MBS RECAP: Bonds Rally Amid Quiet Year-End Trading

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MBS RECAP: Bonds Rally Amid Quiet Year-End Trading

Posted to: MBS Commentary
Friday, December 29, 2017 3:58 PM

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There were no significant economic reports today, no major headlines, and no other events that prompted movement in bond markets. As is often the case on the last day of the year, there were just a handful of traders and computer programs making last minute adjustments to portfolios or engaging in opportunistic day trading.

Last week, imbalances among the dwindling population of traders resulted in bad times for bonds. This week, the opposite was true, thus leaving an imbalance of buyers to be magnified by light liquidity.

Buying demand (relative) was steady…

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Weekly Newsletter: Pending Sales Beat Expectations; Mortgage Lenders’ Biggest Fear: Other Mortgage Lenders

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30 Year Fixed
4.04% +0.00
15 Year Fixed
3.37% +0.00
10YR Treasury
2.41% -0.0287
FNMA 30YR 3.5
102.69 +0.16
FNMA 15YR 2.5
101.88 +0.13
View Today’s Rates
Friday December 29, 2017
MND NewsWire – 12/27
Mortgage Lenders’ Biggest Fear: Other Mortgage Lenders
Mortgage lenders continue to see a negative profit outlook for the first quarter of the New Year, the fifth consecutive quarter they have done so. Thirty-eight percent of respondents …
MND NewsWire – 12/27
Pending Home Sales See Slight November Gains
Pending home sales pulled off a second straight gain in November, but just barely . The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI), which is …
Mortgage Rate Watch – 12/27
Mortgage Rates Catch a Break After Last Week’s Rout
Mortgage rates had a bad week last week, quickly rising to the highest levels in months. To make matters more frustrating, there weren’t any clearly-delineated reasons for the rate …
Pipeline Press – 12/27
A Sampling of Vendor News, Tools, and Updates
Private education pays well. There were 58 people making over $1,000,000 per year in total compensation as the presidents of private, non-profit colleges in 2015, up from 39 in 2014 …

Latest Video


How the new tax law could affect your property value: NAR chief economist

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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 4.04% +0.00
15 Yr FRM 3.37% +0.00
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 4.19% +0.00
5/1 Yr ARM 3.20% -0.01

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 3.94% 0.50 +0.01
15 Yr. Fixed 3.38% 0.50 +0.02
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 3.39% 0.30 +0.03

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 100.00 +0.19
30YR FNMA 3.5 102.69 +0.16
30YR GNMA 3.0 100.78 -0.02
30YR GNMA 3.5 103.34 -0.02
15YR FNMA 3.0 101.88 +0.13
15YR FNMA 2.5 99.88 +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 1.8870% -0.0241
5 YR 2.2064% -0.0314
10 YR 2.4054% -0.0287
30 YR 2.7391% -0.0185
Prices as of: 12/29/2017 2:05PM 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.
© 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 Unchanged For 2nd Straight Day

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30 Year Fixed
4.04% +0.00
15 Year Fixed
3.37% +0.00
10YR Treasury
2.41% -0.0287
FNMA 30YR 3.5
102.73 +0.20
FNMA 15YR 2.5
101.91 +0.16
View Today’s Rates
Mortgage Rates Unchanged For 2nd Straight Day
December 29, 2017
Mortgage rates were unchanged again today, keeping them at the same stronger levels achieved on Wednesday afternoon. Wednesday’s gains were much-needed as they went a long way toward erasing the damage from a quick spike that took rates to the highest levels in months last week.

The caveat to the back-to-back weeks of volatility is that this is the end of December. Mortgage rates are driven primarily by trading in bond markets, and trading in bond markets becomes exceptionally sparse this time of year. In market speak, the word is “illiquid.” Imbalances between buyers and sellers always cause some movement, but illiquidity means that rates move much more than they otherwise would.

Thankfully, this week’s illiquidity worked in our favor, and rates returned to the dominant range of the third quarter of 2017. We could be waiting for the 2nd full week of January before we get a clear sense of how traders are approaching the bond market in 2018.


Today’s Most Prevalent Rates

  • 30YR FIXED – 4.0%-4.125%
  • FHA/VA – 3.75%
  • 15 YEAR FIXED – 3.375%-3.5%
  • 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
29?w=360
15 Year Fixed Rate Mortgage
29?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 4.04% +0.00
15 Yr FRM 3.37% +0.00
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 4.19% +0.00
5/1 Yr ARM 3.20% -0.01

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 3.94% 0.50 +0.01
15 Yr. Fixed 3.38% 0.50 +0.02
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 3.39% 0.30 +0.03

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 100.06 +0.25
30YR FNMA 3.5 102.73 +0.20
30YR GNMA 3.0 100.84 +0.05
30YR GNMA 3.5 103.39 +0.03
15YR FNMA 3.0 101.91 +0.16
15YR FNMA 2.5 99.91 +0.16
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 1.8870% -0.0241
5 YR 2.2064% -0.0314
10 YR 2.4054% -0.0287
30 YR 2.7391% -0.0185
Prices as of: 12/29/2017 2:05PM 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.

