Daily Newsletter: Home Price Appreciation Has Peaked; Mortgage Rates up Slightly from 2014 Lows; Brief History of Interest Rate Trends

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30 Year Fixed
4.12% +0.03
15 Year Fixed
3.26% +0.01
10YR Treasury
2.48% +0.0071
FNMA 30YR 3.5
102.97 +0.05
FNMA 15YR 2.5
103.94 +0.05
View Today’s Rates
Friday May 30, 2014
MND NewsWire – 12:25PM
Home Price Appreciation Has Peaked -Poll
In a poll of 31 property analysts Reuters news agency found consensus that the growth of house prices in the U.S. has peaked and that further increases over the next two years will …
Mortgage Rate Watch – 3:51PM
Mortgage Rates Slightly Higher from 2014 Lows; Big Week Ahead
Mortgage rates continued slightly higher today. This had more to do with a market-based continuation of yesterday’s momentum than it did with any of today’s data and events. Lenders …
MBS Commentary – 7:50AM
MBS Day Ahead: Brief Annotated History of Interest Rate Movements; What Next?
For the purposes of this discussion, ‘interest rates’ refer to mortgage rates and 10yr Treasury yields. Why 10yr yields? I just put together this knowledge base article to answer that …
Pipeline Press – 10:49AM
Freedom Continues to Grow; $500k Fine for RESPA Violation; Information on Individual Liability in CFPB Cases
“I’m going to retire and live off of my savings. The second day, I have no idea what I’ll do.” Quips aside, many Americans have no clue about how much money they’ll need to fund a financially …

Latest Video


Market storm on horizon?

Paulsen sees 10-year above 3.5% before years end: Paulsen

Putting your house to work

More News from ‘Around the Web’

Today’s Comments

avatar.aspx Pipeline Press – 11:39AM
“What times we live in. GM fails to recall 700k cars which results in 12 deaths and 47 injuries for a chip shot fine of 35mm for the giant automaker, meanwhile the CFPB fines some small AL mortgage outfit for 500k for failing to disclose properly. Something really wrong with that….”
avatar.aspx MBS Live Chat – 8:54AM
“so with negative consumption, that doesn’t bode well for GDP..not sure where people think this massive rebound is coming from…”
avatar.aspx MBS Live Chat – 8:59AM
“It’s a mystery to me as well. I think the next 3 to 5 mos will be the most important mos for the economy in awhile. QE ending and the prospect of higher policy rates, expectations of faster jobs and growth, ECB easing (maybe), Japan imploding, and China as a wild card. What can go wrong ?…”
avatar.aspx MBS Live Chat – 9:00AM
“the only explanation I have for it, is the talking heads, the economists they speak to are all rich, so things are great for them so they think it is great for everyone…”
avatar.aspx MBS Live Chat – 9:01AM
“Definitely a disconnect there, VB….”
avatar.aspx MBS Live Chat – 9:13AM
“VB, I think your point is legitimate. When I look at applications each day, your average guy is just struggling to get by. There is not a whole lot of disposable income and when you combine that with the fear of what has happened to our economy over the last 5 years, it is a recipe for caution and lack…”
avatar.aspx MBS Live Chat – 10:35AM
“holding 2.47 this morning seems like a decent show of strength after the recent rally. Have to assume the 10YR was/is a tinch overbought…”
avatar.aspx MBS Live Chat – 12:28PM
“Awesome news on home appreciation in newstream: “The analysts agreed that further price increases will likely be curbed by tight lending standards, slow wage growth, and a lack of first-time buyers, a group that might be further restrained by those factors.”…”
avatar.aspx MBS Live Chat – 12:31PM
“Are we nearing positive reprice territory?…”
avatar.aspx MBS Live Chat – 12:32PM
“some lenders, possibly. Depends on initial rate sheet time. Closer to the price trough = more possible….”
avatar.aspx MBS Live Chat – 12:33PM
“+3 – +4, and holding…maybe…”
Velocify_160x175.png

Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.12% +0.03
15 Yr FRM 3.26% +0.01
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 3.93% +0.02
5/1 Yr ARM 3.24% +0.00

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.80% 1.10 +0.13
30 Yr. Fixed 4.67% 1.44 +0.13
MBA ** hdr_arrow.png
30 Yr. Fixed 4.31% 0.15 -0.02
15 Yr. Fixed 3.42% 0.06 -0.01
30 Yr. Jumbo 4.23% 0.16 -0.01
30 Yr. FHA 4.04% -0.45 -0.02
5/1 ARM 3.13% 0.19 -0.01
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 4.12% 0.60 -0.02
15 Yr. Fixed 3.21% 0.50 -0.04
1 Yr. ARM 2.41% 0.40 -0.02
5/1 Yr. ARM 2.96% 0.30 +0.00

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 98.91 +0.02
30YR FNMA 3.5 102.97 +0.05
30YR GNMA 3.0 100.66 +0.09
30YR GNMA 3.5 103.91 +0.06
15YR FNMA 3.0 103.94 +0.05
15YR FNMA 2.5 101.59 -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
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2 YR 0.3750% -0.0039
5 YR 1.5391% +0.0098
10 YR 2.4750% +0.0071
30 YR 3.3253% -0.0033
Prices as of: 5/30/2014 4:32PM 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.
© 2014 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 Slightly Higher from 2014 Lows; Big Week Ahead

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dailyrateheader.png
30 Year Fixed
4.12% +0.03
15 Year Fixed
3.26% +0.01
10YR Treasury
2.48% +0.0071
FNMA 30YR 3.5
102.97 +0.05
FNMA 15YR 2.5
103.94 +0.05
View Today’s Rates
Mortgage Rates Slightly Higher from 2014 Lows; Big Week Ahead
May 30, 2014
Mortgage rates continued slightly higher today. This had more to do with a market-based continuation of yesterday’s momentum than it did with any of today’s data and events. Lenders’ rate sheets are most directly affected by trading of Mortgage-Backed-Securities (MBS), which are part of the broader “Fixed-Income” or simply “bond markets.”

Trading in bond markets has recently grown more exciting than it had been from February through April. As May draws to a close, we can look back and see more clearly that much of the positivity was (and still is) a factor of expectations for the European Central Bank (ECB) to embark on some sort of asset buying program, similar to the Fed’s QE. The ECB is also expected to cut its policy rates.

That’s the sort of big-picture development that global bond markets have a hard time ignoring. If one, small, individual nation were considering such a thing, no big deal. But the EU, collectively, is massive, and the trends in European bond markets have a clear and consistent effect on US bond markets.

Right now, the expectation for this stimulative move has made it very unfashionable for the likely beneficiaries to act as if they won’t benefit. More simply, the safest European debt along with US Treasuries would certainly benefit from the potential policy announcement (meaning rates would fall). Because markets are reasonably sure at least some of the potential changes are coming, they’re already out ahead of them (meaning that rates have fallen in anticipation of having reason to fall next week).

In short, this anticipation is what has kept the lid on any major correction toward higher rates over the past two months. Indeed, that’s been a frequent point made in this daily commentary. There is another factor however, and it’s one I talk about much less because it’s an even more abstruse concept than all this Central Bank business. It has to do with the sorts of bets that traders are making on the direction of interest rates.

To simplify this point greatly, there was a lopsided consensus for rates moving higher into 2014. Of course rates didn’t move higher and those traders were forced to make offsetting bets for rates to move lower. But the same dynamic has repeated itself on several occasions! Traders bet on higher rates, markets punish them, they get neutral, and then go right back to betting on higher rates again!

