Daily Newsletter: Mortgage Rates Rise; Volatility Builds Throughout Week; Homebuilders Wait on Impact of NLRB Ruling

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30 Year Fixed
4.00% +0.02
15 Year Fixed
3.26% +0.01
10YR Treasury
2.21% +0.0284
FNMA 30YR 3.5
103.64 -0.13
FNMA 15YR 2.5
103.73 -0.05
View Today’s Rates
Monday August 31, 2015
Mortgage Rate Watch – 4:18PM
Mortgage Rates Rise; Volatility Builds Throughout Week
Mortgage rates moved moderately higher today as bond traders adjusted their holdings for the end of the month. Mortgage rates are dictated by trading levels of mortgage-backed securities …
MND NewsWire – 5:22PM
Homebuilders Waiting to See Impact of NLRB Ruling
A ruling last week from the National Labor Relations Board (NLRB) has sent many companies who rely on contract labor into a bit of a panic . While there is one school of thought that …
Pipeline Press – 9:20AM
CFPB news; Hispanic Influence Growing; Care and Training of Millennials; Rents are LOs Friend
Darned if I know how we’re at the end of August already, with kids are heading back to school and the NFL all over sports programs. One thing that August had was a ruling in the federal …
MBS Commentary – 1:35PM
MBS MID-DAY: Bonds Give up Gains After Heavy Selling in Europe
The day started off well for domestic bond markets as weakness in Asia translated to some safe-haven demand for US Treasuries. At the start of the domestic session, month-end buying …

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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 4.00% +0.02
15 Yr FRM 3.26% +0.01
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 3.82% +0.02
5/1 Yr ARM 3.00% +0.02

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.26% 1.25 -0.06
30 Yr. Fixed 3.90% 1.28 -0.03
MBA ** hdr_arrow.png
30 Yr. Fixed 4.11% 0.37 -0.02
15 Yr. Fixed 3.37% 0.36 -0.02
30 Yr. Jumbo 4.03% 0.29 -0.05
30 Yr. FHA 3.88% 0.17 -0.06
5/1 ARM 2.98% 0.40 -0.13
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 3.84% 0.60 -0.09
15 Yr. Fixed 3.06% 0.60 -0.09
1 Yr. ARM 2.62% 0.30 +0.00
5/1 Yr. ARM 2.90% 0.40 -0.04

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 100.45 -0.14
30YR FNMA 3.5 103.64 -0.13
30YR GNMA 3.0 101.31 -0.11
30YR GNMA 3.5 103.98 -0.09
15YR FNMA 3.0 103.73 -0.05
15YR FNMA 2.5 101.45 -0.08
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 0.7395% +0.0199
5 YR 1.5462% +0.0263
10 YR 2.2144% +0.0284
30 YR 2.9587% +0.0791
Prices as of: 8/31/2015 4:30PM 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 and terms are subject to change without notice.
© 2015 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; Volatility Builds Throughout Week

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dailyrateheader.png
30 Year Fixed
4.00% +0.02
15 Year Fixed
3.26% +0.01
10YR Treasury
2.21% +0.0284
FNMA 30YR 3.5
103.64 -0.13
FNMA 15YR 2.5
103.73 -0.05
View Today’s Rates
Mortgage Rates Rise; Volatility Builds Throughout Week
August 31, 2015
Mortgage rates moved moderately higher today as bond traders adjusted their holdings for the end of the month. Mortgage rates are dictated by trading levels of mortgage-backed securities (which in turn, tend to move in step with US Treasuries, generally speaking). Many traders are tasked with making certain trades by the end of the month. Sometimes that has a noticeable effect on how rates move, and today was one of those days.

Unfortunately, it wasn’t in a friendly direction. The day began with promise, however. In fact, many lenders were in better shape this morning vs Friday afternoon. But the market volatility began to take its toll as the PM hours approached, and virtually all lenders recalled initial rate sheets and moved higher.

In some cases, that will merely mean higher closing costs for yesterday’s prevailing rates. In other cases, borrowers could see rates move up by .125%. The most prevalently-quoted conventional 30yr fixed rate for top tier scenarios remains 4.0%, with slightly fewer lenders offering 3.875% today vs Friday.

