MBS RECAP: Bonds Sneak Into September Unnoticed

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Posted to: MBS Commentary
Friday, August 31, 2018 5:36 PM

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August began with bond yields moving down from 3%, effectively keeping them in a sideways-to-slightly higher trend that arguably dates back to January. The trend may have taken a break in the spring as yields tested a move over 3.10%, but geopolitical considerations and trade tensions quickly caused traders to rethink it.

At times, the range has been as narrow as 2.82-2.88, which is also true for most of this week, and easily true for today. With rates operating so persistently in such a narrow range, there’s little to do but wait for a breakout. Otherwise, we’d just …

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• Mortgage Rate Watch: Mortgage Rates End Week Near Best Levels
• MND NewsWire: HomeReady: Several Big Advantages Over FHA
• MND NewsWire: Jumbo Loans Back in Style?
• MBS Commentary: MBS Day Ahead: Lowest Volatility Ever, or Close to It
• Pipeline Press: MI, Warehouse, and Broker Products; Mortgage Fraud Protection Trends

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Daily Newsletter: Jumbo Loans Back in Style?; Homeready vs FHA

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30 Year Fixed 4.65% -0.01 15 Year Fixed 4.15% -0.02 10YR Treasury 2.86% +0.0018 FNMA 30YR 3.5 99.41 +0.05 FNMA 15YR 2.5 99.39 +0.02 View Today’s Rates

Friday August 31, 2018 MND NewsWire – 11:11AM Jumbo Loans Back in Style? Taking out a mortgage with an origination balance higher than whatever the conventional loan limit was at the time used to be an expensive proposition. Home buyers and refinancers had … MND NewsWire – 4:37PM HomeReady: Several Big Advantages Over FHA Fannie Mae’s 3% down payment HomeReady program was rolled out in 2016. HomeReady has numerous advantages over FHA loans (historically the most common “low down payment” … MBS Commentary – 10:28AM MBS Day Ahead: Lowest Volatility Ever, or Close to It There are a few different ways to measure volatility in the bond market, but one of the simplest is via the average daily trading range. That particular metric is showing volatility … Mortgage Rate Watch – 5:17PM Mortgage Rates End Week Near Best Levels Mortgage rates caught a break to end a week that was otherwise spent moving higher. Although we did see a bit of improvement in underlying bond markets yesterday, lenders were still … MI, Warehouse, and Broker Products; Mortgage Fraud Protection Trends Freddie Mac Updates Selling Guide, Introduces New Product Latest Video Consumer sentiment index at 96.2 in August Chicago PMI at 63.6 in August Fed predictions and more market volatility ahead? More News from ‘Around the Web’ Calculated Risk Blog – 5:22PM Fannie Mae: Mortgage Serious Delinquency rate decreased in July, Lowest since Oct 2007 Reuters – 4:41PM U.S. says to move ahead with Mexico trade pact, keep talking with Canada Bloomberg – 1:33PM It’s Trump, Not Just the Fed, Driving the Short-Term Muni Frenzy eyeonhousing.org – 12:38PM Lot Size Remains Record Low http://www.realtor.com – 11:53AM The Neighborhood Names With the Highestand LowestHome Prices CNBC – 11:00AM Millennials put pets first when buying a home Bloomberg – 10:42AM Record London Rents Lure Overseas Landlords to House Market CNBC – 10:07AM Consumer sentiment hits 96.2 in August, vs. 95.5 estimate CNBC – 9:50AM The $1 billion price cut: Luxury real estate gets slashed Calculated Risk Blog – 9:22AM Hotels: Occupancy Rate Unchanged Year-over-Year Reuters – 8:43AM Canada, U.S. may not reach NAFTA deal within deadline: Globe and Mail Reuters – 8:24AM Juncker pledges to boost auto tariffs if Trump reneges on agreement Reuters – 8:05AM Bond yield curves flatten – except in Brexit Britain Bloomberg – 8:00AM UK House Prices Drop Most Since 2012 as BOE Raises Rates Today’s Rates Best Execution Rate Change Current Mortgage Rates » What are best-execution rates? 30 Yr FRM 4.65% -0.01 15 Yr FRM 4.15% -0.02 FHA 30 Year Fixed 4.37% -0.01 Jumbo 30 Year Fixed 4.33% -0.02 5/1 Yr ARM 3.98% -0.01 Average Mortgage Rates Rate Points Change FHFA * 15 Yr. Fixed 3.65% 1.14 +0.09 30 Yr. Fixed 4.19% 1.21 +0.02 MBA ** 30 Yr. Fixed 4.68% 0.46 -0.01 15 Yr. Fixed 4.12% 0.51 +0.05 30 Yr. Jumbo 4.55% 0.37 +0.00 30 Yr. FHA 4.69% 0.81 -0.04 5/1 ARM 3.83% 0.68 -0.10 Freddie Mac ** 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 4.52% 0.50 +0.01 15 Yr. Fixed 3.97% 0.50 -0.01 1 Yr. ARM 2.68% 0.20 +0.01 5/1 Yr. ARM 3.85% 0.30 +0.03 Secondary Markets MBS Price Change 30YR FNMA 3.0 96.64 -0.05 30YR FNMA 3.5 99.41 +0.05 30YR GNMA 3.0 97.81 +0.08 30YR GNMA 3.5 100.13 +0.03 15YR FNMA 3.0 99.39 +0.02 15YR FNMA 2.5 97.23 +0.05 Treasuries 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 2.6290% -0.0243 5 YR 2.7382% -0.0135 10 YR 2.8604% +0.0018 30 YR 3.0191% +0.0120 Prices as of: 8/31/2018 5:05PM EST

