MBS RECAP: Bonds Dragged Into Danger Zone Ahead of Tax Vote

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MBS RECAP: Bonds Dragged Into Danger Zone Ahead of Tax Vote

Posted to: MBS Commentary
Thursday, November 30, 2017 4:55 PM

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As discussed in detail in the daily video on MBS Live, today’s bond market weakness was multifaceted, to say the least. But if we want to make the move higher in stocks and bond yields about one thing and one thing only, we can continue to talk about the prospects for the tax bill passing. In that regard, today’s big to-do was a change of heart from Senator McCain who previously said he wouldn’t vote for the bill. Now he will, and that gives the Senate enough votes to try to pass the thing tonight or tomorrow.

The rally in the stock market was more gradual and lasted…

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Daily Newsletter: Rates Hit 1-Month Highs; New Loan Limits Already at Risk; Production Expenses Hurt Lender Profits

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30 Year Fixed
4.03% +0.05
15 Year Fixed
3.35% +0.03
10YR Treasury
2.41% +0.0214
FNMA 30YR 3.5
102.53 -0.16
FNMA 15YR 2.5
101.88 -0.11
View Today’s Rates
Thursday November 30, 2017
Mortgage Rate Watch – 4:12PM
Mortgage Rates Hit 1-Month Highs
There are several news stories out today that reference LOWER rates this week. These all rely on stale survey data that failed to account for changes over the past 2 days. Mortgage …
MND NewsWire – 9:57AM
Are New Loan Limits Already At Risk?
The issue of Fannie Mae and Freddie Mac and their about-to-be-zero capital buffers has fallen off the radar in recent months, but apparently there is some movement behind the scenes …
MND NewsWire – 12:29PM
Loan Production Expenses Hurt Bank Profits
Mortgage bank profits declined in the third quarter of 2017 when compared to the second quarter, but remained substantially higher than in the two rather disastrous quarters that preceded …
MBS Commentary – 9:40AM
MBS Day Ahead: Bonds on Edge as Tax Vote Could Come At Any time
Bonds are beginning the day in roughly unchanged territory, but that’s not a good thing as far as the bigger picture is concerned. “Unchanged territory” means that yields are right …

Latest Video


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More News from ‘Around the Web’

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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 4.03% +0.05
15 Yr FRM 3.35% +0.03
FHA 30 Year Fixed 3.65% +0.05
Jumbo 30 Year Fixed 4.19% +0.03
5/1 Yr ARM 3.22% +0.02

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.45% 1.22 -0.02
30 Yr. Fixed 4.14% 1.32 -0.01
MBA ** hdr_arrow.png
30 Yr. Fixed 4.06% 0.38 -0.05
15 Yr. Fixed 3.34% 0.38 -0.02
30 Yr. Jumbo 3.96% 0.20 -0.04
30 Yr. FHA 3.98% 0.35 -0.04
5/1 ARM 3.14% 0.31 -0.12
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 3.90% 0.50 -0.05
15 Yr. Fixed 3.30% 0.50 -0.01
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 3.32% 0.30 +0.11

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 99.75 -0.19
30YR FNMA 3.5 102.53 -0.16
30YR GNMA 3.0 100.97 +0.02
30YR GNMA 3.5 103.61 +0.03
15YR FNMA 3.0 101.88 -0.11
15YR FNMA 2.5 99.80 -0.13
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 1.7860% +0.0201
5 YR 2.1391% +0.0332
10 YR 2.4096% +0.0214
30 YR 2.8284% +0.0047
Prices as of: 11/30/2017 4:55PM 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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Daily Rate Update: Mortgage Rates Hit 1-Month Highs

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dailyrateheader.png
30 Year Fixed
4.03% +0.05
15 Year Fixed
3.35% +0.03
10YR Treasury
2.41% +0.0250
FNMA 30YR 3.5
102.52 -0.17
FNMA 15YR 2.5
101.84 -0.14
View Today’s Rates
Mortgage Rates Hit 1-Month Highs
November 30, 2017
There are several news stories out today that reference LOWER rates this week. These all rely on stale survey data that failed to account for changes over the past 2 days.

Mortgage rates actually continued higher today at the same quicker pace seen yesterday. Due to the relatively narrow range during November, rates are now in line with their highest levels in more than a month whereas they were at 2-week lows just 2 days ago. The average lender is now quoting conventional 30yr fixed rates of 4.0% on top tier scenarios, with a few outliers at 3.875% and 4.125%. A few days ago, 3.875% was nearly as prevalent.

As we discussed yesterday, the potential tax bill has had a pretty consistent relationship with rates. To whatever extent it looks passable, rates have generally moved higher. Today was no exception as McCain, one of the few remaining GOP holdouts, said he’d now vote for the bill. The Senate plans to vote on the bill late tonight or tomorrow.