Today’s mid-day changes could merely be a warning shot. The rest of the week stands the chance to be exceptionally volatile. The Fed placed a lot of emphasis on the next 2 weeks of economic data between now and their September meeting. The current week is certainly the biggest in terms of the scheduled data. Even though Fed rates don’t dictate mortgage rates, any major changes in the expectations for Fed action will affect the entire market. That means today could end up being one of the tamer days of the week by the end.


Loan Originator Perspective

“Both treasuries and MBS sold off this afternoon, and we’re hovering towards the top end of recent rates. It’s a big data week, with September’s NFP jobs report on Friday and significant economic news (ISM, ADP jobs report) earlier. The markets’ angst over China seems to have abated, and we’re now trading on actual data for a change. Bond markets are often hesitant to rally too much moving into NFP, I’ll be locking sooner rather than later as the week progresses.” –Ted Rood, Senior Originator

“So, as Fed rate hike talk picks up during a week that ends with the Jobs Report (our most important and potentially market moving economic report) I would be quite cautious. Risk has increased in my opinion so I would be locking at application most loans unless the time frame to closing was extended out past 60 days. Certainly we have room to move lower if the cards break in our favor but risk of floating far outweighs the certainty of locking at this point.” –Hugh W. Page, Mortgage Banker, SeacoastBank


Today’s Best-Execution Rates

  • 30YR FIXED – 3.875 – 4.0
  • FHA/VA – 3.75%
  • 15 YEAR FIXED – 3.125 – 3.25%
  • 5 YEAR ARMS – 2.75 – 3.25% depending on the lender


Ongoing Lock/Float Considerations

  • 2015 began with a strong move to the lowest rates seen since May 2013. The catalyst was Europe and the introduction of European quantitative easing. Investors bet heavily the move lower in European rates and domestic rates benefited as well. But with those bets finally drying up in April and with the Fed seemingly intent on hiking rates in the US, May and June saw a sharp move back toward higher rates. The implicit fear is that global interest rates set a long term low in April, and have now begun a major move higher.
  • July said “not so fast” to that potential “big bounce.” Some of the data began to suggest the Fed is still a bit too early in talking about raising rates in 2015–particularly, a lack of wage growth or any promising signs of inflation. But Fed proponents maintain that low inflation is a byproduct of temporary trends in the value of the dollar and the price of oil, and that once these factors level-off, inflation will ultimately return. That side of the argument suggests that inflation could increase too quickly if the Fed hasn’t already begun normalizing interest rates.
  • With all of the above in mind, locking made far more sense for the entirety of May and June, and we were not shy about saying so. The second half of July saw that conversation shift toward one where multiple outcomes could once again be entertained. In other words, we went from “duck and cover!” to “let’s see where this is going…”
  • Bottom line, locking is always the safest bet and it was the only bet from late April through early July. Since then, there’s been room for other points of view. We should know a lot more about how valid those points of view are as August and September progress.
  • As always, please keep in mind that the rates discussed generally refer to what we’ve termedbest-execution(that is, the most frequently quoted, conforming, conventional 30yr fixed rate for top tier borrowers, based not only on the outright price, but also ‘bang-for-the-buck.’ Generally speaking, our best-execution rate tends to connote no origination or discount points–though this can vary–and tends to predict Freddie Mac’s weekly survey with high accuracy. It’s safe to assume that our best-ex rate is the more timely and accurate of the two due to Freddie’s once-a-week polling method).

30 Year Fixed Rate Mortgage
31?w=360
15 Year Fixed Rate Mortgage
31?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 4.00% +0.02
15 Yr FRM 3.26% +0.01
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 3.82% +0.02
5/1 Yr ARM 3.00% +0.02

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.26% 1.25 -0.06
30 Yr. Fixed 3.90% 1.28 -0.03
MBA ** hdr_arrow.png
30 Yr. Fixed 4.11% 0.37 -0.02
15 Yr. Fixed 3.37% 0.36 -0.02
30 Yr. Jumbo 4.03% 0.29 -0.05
30 Yr. FHA 3.88% 0.17 -0.06
5/1 ARM 2.98% 0.40 -0.13
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 3.84% 0.60 -0.09
15 Yr. Fixed 3.06% 0.60 -0.09
1 Yr. ARM 2.62% 0.30 +0.00
5/1 Yr. ARM 2.90% 0.40 -0.04