The reason I bring all this up today is that we’re FINALLY starting to see those bets among traders reach more of an equilibrium. Combine that with the fact that markets are already pricing in expectations of something fairly impressive from the European Central Bank next week, and the risk for a more serious reversal is as big as it has been recently. Please understand, this is not a prediction for rates to move in either direction, simply a warning that one of the potential scenarios is for quicker movement to higher rates.

For now, however, rates remain very close to the best levels in nearly a year, with only The past two days offering anything better. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) remains at least as low as 4.125%, with some lenders closer to 4.0%. Many borrowers will see today’s weakness in the form of higher closing costs vs yesterday. Expressed in terms of effective interest rates, the increase equates to 0.03%.

Loan Originator Perspective

“Much of the rally from this week was wiped away with the losses from yesterday. Of course, lenders have taken away much more than the price drop justifies, but that is to be expected. This morning it looked like the losses would continue but MBS has managed to rally off the lows. With today being Friday, I would think most lenders will probably hold back on passing along any gains unless we strongly rally into close. All that said, I think floating over the weekend is the way to go. Lets see how rate sheets look on Monday morning.” –Victor Burek, Open Mortgage

“Recent rate improvements took a breather today. No telling if this is a trend yet but next week sets up as a “high risk” week with the rate decisions from the ECB, and the all important Jobs Report on Friday. If you seriously evaluate the Risk / Reward tradeoff for mortgage rates into next week you probably would look at locking in your interest rate now and especially if you are on a short time frame to closing. Floating is a little risky right now in my opinion.” –Hugh W. Page, Sen. Mortgage Consultant, Capital Partners Mortgage

Today’s Best-Execution Rates

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

Ongoing Lock/Float Considerations

  • The Fed has stayed the course on their $10bln per meeting reduction in bond buying, though markets have handled it relatively calmly compared to the days of “coming to terms with tapering” in 2013.
  • Rates fell significantly in January, leveled-off in February and took choppy steps higher in March. From there, they settled into a flat range mostly consisting of 4.375 and 4.5%, but with occasional forays to 4.25 and 4.625%.
  • While the bias had been very slightly toward higher rates, it reversed course in April and rates returned to the lower end of the range by May 1st. As the “weather effects” fall out of the spotlight, market participants are seeing a bit more organic weakness in the economy than they’d expected.
  • Earlier in May, the focus looked to be returning to economic data, but that proved short-lived as prospects for European central bank easing overwhelmed some of the incoming data, pushing rates lower while data suggested a move higher.
  • As of the third week in May, rates were as low as they’ve been since June 2013, more than confirming a break below the 2014 range.
  • Looking back at recent movement, it’s had a disconcertingly small amount to do with ‘normal stuff’ like economic data and Fed policy. Temporary and unpredictable factors currently account for too much of the movement to make firm bets on rates moving either direction in the short term.
  • (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 4.12% +0.03
15 Yr FRM 3.26% +0.01
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 3.93% +0.02
5/1 Yr ARM 3.24% +0.00

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.80% 1.10 +0.13
30 Yr. Fixed 4.67% 1.44 +0.13
MBA ** hdr_arrow.png
30 Yr. Fixed 4.31% 0.15 -0.02
15 Yr. Fixed 3.42% 0.06 -0.01
30 Yr. Jumbo 4.23% 0.16 -0.01
30 Yr. FHA 4.04% -0.45 -0.02
5/1 ARM 3.13% 0.19 -0.01
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 4.12% 0.60 -0.02
15 Yr. Fixed 3.21% 0.50 -0.04
1 Yr. ARM 2.41% 0.40 -0.02
5/1 Yr. ARM 2.96% 0.30 +0.00

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 98.91 +0.02
30YR FNMA 3.5 102.97 +0.05
30YR GNMA 3.0 100.66 +0.09
30YR GNMA 3.5 103.91 +0.06
15YR FNMA 3.0 103.94 +0.05
15YR FNMA 2.5 101.59 -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 0.3750% -0.0039
5 YR 1.5391% +0.0098
10 YR 2.4750% +0.0071
30 YR 3.3253% -0.0033
Prices as of: 5/30/2014 4:32PM 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.
© 2014 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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Weekly Newsletter: Mortgage Rates Drop Abruptly, Approaching 4%; Only 2 in 5 Housing Markets are Improving; Home Price Appreciation has Peaked; Firm Fined For Steering

