Daily Newsletter: Fannie’s Eases Debt-to-Income Requirements; Pending Sales Fall; Selling is Costly; Rates Near 2-Week Lows

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30 Year Fixed
4.00% -0.02
15 Year Fixed
3.26% -0.02
10YR Treasury
2.21% -0.0017
FNMA 30YR 3.5
103.22 -0.02
FNMA 15YR 2.5
103.09 -0.02
View Today’s Rates
Wednesday May 31, 2017
MND NewsWire – 11:01AM
New DU Version Eases DTI Requirements
Fannie Mae has announced changes in underwriting for loans submitted to its Desktop Underwriter (DU), Version 10.1. The new DU version will be implemented on or after the weekend of …
MND NewsWire – 10:15AM
Pending Home Sales Fall Below 2016 Levels
Pending home sales had been expected to rise slightly in April after declining 0.8 percent in March. Instead, the National Association of Realtors’® (NAR’s) Pending Home Sale Index …
MND NewsWire – 11:49AM
Selling a Home Costs Money Too
Several entities that wonder about such things have commented recently on the apparent reluctance of homeowners to sell their homes. Historically Americans have tended to buy their …
Mortgage Rate Watch – 4:57PM
Rates Near 2-Week Lows as Risks Increase
Mortgage rates improved modestly today as lenders caught up with yesterday afternoon’s market movements. Most lenders will issue mid-day changes in rate sheets (“reprices”) when bond …

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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% -0.02
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 4.29% -0.01
5/1 Yr ARM 3.08% -0.01

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.06% 1.30 +0.03
30 Yr. Fixed 3.76% 1.38 +0.03
MBA ** hdr_arrow.png
30 Yr. Fixed 4.41% 0.38 +0.13
15 Yr. Fixed 3.64% 0.34 +0.12
30 Yr. Jumbo 4.36% 0.26 +0.07
30 Yr. FHA 4.15% 0.29 +0.13
5/1 ARM 3.45% 0.26 +0.17
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 3.95% 0.50 -0.07
15 Yr. Fixed 3.19% 0.50 -0.08
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 3.07% 0.40 -0.06

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 100.45 -0.03
30YR FNMA 3.5 103.22 -0.02
30YR GNMA 3.0 101.83 -0.02
30YR GNMA 3.5 104.23 -0.06
15YR FNMA 3.0 103.09 -0.02
15YR FNMA 2.5 100.97 0.00
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 1.2858% +0.0001
5 YR 1.7533% -0.0032
10 YR 2.2063% -0.0017
30 YR 2.8664% -0.0108
Prices as of: 5/31/2017 5:05PM 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.
© 2017 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031
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MBS RECAP: Unchanged Again; Modest Intraday Volatility

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MBS RECAP: Unchanged Again; Modest Intraday Volatility

Posted to: MBS Commentary
Wednesday, May 31, 2017 5:27 PM

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If we simply consider the close-of-the-day trading levels in bond markets, today was “unchanged.” The intraday activity tells only a slightly more detailed story. Treasuries were weaker in the overnight session and never showed much of a desire to overcome that plight until the 9:30am NYSE open. This is highly suggestive/supportive of “month-end tradeflows” driving much of the momentum.

Today even provided another interesting way to confirm the “month-end” theory. At 9:45am, Chicago PMI came out much weaker than expected. You would have been within your…

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Daily Rate Update: Rates Near 2-Week Lows as Risks Increase

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30 Year Fixed
4.00% -0.02
15 Year Fixed
3.26% -0.02
10YR Treasury
2.21% -0.0017
FNMA 30YR 3.5
103.22 -0.02
FNMA 15YR 2.5
103.09 -0.02
View Today’s Rates
Rates Near 2-Week Lows as Risks Increase
May 31, 2017
Mortgage rates improved modestly today as lenders caught up with yesterday afternoon’s market movements. Most lenders will issue mid-day changes in rate sheets (“reprices”) when bond markets make a big enough move in one direction or the other during the day. Sometimes, this movement doesn’t happen until the afternoon hours (which was the case yesterday). A handful of lenders responded with rate sheet improvements, but most simply waited for this morning.

The net improvement isn’t huge, by any means. In fact, most prospective borrowers may see the exact same quote as yesterday. But on average, the combination of rates and upfront costs is at its best level since May 18th. Specifically, 3.875-4.125% is the prevailing range, with most lenders quoting 4.0% on top tier 30yr fixed scenarios.

The next 2 days bring the week’s most important economic data and thus, more potential for market movement. Rates have generally been low and flat for 2 weeks now. That’s the sort of pattern that typically precedes a bigger move, for better or worse.


Loan Originator Perspective

Not an easy call today in my opinion. We’re at or very near the best levels in over 6 months. Month end trade flows may have helped push us to these levels but tomorrow is the 1st so don’t count on any more help from that phenomenon. We have the arguably important ADP report due out pre-market tomorrow and then ISM at 10am (before most rate sheets). That’s tons of potential market moving stuff going off before we see a rate sheet with a June 1st date on it. I can’t blame anyone from locking these levels. -Jason Anker – Sr. Loan Officer

Bonds look to close out May at the best levels in about a month. It is rather common for bonds to rally going into month end due to investors re-balancing their portfolios which can lead to a pull back when the next month begins. Majority of my clients are choosing to lock in today and take advantage of the recent gains on rate sheets. I think this is a wise choice as tomorrow we can have a pull back for no apparent reason other than its a new month. –Victor Burek, Churchill Mortgage