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. © 2018 Brown House Media, Inc. All rights reserved. Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031

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Weekly Newsletter: Freddie’s New Product; Jumbo Back in Style; Lenders Back in Black; NAR Sees Cooling

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30 Year Fixed 4.65% -0.01 15 Year Fixed 4.15% -0.02 10YR Treasury 2.86% +0.0018 FNMA 30YR 3.5 99.41 +0.05 FNMA 15YR 2.5 99.39 +0.02 View Today’s Rates

Friday August 31, 2018 MND NewsWire – 8/30 Freddie Mac Updates Selling Guide, Introduces New Product Freddie Mac will be consolidating two of its mortgage products into a single offering effective October 29, 2018. The company announced this and other changes to its Selling Guide in … MND NewsWire – 8/31 Jumbo Loans Back in Style? Taking out a mortgage with an origination balance higher than whatever the conventional loan limit was at the time used to be an expensive proposition. Home buyers and refinancers had … MND NewsWire – 8/29 NAR Sees Overheated Housing Market Starting to Cool Expectations weren’t particularly high for a solid July report on home purchase contracts, but today’s report from the National Association of Realtors® (NAR) didn’t meet even those … MND NewsWire – 8/28 Consumers Want More Online Mortgage Features The Fannie Mae’s National Housing Survey (NHS) polls a large panel of consumers monthly about their attitudes toward housing and related topics and generally reports on five or six … Freddie Sees 2 Big Problems For Housing Mortgage Applications Resume Downward Spiral Mortgage Rates End Week Near Best Levels HomeReady: Several Big Advantages Over FHA MBS Day Ahead: Lowest Volatility Ever, or Close to It Freddie Mac’s Portfolio up 3.2 Percent for Year Sun Belt has Lock on "Young" Housing Mortgage Lenders Back in Black After Earlier Losses Las Vegas Dethrones Seattle in Home Price Growth Wells Layoffs; Broker Product; Servicing Buyers and Sellers Wanted Latest Video Zillow: US won’t see a buyer’s market until 2020 Santelli Exchange: The yield curve as an indicator of future recessions The health of the housing market More News from ‘Around the Web’ http://www.realtor.com – 8/27 Flooding Risk Knocks $7 Billion Off Home Values, Study Finds Bloomberg – 8/27 Starter-Home Affordability Hits a Decade Low Reuters – 8/27 Markets may be signaling rising recession risk: Fed study Calculated Risk Blog – 8/27 Dallas Fed: "Robust Expansion in Texas Manufacturing Continues" Bloomberg – 8/27 Fed Hikes May Create Depressed, Not Inverted Yield Curve, Says Purves Reuters – 8/27 Turkey says wants to take relations with EU to a new phase Reuters – 8/27 Mexico-U.S. NAFTA agreement close, but item still pending: minister Calculated Risk Blog – 8/27 Chicago Fed "Index points to a moderation in economic growth in July" CNBC – 8/27 El-Erian sees a 60% chance that Trump’s hard line with China and Europe yields ‘fairer trade’ CNBC – 8/27 US Treasury yields lower after Fed’s Powell signals further rate rises Bloomberg – 8/27 Pimco’s Ivascyn Says Trade Tensions May Actually Benefit Economy Calculated Risk Blog – 8/28 Freddie Mac: Mortgage Serious Delinquency Rate Decreased in July Calculated Risk Blog – 8/28 Zillow Case-Shiller Forecast: Slower House Price Gains in July Reuters – 8/28 U.S. banking regulator kicks off rewrite of community lending rules CNN – 8/28 Where is the US housing market headed? 4 things you need to know CNBC – 8/28 Mnuchin says he’s ‘perfectly content’ with what many see as a red flag on the economy CNBC – 8/28 The Trump tax cuts were supposed to depress housing prices. They haven’t. Bloomberg – 8/28 Your Dovish Take on Powell Is Wrong, Goldman Tells Bond Traders Bloomberg – 8/28 Mnuchin Isn’t Worried About the Yield Curve Calculated Risk Blog – 8/28 Richmond Fed: "Fifth District Manufacturing Firms Reported Strong Growth in August" CNBC – 8/28 Consumer confidence hits 133.4 in August, vs. 126.7 estimate Reuters – 8/28 U.S. goods trade deficit rises as exports fall CNBC – 8/28 Goldman teams up with a real estate startup in push to make more home-improvement