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weeklynewsletter.png
30 Year Fixed
4.12% +0.03
15 Year Fixed
3.26% +0.01
10YR Treasury
2.48% +0.0071
FNMA 30YR 3.5
102.97 +0.05
FNMA 15YR 2.5
103.94 +0.05
View Today’s Rates
Friday May 30, 2014
Mortgage Rate Watch – 5/28
Mortgage Rates Drop Abruptly; Now Approaching 4%
After tying the record for most consecutive days with no change, mortgage rates moved significantly lower today . The significance isn’t due to the size of the move–as far as day to …
MND NewsWire – 5/28
Only 2 in 5 Housing Markets are Improving -Freddie Mac
Freddie Mac’s new Multi-Indicator Market Index (MiMi) continues to show a weak housing market overall. The national MiMi value is flat compared to last month and has improved only slightly …
MND NewsWire – 5/27
Three Data Sets Concur on Continuing but Slower Price Increases
All three home price surveys released this morning showed prices increased in March, a more moderate improvement than in previous months in some cases, but still broad based. The S&P …
MND NewsWire – 5/29
Firm Fined for Steering Consumers to Affiliate Company
RealtySouth, the largest real estate firm in Alabama, was ordered to pay a half-million dollar penalty this week for failing to provide consumers with adequate transaction disclosures …

Latest Video


Robert Shiller: Mortgage rates may spur market

Santelli: Rally in Treasurys misunderstood

Home price gains ease

More News from ‘Around the Web’

32323959

Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.12% +0.03
15 Yr FRM 3.26% +0.01
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 3.93% +0.02
5/1 Yr ARM 3.24% +0.00

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.80% 1.10 +0.13
30 Yr. Fixed 4.67% 1.44 +0.13
MBA ** hdr_arrow.png
30 Yr. Fixed 4.31% 0.15 -0.02
15 Yr. Fixed 3.42% 0.06 -0.01
30 Yr. Jumbo 4.23% 0.16 -0.01
30 Yr. FHA 4.04% -0.45 -0.02
5/1 ARM 3.13% 0.19 -0.01
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 4.12% 0.60 -0.02
15 Yr. Fixed 3.21% 0.50 -0.04
1 Yr. ARM 2.41% 0.40 -0.02
5/1 Yr. ARM 2.96% 0.30 +0.00

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 98.91 +0.02
30YR FNMA 3.5 102.97 +0.05
30YR GNMA 3.0 100.66 +0.09
30YR GNMA 3.5 103.91 +0.06
15YR FNMA 3.0 103.94 +0.05
15YR FNMA 2.5 101.59 -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 0.3750% -0.0039
5 YR 1.5391% +0.0098
10 YR 2.4750% +0.0071
30 YR 3.3253% -0.0033
Prices as of: 5/30/2014 4:32PM 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.
© 2014 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031
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MBS RECAP: Bonds Manage to Consolidate Recent Weakness Rather Than Add to it

MBS RECAP: Bonds Manage to Consolidate Recent Weakness Rather Than Add to it

Posted to: MBS Commentary
Friday, May 30, 2014 4:57 PM

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

Today was a good test for MBS and Treasuries. It spoke volumes to the current state of play in bond markets: traders are afraid to get too short ahead of next week’s ECB Announcement (“getting short” equates to higher rates). Traders may also be afraid to get too short in general, simply because that decision is nearing Pavlovian levels of association with PAIN so far in 2014, but especially in the month of May.