MBS Day Ahead: No Fireworks Expected For 2017’s Final Trading Day

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MBS Day Ahead: No Fireworks Expected For 2017’s Final Trading Day

Posted to: MBS Commentary
Friday, December 29, 2017 9:35 AM

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Markets will close early today (2pm ET for bonds), but most of 2017’s trading needs have long since been handled for most traders. Case in point, the list of corporate bond launches (something that tends to get at least a few new line items every day) has seen absolutely no activity since December 14th. Incidentally, my commentary from Friday the 15th said it was the “last call” for 2017 liquidity. It’s no coincidence that everything since then has looked far more volatile by comparison.

2017-12-29 open2

There are very few traders left to trade in this environment. Some account …

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Lender Wildfire Disaster Updates; Population Demographics Influencing Residential Lending

Lender Wildfire Disaster Updates; Population Demographics Influencing Residential Lending

Posted to: Pipeline Press
Friday, December 29, 2017 8:21 AM

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Age, population trends, and gender do matter in the home buying process. There, I said it. Someone in their early 20s probably can’t afford a 3,500-square foot home on 5 acres in Virginia with a stable, and someone in their 80s probably doesn’t want it anymore, or may want a cottage out back. Let’s look at some demographic stats that lenders should at least be aware of since they influence the lending business. The U.S. Census Bureau projects the U.S. population will be 327 million on Jan. 1, 2018. This represents an increase of 2,314,238, or 0.71 percent, from New Year’s Day 2017. If you really like numbers, the current rate is the United States experiencing one birth every 8 seconds and one death every 10 seconds.

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Daily Newsletter: Mortgage Rates Hold Steady Despite Market Weakness; How Tax Bill Could Affect Property Values

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dailynewsletter.png
30 Year Fixed
4.04% +0.00
15 Year Fixed
3.37% +0.00
10YR Treasury
2.43% +0.0216
FNMA 30YR 3.5
102.53 -0.11
FNMA 15YR 2.5
101.75 -0.03
View Today’s Rates
Thursday December 28, 2017
Mortgage Rate Watch – 5:03PM
Mortgage Rates Hold Steady Despite Market Weakness
Mortgage rates were broadly unchanged today, despite negative cues from underlying bond markets. In other words, the bonds that account for most mortgage rate movement suggested higher …
Pipeline Press – 10:05AM
New MBS Buyer; FHA, VA, PACE, Ginnie Updates; RBS California Settlement
For further evidence of the uneven recovery among U.S. housing markets , how’s this: In the 10 most expensive U.S. metropolitan areas, median home values have increased by 63 percent …
MBS Commentary – 6:01PM
MBS RECAP: Market Volatility Dying Down Again Before Another Long Weekend
Bond markets sent a fairly clear message today: don’t expect much tomorrow. Trading activity is dying down in the same sort of way it did last Thursday. In both cases, Tuesday and Wednesday …
MBS Commentary – 9:27AM
MBS Day Ahead: Only One More Thing to be Concerned About
With yesterday’s big rally out of the way (a correction to a correction in the yield curve, as discussed in yesterday’s close ), the most logical implication is for bond markets to …

Latest Video


How the new tax law could affect your property value: NAR chief economist

Santelli Exchange: The recipe for a steeper yield curve

Prepay property taxes? It’s complicated

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 4.04% +0.00
15 Yr FRM 3.37% +0.00
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 4.19% +0.00
5/1 Yr ARM 3.21% +0.01

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 3.94% 0.50 +0.01
15 Yr. Fixed 3.38% 0.50 +0.02
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 3.39% 0.30 +0.03

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 99.81 -0.14
30YR FNMA 3.5 102.53 -0.11
30YR GNMA 3.0 100.80 -0.11
30YR GNMA 3.5 103.36 +0.09
15YR FNMA 3.0 101.75 -0.03
15YR FNMA 2.5 99.75 -0.05
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 1.9111% +0.0161
5 YR 2.2378% +0.0427
10 YR 2.4341% +0.0216
30 YR 2.7576% +0.0092
Prices as of: 12/28/2017 5:06PM 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.
© 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: Market Volatility Dying Down Again Before Another Long Weekend

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MBS RECAP: Market Volatility Dying Down Again Before Another Long Weekend

Posted to: MBS Commentary
Thursday, December 28, 2017 6:01 PM

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Bond markets sent a fairly clear message today: don’t expect much tomorrow. Trading activity is dying down in the same sort of way it did last Thursday. In both cases, Tuesday and Wednesday saw big moves (exacerbated by illiquidity. In both cases, Thursday was markedly different and in both cases, there was a half-day on Friday and a full closure on the following Monday.

There’s one other similarity. In both cases, Thursday saw bonds move in the opposite direction when compared to the bigger move from the two preceding days. Since this week’s…

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