Daily Newsletter: Over-List Price Sales Soar in California; Mortgage Rates Finally Make a Move; Foreclosure Progress Held up by Judicial States

View this Report in your Web Browser | Forward to a Friend | Subscribe
dailynewsletter.png
30 Year Fixed
4.14% +0.03
15 Year Fixed
3.28% +0.03
10YR Treasury
2.55% +0.0164
FNMA 30YR 3.5
102.56 +0.02
FNMA 15YR 2.5
103.83 +0.05
View Today’s Rates
Thursday October 31, 2013
MND NewsWire – 4:59PM
California is Sellers’ Market as Over-List Price Sales Soar
Nearly half of the homes sold so far this year in California went for more than their asking price . Such sales usually result from so-called “bidding wars” when multiple sellers submit …
Mortgage Rate Watch – 5:23PM
Mortgage Rates Finally Make a Move
After 5 straight days of almost no change on average, mortgage rates finally made a move today. Unfortunately, it wasn’t in the direction that most would hope. On a positive note, the …
MND NewsWire – 11:58AM
Foreclosure Improvements Held Back by Judicial States
Completed foreclosures in September totaled 51,000 nationwide, down 39 percent from a year earlier when banks repossessed 84,000 homes. CoreLogic said, in its September National Foreclosure …
MND NewsWire – 11:20AM
Aging Housing Inventory Presents Bargain-Hunting Opportunities
America’s housing inventory is aging and that perhaps could present an opportunity for bargain-hunting homeowners. RealtyTrac’s Aging Homes Analysis shows that more than 70 percent …

Latest Video


Santelli: The wow factor of the Chicago PMI

Turnaround towns

Detroit: #1 housing turnaround city

More News from ‘Around the Web’

Today’s Comments

avatar.aspx MBS Commentary – 9:41AM
“Looks like MND has an inside source at NSA. Who knew they monitor Fed deliberations as well as foreign leaders?…”
avatar.aspx MBS Live Chat – 11:42AM
“not sure, just a thought. How did we come to say they are prequalified? Who knows what they could ask….”
avatar.aspx MBS Live Chat – 11:44AM
“Seems that is a lot of responsibility on the LO to handle ATR requirements especially debt and income…”
avatar.aspx MBS Live Chat – 11:50AM
“my bank does pre-purchase committments..then when the buyer finds a home, you just need title and an appraisal….”
avatar.aspx MBS Live Chat – 11:51AM
“if a pre approval is done properly then it should be like that MD…I agree with Drews…”
Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.14% +0.03
15 Yr FRM 3.28% +0.03
FHA 30 Year Fixed 3.83% +0.03
Jumbo 30 Year Fixed 4.14% +0.02
5/1 Yr ARM 3.12% +0.01

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 4.33% 0.26 -0.06
15 Yr. Fixed 3.42% 0.30 -0.09
30 Yr. Jumbo 4.36% 0.27 -0.07
30 Yr. FHA 4.06% 0.17 -0.09
5/1 ARM 3.17% 0.38 -0.08
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 4.10% 0.70 -0.03
15 Yr. Fixed 3.20% 0.70 -0.04
1 Yr. ARM 2.64% 0.40 +0.04
5/1 Yr. ARM 2.96% 0.40 -0.04

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 98.58 -0.09
30YR FNMA 3.5 102.56 +0.02
30YR GNMA 3.0 99.59 -0.05
30YR GNMA 3.5 103.64 +0.05
15YR FNMA 3.0 103.83 +0.05
15YR FNMA 2.5 100.98 -0.02
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 0.3089% -0.0038
5 YR 1.3246% +0.0114
10 YR 2.5506% +0.0164
30 YR 3.6369% -0.0043
Prices as of: 10/31/2013 4:31PM 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
View this Report in your Web Browser | Forward to a Friend | Subscribe
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.