Bonds have had a nice run the past 3 weeks, and MBS have improved 100 bps. Current pricing is as good as we’ve seen the past 7 months, and there appear to be limited inflation concerns. With that being said, month end buying is likely responsible for a portion of this week’s gains, and that changes tomorrow. Friday’s Jobs Situation report for May employment adds another dose of drama. If you float past today, be aware that pricing may suffer later this week. The trend, such as it is, remains our friend for the moment, but it’s more of a trickle than a flood towards lower rates. –Ted Rood, Senior Originator


Today’s Most Prevalent Rates

  • 30YR FIXED – 4.00%
  • FHA/VA – 3.75%
  • 15 YEAR FIXED – 3.25%
  • 5 YEAR ARMS – 2.75 – 3.25% depending on the lender


Ongoing Lock/Float Considerations

  • Investors were relatively convinced that the decades-long trend toward lower rates had been permanently reversed after Trump became president, but such a conclusion would require YEARS to truly confirm
  • Instead of continuing higher in 2017, rates instead formed a narrow, sideways range, and held inside until April. Investor perceptions are shifting such that fiscal reforms and other policy developments will need to live up to expectations in order to push rates higher. Geopolitical risks would also need to avoid flaring up (more than they already have)
  • For the first time since the election, we’re in a rate environment where you wouldn’t be crazy not to lock at every little opportunity/improvement. Until/unless it’s broken, the highest rates of early-2017 mark the ceiling, and we’re now waiting to see how much lower we can go from here.
  • Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to well-priced lenders. The rates generally assume little-to-no origination or discount except as noted when applicable. Rates appearing on this page are “effective rates” that take day-to-day changes in upfront costs into consideration.

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% -0.02
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 4.29% -0.01
5/1 Yr ARM 3.08% -0.01

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.06% 1.30 +0.03
30 Yr. Fixed 3.76% 1.38 +0.03
MBA ** hdr_arrow.png
30 Yr. Fixed 4.41% 0.38 +0.13
15 Yr. Fixed 3.64% 0.34 +0.12
30 Yr. Jumbo 4.36% 0.26 +0.07
30 Yr. FHA 4.15% 0.29 +0.13
5/1 ARM 3.45% 0.26 +0.17
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 3.95% 0.50 -0.07
15 Yr. Fixed 3.19% 0.50 -0.08
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 3.07% 0.40 -0.06

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 100.45 -0.03
30YR FNMA 3.5 103.22 -0.02
30YR GNMA 3.0 101.83 -0.02
30YR GNMA 3.5 104.23 -0.06
15YR FNMA 3.0 103.09 -0.02
15YR FNMA 2.5 100.97 0.00
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 1.2858% +0.0001
5 YR 1.7533% -0.0032
10 YR 2.2063% -0.0017
30 YR 2.8664% -0.0108
Prices as of: 5/31/2017 5:05PM 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.
© 2017 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.

Selling a Home Costs Money Too

Selling a Home Costs Money Too

Posted to: MND NewsWire
Wednesday, May 31, 2017 11:35 AM

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Several entities that wonder about such things have commented recently on the apparent reluctance of homeowners to sell their homes. Historically Americans have tended to buy their first home at a certain age, and move up into a newer, larger, better located, or more amenity laden home a few years later, and then perhaps move again to downsize or relocate to a more suitable place for retirement. Now, not only are they buying that first home later than their predecessors, but once settled in, they tend to stay there. This has had ramifications for potential buyers as inventories of existing homes for sale are at record lows.

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New DU Version Eases DTI Requirements

New DU Version Eases DTI Requirements

Posted to: MND NewsWire
Wednesday, May 31, 2017 10:55 AM

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Fannie Mae has announced changes in underwriting for loans submitted to its Desktop Underwriter (DU), Version 10.1. The new DU version will be implemented on or after the weekend of July 29. The changes are outlined in release notes issued on Tuesday and will apply to new loan casefiles submitted to DU on or after the weekend of July 29, 2017. Loan casefiles created in DU Version 10.0 and resubmitted after the weekend of July 29 will continue to be underwritten through DU Version 10.0.

Among the more significant changes accompanying the new version are the following.

  • The maximum allowable debt-to-income (DTI) ratio that can be submitted in DU will be 50%. For DTIs between 45 and 50 percent, certain additional compensating factors will no longer be required. Cases exceeding a 50 percent DTI will receive an “ineligible” recommendation.
  • The criteria that determines the documentation required to verify a self-employed borrower’s income will be updated and the number of DU loan casefiles eligible for the one year of personal and business tax return documentation requirements will increase.

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Pending Home Sales Fall Below 2016 Levels

Pending Home Sales Fall Below 2016 Levels

Posted to: MND NewsWire
Wednesday, May 31, 2017 10:00 AM

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Pending home sales had been expected to rise slightly in April after declining 0.8 percent in March. Instead, the National Association of Realtors’® (NAR’s) Pending Home Sale Index (PHSI) slumped for the second straight month, dropping 1.3 percent. The PHSI, based on contracts signed for existing home purchases, fell from 111.3 (revised from 111.4) in March to 109.8.

The April dip put the Index 3.3 percent below its level in April 2016. This was the first year-over-year decline since last December and the largest since the Index fell 7.1 percent in June 2014.

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MBS Day Ahead: Hoping to Build on Recent Strength With Uncertain Month-End Boost

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MBS Day Ahead: Hoping to Build on Recent Strength With Uncertain Month-End Boost

Posted to: MBS Commentary
Wednesday, May 31, 2017 9:05 AM

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In one of yesterday’s updates (THIS ONE, to be specific), we discussed the role that month-end bond buying was likely playing behind the scenes. Long story short, when we see bond market strength at the end of the month that doesn’t line up well with at least one of the normally correlated markets (Yen, stocks, European bonds, and others all take turns wearing this hat), it’s fair to assume that the compulsory month-end tradeflows are the key consideration.

I would go so far as to say it was yesterday’s driving force for bond gains, and that can raise questions about today’s…

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