Information on trader positioning becomes available in more detail after the fact. For instance, the most official report on trader positions is released on…

(READ THE FULL POST)

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Weekly Rate Report: Mortgage Rates Fall Further from 2014 Lows

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weeklyrateheader.png
30 Year Fixed
4.12% +0.03
15 Year Fixed
3.26% +0.01
10YR Treasury
2.48% +0.0071
FNMA 30YR 3.5
102.97 +0.05
FNMA 15YR 2.5
103.94 +0.05
View Today’s Rates
Mortgage Rates Fall Further from 2014 Lows
May 30, 2014
Market Summary
Mortgage rates were already at the best levels of the year last week, and they’d leveled off there by Friday. While that officially marked the end of a multi-week run, it turns out to have merely been a pause in the action before moving lower still this week.

In terms of the most prevalently quoted conforming 30yr fixed rate for ideal scenarios (best-execution), the week’s best levels briefly hit 4.0%, levels not seen since June 2013! Thursday and Friday saw a moderate pull-back, bringing the average back up to 4.125%.

Next week’s European Central Bank announcement is still in focus and still helping keep a lid on any aggressive moves higher in rate. In addition, trading in the markets that affect mortgage rates has grown increasingly intense on the approach to the potentially big news. The biggest risk for rates is that Europe doesn’t do as much as markets are expecting, because those expectations are a big factor in this week’s lows.

Matthew Graham, Chief Operating Officer, Mortgage News Daily

30 Year Fixed Rate Mortgage
30?w=360
Week in Review
Rates shown below are based on the 30 Year Fixed Rate Mortgage

Beginning Average: 4.16%
Ending Average: 4.12%
Weekly Change: -0.04%
Yearly Change: +0.18%

Friday, May 23, 2014 : 4.16% (+0.00%)
Mortgage rates didn’t budge today–not one little bit. It’s one thing for lenders to be adjusting rate sheets at various points in the day, beginning stronger, ending weaker, and ultimately averaging out to the same rates as the day before (as weas the case yesterday). It’s another thing altogether for every lender to come in the door at the exact same rates the next morning and stick with them all day long. That sort of complete absence of movement stands in sharp contrast to almost any other day spent watching markets and rates, hence the “sharply unchanged” descriptor in the title.

More detail: “Mortgage Rates Sharply Unchanged “

Tuesday, May 27, 2014 : 4.16% (+0.00%)
Mortgage rates were slightly higher this morning, but mid-day market improvements led many lenders to adjust rates lower into the afternoon. The net effect ends up being “no change” to Friday’s latest rate sheet offerings. While a return to unchanged levels isn’t unheard of, this is now the 5th day in row with the exact same average mortgage rate. That’s only happened one other time since we began keeping records in 2009. Simply put, rates have been extraordinarily sideways, and right in line with the lowest levels in 11 months.

More detail: “Mortgage Rates Close to Setting Sideways Record”

Wednesday, May 28, 2014 : 4.08% (-0.08%)
After tying the record for most consecutive days with no change, mortgage rates moved significantly lower today. The significance isn’t due to the size of the move–as far as day to day changes go, there have been bigger. Rather, the impressive part of today’s rally is that it occurred while rates were already effectively at the lowest levels in 11 months, further extending an already strong move lower over the past two months.

Through yesterday, rates had been giving the impression that the string of recent improvements was leveling-off and waiting for more important information on the horizon. In that context, today was an utter blindside. It wouldn’t have been as surprising if rates merely began drifting lower ahead of those key events. They sometimes do that after leveling-off in such a manner, but today was anything but a drift.

