Daily Newsletter: Rates Approaching 5-Month Lows; High-Balance Guidelines Ease; MyCommunity is Back; Applications Decline

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30 Year Fixed
3.89% -0.01
15 Year Fixed
3.18% -0.01
10YR Treasury
2.04% -0.0158
FNMA 30YR 3.5
104.41 +0.17
FNMA 15YR 2.5
104.16 +0.09
View Today’s Rates
Wednesday September 30, 2015
Mortgage Rate Watch – 3:34PM
Mortgage Rates Approaching 5-Month Lows
Mortgage rates had another great day , with most lenders maintaining or improving upon yesterday’s 4-month lows. Given that we’d have to go back to May 8th, 2015 to see better rates …
MND NewsWire – 8:58AM
Major Loosening of High-Balance Conforming Standards; MyCommunity 2.0
Fannie Mae is initiating what it is calling an “enhanced affordable lending product it has named the HomeReady mortgage . The new loan is a reconfiguration of its My Community Mortgage …
MND NewsWire – 8:44AM
Mortgage Apps Decline
Application volumes fell even as interest rates were in a holding pattern during the week ended September 25. The Mortgage Bankers Association (MBA) said that mortgage applications …
Pipeline Press – 10:25AM
Cordray Speaks Out on TRID; Latinos, Household Growth, Culture, and The Housing Market
Do you have fewer competitors than you did a few years ago? A recent MBA Chart of the Week highlighted HMDA respondents and found that in 2014, 7,062 institutions reported lending activity …

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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 3.89% -0.01
15 Yr FRM 3.18% -0.01
FHA 30 Year Fixed 3.50% +0.00
Jumbo 30 Year Fixed 3.70% -0.01
5/1 Yr ARM 2.95% -0.01

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.49% 1.29 +0.13
30 Yr. Fixed 4.20% 1.45 +0.16
MBA ** hdr_arrow.png
30 Yr. Fixed 4.09% 0.45 +0.00
15 Yr. Fixed 3.31% 0.42 -0.02
30 Yr. Jumbo 3.99% 0.36 -0.05
30 Yr. FHA 3.88% 0.33 +0.00
5/1 ARM 2.95% 0.58 -0.09
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 3.86% 0.70 -0.05
15 Yr. Fixed 3.08% 0.60 -0.03
1 Yr. ARM 2.53% 0.20 -0.03
5/1 Yr. ARM 2.91% 0.50 -0.01

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 101.45 +0.22
30YR FNMA 3.5 104.41 +0.17
30YR GNMA 3.0 102.13 +0.17
30YR GNMA 3.5 104.69 +0.17
15YR FNMA 3.0 104.16 +0.09
15YR FNMA 2.5 102.00 +0.11
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 0.6368% -0.0158
5 YR 1.3653% -0.0211
10 YR 2.0438% -0.0158
30 YR 2.8601% +0.0008
Prices as of: 9/30/2015 4:31PM 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 Approaching 5-Month Lows

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dailyrateheader.png
30 Year Fixed
3.89% -0.01
15 Year Fixed
3.18% -0.01
10YR Treasury
2.04% -0.0158
FNMA 30YR 3.5
104.41 +0.17
FNMA 15YR 2.5
104.16 +0.09
View Today’s Rates
Mortgage Rates Approaching 5-Month Lows
September 30, 2015
Mortgage rates had another great day, with most lenders maintaining or improving upon yesterday’s 4-month lows. Given that we’d have to go back to May 8th, 2015 to see better rates, we’re very close to ‘5-month lows.’ In terms of top tier conventional 30yr fixed rate quotes, 3.875% remains most prevalent. A growing number of lenders are quoting 3.75% and only a few remain up at 4.0%. Not all borrowers will see a change in their quoted rate over the past few days, but in those cases, the closing costs would be lower or the lender credit would be higher.

Although there was a reasonable chance that we’d see increased volatility in the markets that underlie mortgage rates today, trading remained calm and positive. Stock prices and bond yields continued to diverge. This could have something to do with the way investors approached the end of the month and quarter. In other words, the volatility that was a risk today, could instead simply be waiting for the new month/quarter tomorrow. In any event, Friday’s big jobs report always has the potential to send rates quickly in either direction. While that does mean there could be further improvement for those willing to roll the dice on the economic data, it’s hard to argue against taking that risk off the table with rates near 5-month lows.


Loan Originator Perspective

“Once again, month end bond buying has been good for mortgage rates. We are a pretty much at the best levels since May! Lock the lows, float the highs. I favor locking everything up today closing within 30 days. Non farm payrolls hits on Friday, so I am expecting some weakness tomorrow ahead of that report. ” –Victor Burek, Churchill Mortgage

“Bond markets continued to hang tough today, posting small gains, and loan pricing improved slightly. It is refreshing to not see a 4 day pre-NFP selloff, as we sometimes do. Tomorrow will be the litmus test for this market, as month end buying will no longer be a factor. With pricing as strong as it is, I have to consider locking floating loans, particularly if they are within 30 days of closing. While we’re at the bottom of our recent range today, we haven’t definitively broken it, and until we do, floating seems like a high risk/low reward proposition.” –Ted Rood, Senior Originator


