’s Comments

avatar.aspx MND NewsWire – 10:59AM
“Well it looks like FHA needs that bailout!! Who could have figured…right?!?! This industry continues to be a cesspool, plain and simple. There used to be this willfully ignorant, useful idiot named Jason Harris, on this board, that would argue about FHA not being subprime and, further, what a great…”
avatar.aspx MBS Live Chat – 2:02PM
“MG- lots of sub-primy talk on this board as of late. Seems the more regulators try to move us forward they are creating the same scenario we had not too long ago….”
avatar.aspx MBS Live Chat – 2:04PM
“I think the FHA sub-primey issue had more to do with the drastic pull back in guidelines in 07/08 and FHA suddenly being the only round hole in which many of the leftover square pegs would fit….”
avatar.aspx MBS Live Chat – 2:06PM
“I remember, FHA mix went from 15% to 60% overnight in my old shop…”
avatar.aspx MBS Live Chat – 3:00PM
“RTRS- PRESIDENT OBAMA TO MAKE STATEMENT AT WHITE HOUSE AT 3:30 P.M. EDT ON FISCAL ISSUES – WHITE HOUSE…”
Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.28% -0.06
15 Yr FRM 3.40% -0.04
FHA 30 Year Fixed 4.00% -0.06
Jumbo 30 Year Fixed 4.33% -0.03
5/1 Yr ARM 3.08% -0.02

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.62% 1.06 +0.18
30 Yr. Fixed 4.49% 1.21 +0.22
MBA ** hdr_arrow.png
30 Yr. Fixed 4.62% 0.41 -0.13
15 Yr. Fixed 3.68% 0.28 -0.13
30 Yr. Jumbo 4.66% 0.29 -0.17
30 Yr. FHA 4.32% 0.37 -0.18
5/1 ARM 3.39% 0.35 -0.15
Freddie Mac ** hdr_arrow.png
Current Mortgage Rates »
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
30 Yr. Fixed 4.32% 0.70 -0.18
15 Yr. Fixed 3.37% 0.70 -0.17
1 Yr. ARM 2.63% 0.40 -0.02
5/1 Yr. ARM 3.07% 0.50 -0.04

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 97.59 +0.25
30YR FNMA 3.5 101.73 +0.22
30YR GNMA 3.0 98.55 +0.20
30YR GNMA 3.5 102.77 +0.16
15YR FNMA 3.0 103.34 +0.19
15YR FNMA 2.5 100.39 +0.20
Treasuries hdr_arrow.png
Yield Change
Current MBS / Treasury Prices »
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
TR_Eikon_Email.png
2 YR 0.3363% -0.0039
5 YR 1.4026% -0.0292
10 YR 2.6263% -0.0199
30 YR 3.6838% -0.0122
Prices as of: 9/27/2013 4:28PM EST

23623981

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 and terms are subject to change without notice.
© 2013 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031
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Daily Rate Update: Mortgage Rates Continue to New 3-Month Lows

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dailyrateheader.png
30 Year Fixed
4.28% -0.06
15 Year Fixed
3.40% -0.04
10YR Treasury
2.63% -0.0199
FNMA 30YR 3.5
101.73 +0.22
FNMA 15YR 2.5
103.34 +0.19
View Today’s Rates
Mortgage Rates Continue to New 3-Month Lows
September 27, 2013
Mortgage rates fell noticeably today, keeping alive an impressive streak of 13 days without higher rates. Three out of those 13 have been ‘unchanged,’ yesterday being one of them. There was a chance this marked a shift in the positive momentum, but financial markets were quick to get back on the ‘lower rates’ bandwagon when it began rolling again this morning. Conforming, 30yr Fixed rates moved down to 4.25% (best-execution) for most lenders, a level not seen since June 19th. A decent amount of lenders remain at 4.375% while others have reasonable buydowns to 4.125%, depending on your scenario and personal preference.

Today’s positivity was made possible by a team effort of market movers. Although it is one of the least significant of the bunch, Italian political and economic turmoil pushed investors toward safer-haven debt such as US Treasuries. This helped Treasuries hold their ground overnight and helped MBS (the “mortgage-backed-securities” that most directly influence mortgage rates) begin the day in slightly positive territory (positive = higher prices = lower rates).

More significant was the weak economic data in the form of the worst read on Consumer Sentiment since April just before 10am. Bond markets, including MBS, hadn’t done much until then, but had a green light for further gains afterward. Debt-Ceiling drama kept the tone supportive into the afternoon. This might be slightly counterintuitive considering one of the supposed consequences of a violation of the debt ceiling is an inability for the US to “pay its bills.” The thinking is that if the US defaults on its debt that rates would quickly rise.

Those participating in reality know that the US isn’t going to default on its debt in the near term future and that most of these theories are perpetuated by incessant political posturing. The more realistic victim here is the US economy, and lower rates are a very natural consequence of economic weakness. This is usually true in general, but doubly true right now as market participants are keen to observe any meaningful shifts in economic data that might offer clues as to how the Federal Reserve will proceed with it’s bond buying program (QE3).