More detail: “Mortgage Rates Drop Abruptly; Now Approaching 4%”

Thursday, May 29, 2014 : 4.09% (+0.01%)
Mortgage rates began the day in even better shape than yesterday, but market volatility prompted most lenders to raise rates in the afternoon. That leaves today’s rate sheets in just slightly weaker territory compared to yesterday, but still better than any other day of the year. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) remains at least as low as 4.125%, with some lenders closer to 4.0%. Many borrowers will see today’s weakness in the form of higher closing costs vs yesterday. Expressed in terms of effective interest rates, the increase equates to 0.01%

More detail: “Mortgage Rates Slightly Higher After Mid-Day Volatility”

Friday, May 30, 2014 : 4.12% (+0.03%)
Mortgage rates continued slightly higher today. This had more to do with a market-based continuation of yesterday’s momentum than it did with any of today’s data and events. Lenders’ rate sheets are most directly affected by trading of Mortgage-Backed-Securities (MBS), which are part of the broader “Fixed-Income” or simply “bond markets.”

Trading in bond markets has recently grown more exciting than it had been from February through April. As May draws to a close, we can look back and see more clearly that much of the positivity was (and still is) a factor of expectations for the European Central Bank (ECB) to embark on some sort of asset buying program, similar to the Fed’s QE. The ECB is also expected to cut its policy rates.

More detail: “Mortgage Rates Slightly Higher from 2014 Lows; Big Week Ahead”

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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 4.12% +0.03
15 Yr FRM 3.26% +0.01
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 3.93% +0.02
5/1 Yr ARM 3.24% +0.00

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.80% 1.10 +0.13
30 Yr. Fixed 4.67% 1.44 +0.13
MBA ** hdr_arrow.png
30 Yr. Fixed 4.31% 0.15 -0.02
15 Yr. Fixed 3.42% 0.06 -0.01
30 Yr. Jumbo 4.23% 0.16 -0.01
30 Yr. FHA 4.04% -0.45 -0.02
5/1 ARM 3.13% 0.19 -0.01
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 4.12% 0.60 -0.02
15 Yr. Fixed 3.21% 0.50 -0.04
1 Yr. ARM 2.41% 0.40 -0.02
5/1 Yr. ARM 2.96% 0.30 +0.00

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 98.91 +0.02
30YR FNMA 3.5 102.97 +0.05
30YR GNMA 3.0 100.66 +0.09
30YR GNMA 3.5 103.91 +0.06
15YR FNMA 3.0 103.94 +0.05
15YR FNMA 2.5 101.59 -0.02
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Yield Change
Current MBS / Treasury Prices »
MBS and Treasury data provided by Thomson Reuters.
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2 YR 0.3750% -0.0039
5 YR 1.5391% +0.0098
10 YR 2.4750% +0.0071
30 YR 3.3253% -0.0033
Prices as of: 5/30/2014 4:32PM EST

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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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MBS MID-DAY: Bond Markets Resilient After Shaky Morning

MBS MID-DAY: Bond Markets Resilient After Shaky Morning

Posted to: MBS Commentary
Friday, May 30, 2014 12:10 PM

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After the strong move lower in rates through yesterday morning and a disconcertingly sharp pull-back yesterday, possibilities for today were diverse. It wouldn’t have been a surprise to see rates correct a bit higher or to move back toward yesterday’s lows, but neither of those extremes have shown up today.

Instead, we’re left with what is probably the most staid scenario where trading levels are simply orbiting around yesterday’s latest levels. With a low of 2.45 and a high of 2.49, the consolidation around the important 2.47 inflection point in 10yr yields borders on…

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Home Price Appreciation Has Peaked -Poll

Home Price Appreciation Has Peaked -Poll

Posted to: MND NewsWire
Friday, May 30, 2014 12:18 PM

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In a poll of 31 property analysts Reuters news agency found consensus that the growth of house prices in the U.S. has peaked and that further increases over the next two years will be more restrained. The analysts’ predictions centered on a median 7.5 percent increase this year and a gain of only 4.0 percent by 2016.

Reuters says this is a significant slowdown from the 12.4 percent jump in home values over the 12 months ended in March that was recently reported by the S&P/Case Shiller 20-City Composite Index. The rate of increase has recently slowed from that which occurred in the earlier months of that timeline.

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