Daily Rate Update: Mortgage Rates Finally Make a Move

View this Report in your Web Browser | Forward to a Friend | Subscribe
dailyrateheader.png
30 Year Fixed
4.14% +0.03
15 Year Fixed
3.28% +0.03
10YR Treasury
2.55% +0.0164
FNMA 30YR 3.5
102.56 +0.02
FNMA 15YR 2.5
103.83 +0.05
View Today’s Rates
Mortgage Rates Finally Make a Move
October 31, 2013
After 5 straight days of almost no change on average, mortgage rates finally made a move today. Unfortunately, it wasn’t in the direction that most would hope. On a positive note, the deterioration was only seen in the “cost” side of the equation, meaning that you’d likely be quoted the same rate as yesterday afternoon, but with slightly higher closing costs (or lower lender credit, depending on your scenario). As such the most prevalent Conforming 30yr fixed rate (best-execution) remains at 4.125%.

Today’s weakness was almost exclusively a factor of one surprisingly strong piece of economic data. We often talk about the interplay between economic data and rates, focusing mainly on the important employment reports. That’s because the Employment Situation Report is by far and away the most reliable market mover for interest rates when it comes to economic reports.

Other reports can have an impact, but it’s usually smaller and happens less consistently. When it comes to the non-employment-related reports shaking up mortgage rates, it takes a big deviation from the market’s forecast.

In other words: data surveys are a fixture in financial markets. For any major report there will always be 30-80 prominent economists officially registering their predictions for upcoming data. When the data is released, if it’s much stronger or weaker than the forecast, markets react accordingly.

In today’s case, it was the Institute for Supply Management of Chicago with their monthly Purchasing Manager’s Index (or “Chicago PMI” for short) that shook things up. This is a survey of business conditions in the Chicago area, which has proven to be similar enough in composition and economic trends to the entire nation that it has become a well-regarded report.

The problem for mortgage rates is that this well-regarded report moved a whole lot more than it normally does. In fact, this was the biggest jump in over 30 years. Until that point in the day, rates looked poised to drop a bit, but the stronger economic data caused bond markets to weaken, meaning prices fell and rates rose.

Loan Originator Perspectives

“Bit of a selloff today as Chicago PMI data was surprisingly strong. While still within recent ranges, borrower pricing is slightly worse for same rates as last few days. All eyes turning to next weeks October NFP report. Whether markets will discount its validity given the DC Drama remains to be seen.” –Ted Rood, Senior Originator, Wintrust Mortgage

“What started as a very promising morning was quickly destroyed by a much better than expected Chicago PMI. Despite the surprising reports and the reprices to follow, rates are about the same as yesterday afternoon. As the day has progressed, we have regained much of the earlier losses, so I like floating overnight as lenders will be slow to pass along the improvements.” –Victor Burek, Open Mortgage

Today’s Best-Execution Rates

  • 30YR FIXED – 4.125%
  • FHA/VA – 3.75-4.0%
  • 15 YEAR FIXED – 3.25-3.375%
  • 5 YEAR ARMS – 3.0-3.50% depending on the lender


Ongoing Lock/Float Considerations

  • Uncertainty over the Fed’s bond-buying plans and more recently over Fiscal Policy has been making for a tough interest rate environment.
  • A lack of data due to the government shutdown caused rates to experience moments of paralysis while headlines suggesting the shutdown might/might-not end, as well as a seizing-up of short term funding markets caused unexpectedly high volatility–enough to be felt in longer term rates like mortgages.
  • After a deal was reached to avoid going over the debt ceiling, funding markets thawed and rates returned to the same ‘wait and see’ range that existed before the Fiscal drama.
  • Markets continue to be most interested in economic data and its suggestions about the longer term trajectory of the economy. This will shape expectations for Fed policy in the coming months, and thus inform the direction of interest rates.
  • The stronger the data the more likely the Fed is seen as reducing asset purchases. Rates would rise under this scenario, but the most recent FOMC Meeting (and more importantly, the Fed’s decision to hold off on tapering) suggests that they’ll attempt to keep the pace of rising rates moderate as long as inflation isn’t adversely affected. The delayed release of the September jobs numbers on October 22nd helps confirm that.
  • (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
31?w=360
15 Year Fixed Rate Mortgage
31?w=360&p=15YRFRM

Co-branding this Report
Enable co-branding to personalize this report with your business information here. Learn more about co-branding with NO competitor ads.

Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.14% +0.03
15 Yr FRM 3.28% +0.03
FHA 30 Year Fixed 3.83% +0.03
Jumbo 30 Year Fixed 4.14% +0.02
5/1 Yr ARM 3.12% +0.01

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 4.33% 0.26 -0.06
15 Yr. Fixed 3.42% 0.30 -0.09
30 Yr. Jumbo 4.36% 0.27 -0.07
30 Yr. FHA 4.06% 0.17 -0.09
5/1 ARM 3.17% 0.38 -0.08
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 4.10% 0.70 -0.03
15 Yr. Fixed 3.20% 0.70 -0.04
1 Yr. ARM 2.64% 0.40 +0.04
5/1 Yr. ARM 2.96% 0.40 -0.04

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 98.58 -0.09
30YR FNMA 3.5 102.56 +0.02
30YR GNMA 3.0 99.59 -0.05
30YR GNMA 3.5 103.64 +0.05
15YR FNMA 3.0 103.83 +0.05
15YR FNMA 2.5 100.98 -0.02
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 0.3089% -0.0038
5 YR 1.3246% +0.0114
10 YR 2.5506% +0.0164
30 YR 3.6369% -0.0043
Prices as of: 10/31/2013 4:31PM EST

TR_Eikon_Email.png

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.

MBS Commentary – MBS RECAP: Surprisingly Unchanged After Bumpy Ride

MBS RECAP: Surprisingly Unchanged After Bumpy Ride

Posted to: MBS Commentary
Thursday, October 31, 2013 4:59 PM

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

The past two days have been quite something for MBS markets–not in any meaningful way, but certainly frustrating. Reason being: BOTH days have opened at higher levels than every single session since last Tuesday’s NFP and BOTH have closed below the lowest closing levels from any of those days. I sometimes mention “inside days” (where trading ranges are contained inside the previous sessions’ range). These were two examples of “outside days,” and not just outside the previous session, but outside most of the past two weeks!

That’s not all that uncommon after holding a range that’s as narrow as most of the past two weeks, but it’s far less common to see it two days in a row. Imagine you’re a bowling pin that’s been watching gutterballs all day. Then you and your nine buddies suddenly get knocked over. Thankfully you get picked back up shortly thereafter and can get back to the business of watching gutterballs, but wait! Another strike!

These things happen in bowling and MBS, but they’re no fun for the pins or the MBS-watchers respectively. It may not have felt like it if you were watching too closely, but MBS ended up in positive territory by the end of the day.

(READ THE FULL POST)

More from MND:

If you have trouble viewing this email, you can read the full post at http://www.mortgagenewsdaily.com/mortgage_rates/blog/330028.aspx

You were sent this email because you opted to receive email alerts when a new article was published to this Mortgage News Daily channel. To adjust your email settings:
Manage Your Email

Unsubscribe from all Email Communications

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

MND NewsWire – NAR Voices Approval of Revamped QRM

NAR Voices Approval of Revamped QRM

Posted to: MND NewsWire
Thursday, October 31, 2013 3:07 PM

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

The National Association of Realtors® (NAR) added its comments to those of other housing groups about a re-proposed definition of qualified residential mortgages (QRM). Six federal regulatory agencies redrafted an earlier version in late summer to bring it into alignment with the qualified mortgage (QM) definition already finalized by the Consumer Financial Protection Bureau (CFPB). The re-proposal is now in a period of public comment.

In its letter submitted on Wednesday NAR applauded the regulators for synchronizing the two definitions. Gary Thomas, NAR President said, “As the leading advocate for housing issues, NAR believes that aligning the QRM definition with the QM definition removes the risky product features and low- or no-documentation lending that led to increased defaults, without excluding those buyers who are unable to afford a high down payment.”

(READ THE FULL POST)

More from MND:

If you have trouble viewing this email, you can read the full post at http://www.mortgagenewsdaily.com/10312013_qm_qrm.asp

You were sent this email because you opted to receive email alerts when a new article was published to this Mortgage News Daily channel. To adjust your email settings:
Manage Your Email

Unsubscribe from all Email Communications

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

MND NewsWire – Senate Witnesses Agree on Need for Government MBS Guarantee

Senate Witnesses Agree on Need for Government MBS Guarantee

Posted to: MND NewsWire
Thursday, October 31, 2013 2:40 PM

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

The Senate Banking Committee held a hearing on Thursday on the preferred structure of any government guarantee of mortgage-backed securities (MBA). Committee Chairman Tim Johnson (D-SD) opened the hearing saying the details of how a new guarantee should be structured is paramount to a well-functioning national market. “The government guarantee in the current system ensures that qualifying mortgages are TBA eligible, which allows borrowers to lock in their interest rates and connects loans and MBS with investors from across the country and around the globe.