That’s important for rates because the steady flow of stimulus from QE3 is a key factor in the historically low rates of the past 2 years, and it was the threat that the flow would be disrupted or abated that sent rates moving so quickly higher in May. The most important clue of any given month arrives next week with the Employment Situation Report on Friday. That said, if the government shut-down actually happens, that report will be delayed until the following week.

Loan Originator Perspectives

“Great way to end the week, with bonds rallying. Just about every lender did reprice today and the rate sheets that I have seen are the best in a long time. I think next week we give back some of these gains going into non farm payrolls, but I am sticking with my same guidance. If you are within 15 days of closing, lock today. Longer term closings could probably float til next week, but with the gains today there is nothing wrong with locking.” –Victor Burek, Open Mortgage

“Look like the “Friendly Friday” trend continues. Mortgage rates ever so slightly better than yesterday. Why not take advantage of some of the lowest rates within last three months?” –Bob Van Gilder, Finance One Mortgage

“Yesterday’s moderate weakness is now a distant memory as rate markets logged nice gains at week end. Positive lender reprices were common throughout the day, and for the week we gained over 100 bps in loan pricing. The trend remains our friend, have to wonder if markets agree with the Fed that the economy is indeed far from robust. Should be a happy weekend for home shoppers, rates best they’re been in over 2 months.” –Ted Rood, Senior Originator, Wintrust Mortgage

“Another good day and overall week for rate watchers. Next weeks jobs report will be undoubtedly the difference maker to this rally. Until then be weary of secondary traders hedging for a worst cast scenario report, potential tape bombs, and pipeline control. Fridays are not typically lock days, but with rates at 3 month lows, and considering what we dealt with from June to date, borrowers may need to lock depending on their time frame to close. Proceed with caution.” –Constantine Floropoulos, Quontic Bank

“I think we are in nice rally at least until the run up to the jobs number. With shutdown uncertainty and fed fears put to the side for a while there is no reason not to float a day or two and try to get to 4.25%.” –Chris Marconi VP Residential Lending First Midwest Bank

Today’s Best-Execution Rates

  • 30YR FIXED – 4.25%
  • FHA/VA – 4.0-4.25%
  • 15 YEAR FIXED – 3.375-3.5%
  • 5 YEAR ARMS – 3.0-3.50% depending on the lender


Ongoing Lock/Float Considerations

  • Uncertainty over the Fed’s bond-buying plans is causing immense volatility in rates markets and generally leading rates quickly higher
  • Expectations for “tapering” (a reduction in “QE3” asset purchases) mounted over the summer and September 18th was seen as the most likely day for a potential tapering announcement
  • But the Fed decided to keep a change in QE amounts on hold until the economy could more convincingly show that rising rates (which had been rising because markets expected the Fed to taper!) wouldn’t be too big an impediment to further improvement.
  • That’s resulted in the first meaningful “pause” in the “rising rate environment” since it began in earnest in May, 2013. This won’t necessarily be an ongoing move in the other direction, and we’re nowhere near May’s rates yet, but it’s a good opportunity to get back in the market if rising rates pushed you out sometime between now and then.
  • The extent to which that remains true relies on incoming economic data. Strong data will increase the speculation that the next Fed meeting will contain a reduction in purchases
  • (As always, please keep in mind that our Best-Execution rate always pertains to a completely ideal scenario. There are many reasons a quoted rate may differ from 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
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15 Year Fixed Rate Mortgage
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Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.28% -0.06
15 Yr FRM 3.40% -0.04
FHA 30 Year Fixed 4.00% -0.06
Jumbo 30 Year Fixed 4.33% -0.03
5/1 Yr ARM 3.08% -0.02

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.62% 1.06 +0.18
30 Yr. Fixed 4.49% 1.21 +0.22
MBA ** hdr_arrow.png
30 Yr. Fixed 4.62% 0.41 -0.13
15 Yr. Fixed 3.68% 0.28 -0.13
30 Yr. Jumbo 4.66% 0.29 -0.17
30 Yr. FHA 4.32% 0.37 -0.18
5/1 ARM 3.39% 0.35 -0.15
Freddie Mac ** hdr_arrow.png
Current Mortgage Rates »
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
30 Yr. Fixed 4.32% 0.70 -0.18
15 Yr. Fixed 3.37% 0.70 -0.17
1 Yr. ARM 2.63% 0.40 -0.02
5/1 Yr. ARM 3.07% 0.50 -0.04

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 97.59 +0.25
30YR FNMA 3.5 101.73 +0.22
30YR GNMA 3.0 98.55 +0.20
30YR GNMA 3.5 102.77 +0.16
15YR FNMA 3.0 103.34 +0.19
15YR FNMA 2.5 100.39 +0.20
Treasuries hdr_arrow.png
Yield Change
Current MBS / Treasury Prices »
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
2 YR 0.3363% -0.0039
5 YR 1.4026% -0.0292
10 YR 2.6263% -0.0199
30 YR 3.6838% -0.0122
Prices as of: 9/27/2013 4:28PM EST

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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.
© 2013 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031
View this Report in your Web Browser | Forward to a Friend | Subscribe
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.
You were sent this email because you opted to receive our weekly or daily email reports. Go here to manage your email preferences or here to unsubscribe from all email communications.