Today’s Best-Execution Rates

  • 30YR FIXED – 3.875
  • FHA/VA – 3.5 – 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…” Even the Fed took a similar stance when it held off raising rates when it had an excellent opportunity to do so in September’s meeting.
  • 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
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 3.89% -0.01
15 Yr FRM 3.18% -0.01
FHA 30 Year Fixed 3.50% +0.00
Jumbo 30 Year Fixed 3.70% -0.01
5/1 Yr ARM 2.95% -0.01

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.49% 1.29 +0.13
30 Yr. Fixed 4.20% 1.45 +0.16
MBA ** hdr_arrow.png
30 Yr. Fixed 4.09% 0.45 +0.00
15 Yr. Fixed 3.31% 0.42 -0.02
30 Yr. Jumbo 3.99% 0.36 -0.05
30 Yr. FHA 3.88% 0.33 +0.00
5/1 ARM 2.95% 0.58 -0.09
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 3.86% 0.70 -0.05
15 Yr. Fixed 3.08% 0.60 -0.03
1 Yr. ARM 2.53% 0.20 -0.03
5/1 Yr. ARM 2.91% 0.50 -0.01

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 101.45 +0.22
30YR FNMA 3.5 104.41 +0.17
30YR GNMA 3.0 102.13 +0.17
30YR GNMA 3.5 104.69 +0.17
15YR FNMA 3.0 104.16 +0.09
15YR FNMA 2.5 102.00 +0.11
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 0.6368% -0.0158
5 YR 1.3653% -0.0211
10 YR 2.0438% -0.0158
30 YR 2.8601% +0.0008
Prices as of: 9/30/2015 4:31PM 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: Bonds End Month at Best Levels

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MBS RECAP: Bonds End Month at Best Levels

Posted to: MBS Commentary
Wednesday, September 30, 2015 5:21 PM

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In day-over-day terms, the 1-2bps gain in 10yr yields and the 3-5 ticks improvement in MBS prices don’t seem overly impressive. But if we consider that each of the past 3 days has seen 10yr yields close at the best levels of the month, it’s a bit more interesting. Bonds haven’t ended a month with yields this low since April.

This wasn’t necessarily a given from the outset today. While stocks and bonds don’t necessarily HAVE TO follow each other, they’ve been sticking pretty close during the month. So there was some pressure from that “risk-on” trading stance (buy …

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MBS MID-DAY: Bonds Basking in Month-End Glow

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MBS MID-DAY: Bonds Basking in Month-End Glow

Posted to: MBS Commentary
Wednesday, September 30, 2015 1:13 PM

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The overnight session began with bond markets moving into weaker territory against the backdrop of a recovery in equities. There was clearly a lot of month-end buying yesterday, so it was fair to wonder if the sponsorship would wane today. In other words, certain investors are forced to buy a certain amount of bonds heading into the end of the month. They can do this any time before the end of the month, but usually have to make adjustments in the last few days in any event. Yesterday’s trading patterns suggested that month-end buying was prevalent, so there was…

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Cordray Speaks Out on TRID; Latinos, Household Growth, Culture, and The Housing Market

Cordray Speaks Out on TRID; Latinos, Household Growth, Culture, and The Housing Market

Posted to: Pipeline Press
Wednesday, September 30, 2015 8:29 AM

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Do you have fewer competitors than you did a few years ago? A recent MBA Chart of the Week highlighted HMDA respondents and found that in 2014, 7,062 institutions reported lending activity under HMDA, down from 7,190 lenders in 2013. The decline in HMDA reporting is due to a drop in the number of both depositories and non-depositories. But check this out: the share of the purchase market for non-depositories has increased from 27 percent of purchase originations in 2008 to 46 percent in 2014. The big banks are seeing a bit of a rebound in this. And the number of credit unions reporting mortgage activity under HMDA also declined but had modest gains in purchase share.

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Major Loosening of High-Balance Conforming Standards; MyCommunity 2.0

Major Loosening of High-Balance Conforming Standards; MyCommunity 2.0

Posted to: MND NewsWire
Wednesday, September 30, 2015 8:31 AM

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Fannie Mae is initiating what it is calling an “enhanced affordable lending product it has named the HomeReady mortgage. The new loan is a reconfiguration of its My Community Mortgage (MCM) which it brought on line in 2001 but which has gradually morphed, from an underwriting standpoint, into a more traditional kind of loan.

The company says it has taken MCM and redesigned and enhanced it, targeting the loans to low-to moderate-income borrowers and buyers in designated low-income, minority, and disaster-impacted communities. The HomeReady mortgage is a standard product available to all Fannie Mae lenders with no special approvals required.

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Mortgage Apps Decline

Mortgage Apps Decline

Posted to: MND NewsWire
Wednesday, September 30, 2015 6:30 AM

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Application volumes fell even as interest rates were in a holding pattern during the week ended September 25. The Mortgage Bankers Association (MBA) said that mortgage applications as measured by its Market Composite Index decreased during the week by 6.7 percent on a seasonally adjusted basis and 7 percent unadjusted.

The Refinance Index was down 8 percent from the week ended September 18 and the refinancing share of all applications fell slightly from 58.4 percent to 58.0 percent. Both seasonally adjusted and unadjusted Purchase Indices were down 6.0 percent but the unadjusted index remained 20 percent higher than during the same week in 2014.

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