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 100.45 -0.14
30YR FNMA 3.5 103.64 -0.13
30YR GNMA 3.0 101.31 -0.11
30YR GNMA 3.5 103.98 -0.09
15YR FNMA 3.0 103.73 -0.05
15YR FNMA 2.5 101.45 -0.08
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 0.7395% +0.0199
5 YR 1.5462% +0.0263
10 YR 2.2144% +0.0284
30 YR 2.9587% +0.0791
Prices as of: 8/31/2015 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.
© 2015 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 RECAP: Widespread Negative Reprices as Bonds End Month Weaker

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MBS RECAP: Widespread Negative Reprices as Bonds End Month Weaker

Posted to: MBS Commentary
Monday, August 31, 2015 5:21 PM

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Treasuries went out the ‘in’ door for the month of August, with today’s 3pm levels matching the opening levels from August 3rd (1st trading day of the month). MBS briefly traded near their August 3rd levels, but ended in noticeably weaker shape (MBS have been slowly but steadily underperforming Treasuries since QE3). By the end of the day, most lenders had repriced at least once.

Data was inconsequential this morning, as was most everything else for bond markets apart from month-end tradeflows. That was a benefit at first, but a significant detractor by the end of the…

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Homebuilders Waiting to See Impact of NLRB Ruling

Homebuilders Waiting to See Impact of NLRB Ruling

Posted to: MND NewsWire
Monday, August 31, 2015 4:24 PM

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A ruling last week from the National Labor Relations Board (NLRB) has sent many companies who rely on contract labor into a bit of a panic. While there is one school of thought that says the ruling may impact homebuilding, it is not clear that it would affect that traditional subcontractor relationship.

The ruling, the first of two that will probably come from the board, concerns Browning-Ferris Industries, a Milpitas, California recycling company. Browning-Ferris uses contract workers from a temporary staffing agency called Leadpoint. The Teamsters Union tried to organize Leadpoint’s employees but wanted the ability to also negotiate with Browning Ferris. Its rational was that collective borrowing would be more effective if it also included the larger company which actually has control over the employees’ working conditions. It asked NLRB to designate Browning-Ferris as a “joint employer.”

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MBS MID-DAY: Bonds Give up Gains After Heavy Selling in Europe

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MBS MID-DAY: Bonds Give up Gains After Heavy Selling in Europe

Posted to: MBS Commentary
Monday, August 31, 2015 1:35 PM

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The day started off well for domestic bond markets as weakness in Asia translated to some safe-haven demand for US Treasuries. At the start of the domestic session, month-end buying was evident. That means that certain traders were compelled to buy bonds in order to balance their portfolios for the end of the month.

Heading into the end of the European session, German Bunds sold-off aggressively, moving from .72 to .80 in just over an hour. By comparison, the 2.14 to 2.18 losses in US 10’s seem mild. MBS are yet another degree removed from the European influence…

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CFPB news; Hispanic Influence Growing; Care and Training of Millennials; Rents are LOs Friend

CFPB news; Hispanic Influence Growing; Care and Training of Millennials; Rents are LOs Friend

Posted to: Pipeline Press
Monday, August 31, 2015 8:16 AM

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Darned if I know how we’re at the end of August already, with kids are heading back to school and the NFL all over sports programs. One thing that August had was a ruling in the federal bankruptcy court in the Royal Bank of Canada versus Thornburg Mortgage case: RBC Capital Markets LLC has to pony up $45 million in damages for undervaluing assets it seized from Thornburg. And tongues are wagging about the settlement between the SEC and two units of Citigroup: no one at the bank was held accountable for behavior that caused investors to lose an estimated $2 billion! If no one at the SEC has the figure out “who done it”, maybe the CFPB will step in. (More on the CFPB below).

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MBS Day Ahead: Bonds Continue Seeking Same Middle Ground as Important NFP Approaches

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MBS Day Ahead: Bonds Continue Seeking Same Middle Ground as Important NFP Approaches

Posted to: MBS Commentary
Monday, August 31, 2015 8:51 AM

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Amid last week’s glut of Fed speeches surrounding the Jackson Hole symposium, Fed Vice Chair Fischer specifically called out “the next two weeks of data” as having a bearing on the Fed’s potential September rate hike. Incidentally, the first of those two weeks contains some of the most traditionally important data, including both ISM reports, ADP Employment, and the big daddy: NFP on Friday. Whether or not these reports ultimately sway the Fed’s decision remains to be seen, but after Fischer’s comments, markets are more on-guard for that than they otherwise might be.


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