loans Reuters – 8/28 U.S., Mexico reach NAFTA deal, turn up pressure on Canada CNBC – 8/28 Chinese bonds just became more accessible to international investors Bloomberg – 8/28 Libor Challenger Embraced in Debut Commercial Paper Transaction Reuters – 8/24 S&P 500 reaches new high to clinch record bull run Reuters – 8/29 Trump says NAFTA talks with Canada likely to meet Friday deadline http://www.builderonline.com – 8/29 Is Home Price Growth Over? Reuters – 8/29 Big banks win dismissal in U.S. of bond rigging lawsuit CNBC – 8/29 The 4 most important things I wish I’d known before buying my first home Bloomberg – 8/29 How to Build a Sustainable Bond Portfolio CNBC – 8/29 Property experts see a 1-in-3 chance of a London house price crash CNBC – 8/29 Here are the most expensive ZIP codes for renters in the US Calculated Risk Blog – 8/29 Q2 GDP Revised up to 4.2% Annual Rate Bloomberg – 8/29 No Trades in Japan 10-Year Bonds Shows Limits of BOJ Tweaks Bloomberg – 8/29 Italy Reportedly May Reach Out to ECB on New Bond Purchase Plan CNBC – 8/29 Want to refinance your house? Keep these two points in mind CNBC – 8/30 Jimmy Carter says Trump administration is ignoring affordable-housing shortage Reuters – 8/30 Trump wants to move ahead with tariffs on Chinese imports worth $200 billion next week: Bloomberg CNBC – 8/30 EU to US: We will scrap auto trade tariffs if you do Reuters – 8/30 Atlanta Fed lowers U.S. third-quarter GDP view to 4.1 percent http://www.builderonline.com – 8/30 Here are the Most Expensive ZIP Codes for Renters in the U.S. eyeonhousing.org – 8/30 Mortgage Rates Flatten in July Calculated Risk Blog – 8/30 Personal Income increased 0.3% in July, Spending increased 0.4% Reuters – 8/30 U.S. weekly jobless claims rise, labor market still tightening Reuters – 8/30 As clock ticks, Canada and U.S seek ways to salvage NAFTA Reuters – 8/30 U.S. house prices to rise more than 6 percent this year, then slow: Reuters poll CNBC – 8/30 The Fed may finally see the change in inflation trend it’s been looking for Calculated Risk Blog – 8/31 Fannie Mae: Mortgage Serious Delinquency rate decreased in July, Lowest since Oct 2007 Reuters – 8/31 U.S. says to move ahead with Mexico trade pact, keep talking with Canada Bloomberg – 8/31 It’s Trump, Not Just the Fed, Driving the Short-Term Muni Frenzy eyeonhousing.org – 8/31 Lot Size Remains Record Low http://www.realtor.com – 8/31 The Neighborhood Names With the Highestand LowestHome Prices CNBC – 8/31 Millennials put pets first when buying a home Bloomberg – 8/31 Record London Rents Lure Overseas Landlords to House Market CNBC – 8/31 Consumer sentiment hits 96.2 in August, vs. 95.5 estimate CNBC – 8/31 The $1 billion price cut: Luxury real estate gets slashed Calculated Risk Blog – 8/31 Hotels: Occupancy Rate Unchanged Year-over-Year Reuters – 8/31 Canada, U.S. may not reach NAFTA deal within deadline: Globe and Mail Reuters – 8/31 Juncker pledges to boost auto tariffs if Trump reneges on agreement Reuters – 8/31 Bond yield curves flatten – except in Brexit Britain Bloomberg – 8/31 UK House Prices Drop Most Since 2012 as BOE Raises Rates Today’s Rates Best Execution Rate Change Current Mortgage Rates » What are best-execution rates? 30 Yr FRM 4.65% -0.01 15 Yr FRM 4.15% -0.02 FHA 30 Year Fixed 4.37% -0.01 Jumbo 30 Year Fixed 4.33% -0.02 5/1 Yr ARM 3.98% -0.01 Average Mortgage Rates Rate Points Change FHFA * 15 Yr. Fixed 3.65% 1.14 +0.09 30 Yr. Fixed 4.19% 1.21 +0.02 MBA ** 30 Yr. Fixed 4.68% 0.46 -0.01 15 Yr. Fixed 4.12% 0.51 +0.05 30 Yr. Jumbo 4.55% 0.37 +0.00 30 Yr. FHA 4.69% 0.81 -0.04 5/1 ARM 3.83% 0.68 -0.10 Freddie Mac ** 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 4.52% 0.50 +0.01 15 Yr. Fixed 3.97% 0.50 -0.01 1 Yr. ARM 2.68% 0.20 +0.01 5/1 Yr. ARM 3.85% 0.30 +0.03 Secondary Markets MBS Price Change 30YR FNMA 3.0 96.64 -0.05 30YR FNMA 3.5 99.41 +0.05 30YR GNMA 3.0 97.81 +0.08 30YR GNMA 3.5 100.13 +0.03 15YR FNMA 3.0 99.39 +0.02 15YR FNMA 2.5 97.23 +0.05 Treasuries 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 2.6290% -0.0243 5 YR 2.7382% -0.0135 10 YR 2.8604% +0.0018 30 YR 3.0191% +0.0120 Prices as of: 8/31/2018 5:05PM EST