Today’s Most Prevalent Rates

  • 30YR FIXED – 4.0%
  • FHA/VA – 3.75%
  • 15 YEAR FIXED – 3.375%
  • 5 YEAR ARMS – 2.75 – 3.25% depending on the lender


Ongoing Lock/Float Considerations

  • 2017 had proven to be a relatively good year for mortgage rates despite widespread expectations for a stronger push higher after the presidential election in late 2016.
  • While rates remain low in absolute terms, they’ve moved higher in a more threatening way heading into the 4th quarter, relative to the stability and improvement seen earlier in 2017
  • The default stance for now is that this trend toward higher rates has the potential to continue. It will take more than a few great days here and there for that outlook to change.
  • For weeks, this bullet point had warned about recent stability inviting a bigger dose of volatility. That volatility is now here. As such, locking is generally the better choice until the volatility is clearly dying down.
  • 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
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 4.03% +0.05
15 Yr FRM 3.35% +0.03
FHA 30 Year Fixed 3.65% +0.05
Jumbo 30 Year Fixed 4.19% +0.03
5/1 Yr ARM 3.22% +0.02

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.45% 1.22 -0.02
30 Yr. Fixed 4.14% 1.32 -0.01
MBA ** hdr_arrow.png
30 Yr. Fixed 4.06% 0.38 -0.05
15 Yr. Fixed 3.34% 0.38 -0.02
30 Yr. Jumbo 3.96% 0.20 -0.04
30 Yr. FHA 3.98% 0.35 -0.04
5/1 ARM 3.14% 0.31 -0.12
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 3.90% 0.50 -0.05
15 Yr. Fixed 3.30% 0.50 -0.01
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 3.32% 0.30 +0.11

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 99.73 -0.20
30YR FNMA 3.5 102.52 -0.17
30YR GNMA 3.0 100.97 +0.02
30YR GNMA 3.5 103.59 +0.02
15YR FNMA 3.0 101.84 -0.14
15YR FNMA 2.5 99.78 -0.14
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 1.7860% +0.0201
5 YR 2.1408% +0.0349
10 YR 2.4132% +0.0250
30 YR 2.8300% +0.0063
Prices as of: 11/30/2017 4:53PM 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.

Loan Production Expenses Hurt Bank Profits

Loan Production Expenses Hurt Bank Profits

Posted to: MND NewsWire
Thursday, November 30, 2017 12:22 PM

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Mortgage bank profits declined in the third quarter of 2017 when compared to the second quarter, but remained substantially higher than in the two rather disastrous quarters that preceded it. The Mortgage Bankers Association (MBA) says that independent mortgage banks and mortgage subsidiaries of chartered banks reported a net gain of $929 on each loan they originated in the third quarter of 2017. Per loan profits reported for the second quarter were $1,122 as lower interest rates boosted loan volumes. Rising rates in late 2016 had driven volumes, especially refinancing, down and per loan production expenses up.

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Are New Loan Limits Already At Risk?

Are New Loan Limits Already At Risk?

Posted to: MND NewsWire
Thursday, November 30, 2017 8:37 AM

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The issue of Fannie Mae and Freddie Mac and their about-to-be-zero capital buffers has fallen off the radar in recent months, but apparently there is some movement behind the scenes. For the uninitiated, the two GSEs have, since 2012 when they again became profitable, been subject to a net worth sweep in which their profits, less a buffer, are paid to the U.S. Treasury as a dividend. Under a revised stock purchase agreement negotiated by the Federal Housing Finance Agency (FHFA) and Treasury, that buffer has been steadily decreasing and will reach zero at the end of this year.

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MBS Day Ahead: Bonds on Edge as Tax Vote Could Come At Any time

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MBS Day Ahead: Bonds on Edge as Tax Vote Could Come At Any time

Posted to: MBS Commentary
Thursday, November 30, 2017 9:40 AM

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Bonds are beginning the day in roughly unchanged territory, but that’s not a good thing as far as the bigger picture is concerned. “Unchanged territory” means that yields are right on the edge of a very long-term range. In fact, with the exception of failed breakout attempt in late October, 10yr yields have held under a ceiling of 2.42% since March!

It’s not just a ceiling that saw an isolated bounce either. The 2.4-2.42 zone has been attacked on multiple occasions–each time acting as support for an impressively resilient bond market in 2017. Now…

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Lender Survey of Issues; Servicing News and Primer – Values Matter

Lender Survey of Issues; Servicing News and Primer – Values Matter

Posted to: Pipeline Press
Thursday, November 30, 2017 8:43 AM

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In non-residential news, just because people have to eat doesn’t mean every grocery store chain thrives. There is chatter out there in the commercial sector that Southeastern Grocers (think Winn-Dixie, Bi-Lo, Harvey’s, Fresco y Mas) could be heading for a bankruptcy filing. The firm has a significant amount of debt maturing over the next two years: Supermarket News. Wells Fargo has about $1.5 trillion in servicing. But non-banks have certainly jumped convincingly into the top 10, with LoanCare, Lakeview, Quicken, PennyMac, and others. Wells and US Bancorp have recently seen some rare growth in mortgage servicing portfolios…

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