(READ THE FULL POST)

More from MND:

If you have trouble viewing this email, you can read the full post at http://www.mortgagenewsdaily.com/10312013_secondary_market_reform.asp

You were sent this email because you opted to receive email alerts when a new article was published to this Mortgage News Daily channel. To adjust your email settings:
Manage Your Email

Unsubscribe from all Email Communications

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

MBS Commentary – MBS MID-DAY: Rough Morning For Bond Markets Thanks to Chicago PMI

MBS MID-DAY: Rough Morning For Bond Markets Thanks to Chicago PMI

Posted to: MBS Commentary
Thursday, October 31, 2013 11:09 AM

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

Bond markets began the day with promise. Technical support levels managed to hold up overnight in Treasuries. MBS began the day in positive territory and were unfazed by the as-expected Jobless Claims data. That only left Chicago PMI on the data calendar for the rest of the day–a report that can cause fairly big movement even before it’s released.

This has to do with ISM Chicago (purveyors of the data) making it available to their subscribers 3 minutes before the official 9:45am release. On the occasions where the report is significantly stronger or weaker than expected, this almost always results in a noticeable reaction at 9:42-9:43. Such was the case today–so much so, in fact, that we put out a heads-up just before the release.

That heads-up could scarcely prepare us for the magnitude of the beat. It was the biggest improvement in more than 30 years for the data series–AND on the month of the government shutdown. The net effect is that MBS have given back all their gains from this morning, and Treasury yields are about 3 bps higher than yesterday. If those stats don’t seem too troubling, keep in mind that they were nearly 4bps lower on the day before the data. MBS were up over 10 ticks–and stably too! It’s not the end of the world in the bigger picture, but it was certainly an abrupt mid-day adjustment.
(READ THE FULL POST)

More from MND:

If you have trouble viewing this email, you can read the full post at http://www.mortgagenewsdaily.com/mortgage_rates/blog/329952.aspx

You were sent this email because you opted to receive email alerts when a new article was published to this Mortgage News Daily channel. To adjust your email settings:
Manage Your Email

Unsubscribe from all Email Communications

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

MND NewsWire – Foreclosure Improvements Held Back by Judicial States

Foreclosure Improvements Held Back by Judicial States

Posted to: MND NewsWire
Thursday, October 31, 2013 9:38 AM

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

Completed foreclosures in September totaled 51,000 nationwide, down 39 percent from a year earlier when banks repossessed 84,000 homes. CoreLogic said, in its September National Foreclosure Report, that the number of foreclosures last month was virtually identical to that in August.

By way of comparison, CoreLogic said that in what might be considered a more normal market, the period from 2001 to 2006, there were an average of 21,000 foreclosures completed each month. The approximately 4.6 million foreclosures completed in the 60 months since the financial crisis began in September 2008 average 76,700 per month.

In September the foreclosure inventory, that is the number of homes in some stage of foreclosure, stood at approximately 902,000, down one third from 1.4 million one year earlier. The inventory decreased by 3.3 percent from August to September. The inventory in September represented approximately 2.3 percent of mortgages homes in the U.S., down from 3.2 percent in September 2012.

“The foreclosure inventory continues to decline, now standing at an early 2009 level,” said Mark Fleming, chief economist for CoreLogic. “Just over 900,000 properties remain in the inventory, two thirds of them in judicial states where the foreclosure process is typically slower. Consequently, the pace of overall improvement in the inventory will slow down and distressed assets will cast a long shadow over housing markets in states with judicial foreclosure.”

(READ THE FULL POST)

More from MND:

If you have trouble viewing this email, you can read the full post at http://www.mortgagenewsdaily.com/10312013_corelogic_foreclosures.asp

You were sent this email because you opted to receive email alerts when a new article was published to this Mortgage News Daily channel. To adjust your email settings:
Manage Your Email

Unsubscribe from all Email Communications

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