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. © 2018 Brown House Media, Inc. All rights reserved. Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031

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Weekly Rate Report: Mortgage Rates Aren’t Really Moving

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30 Year Fixed 4.65% -0.01 15 Year Fixed 4.15% -0.02 10YR Treasury 2.86% +0.0018 FNMA 30YR 3.5 99.41 +0.05 FNMA 15YR 2.5 99.39 +0.02 View Today’s Rates

Mortgage Rates Aren’t Really Moving August 31, 2018 Market Summary Mortgage rates caught a break to end a week that was otherwise spent moving higher. Lenders were ultimately able to offer modest improvements that got Friday’s levels back in line with Monday’s. The catch is that Monday’s rates were still noticeably higher than those seen at the end of the previous week. The other catch is that “rates” as we tend to think about them actually aren’t moving at all! Rather, it’s the upfront costs (or credits) tied to whatever rate you’re being quoted. These upfront costs allow for finer tuning than the typical .125% gap between mortgage rate offerings. Monday is a bank holiday. Virtually every mortgage lender will be closed, and unable to process rate lock requests. Lenders will not be updating rate sheets until Tuesday. -Matt Graham, Mortgage News Daily 30 Year Fixed Rate Mortgage Week in Review Rates shown below are based on the 30 Year Fixed Rate Mortgage Beginning Average: 4.63% Ending Average: 4.65% Weekly Change: +0.02% Yearly Change: +0.73% Friday, August 24, 2018 : 4.63% (+0.01%) Mortgage rates began the day slightly higher. In fact, for several lenders, it was the biggest day-over-day move higher in more than 2 weeks. The key word here is “was.” Things quickly changed in the mid-morning hours after Fed Chair Jerome Powell delivered his opening address at the Jackson Hole Symposium. More detail: “Mortgage Rates Edge Higher, Then Lower” Monday, August 27, 2018 : 4.63% (+0.00%) Mortgage rates moved higher for some lenders and lower for others, depending on how that particular lender adjusted their rate sheets on Friday afternoon. While the bonds that underlie mortgage rates are moving constantly throughout the day, lenders want to see a certain amount of movement in any given direction before they go to the trouble of adjusting their mortgage rate offerings. Friday began with weaker bonds. Consequently the first mortgage rate sheets of the day were worse than Thursday’s (i.e. rates were higher). But bonds improved throughout the day–just enough for a handful of lenders to adjust rates lower. More detail: “Mortgage Rates Higher (or Lower) Depending on Lender” Tuesday, August 28, 2018 : 4.65% (+0.02%) Mortgage rates rose again today–this time more noticeably than yesterday–bringing them to the highest levels in more than 2 weeks. For most, however, that sounds a lot worse than it actually is. In fact, the interest rate at the top of a loan quote has a good chance of being the exact same as the any other time during the past 2 weeks. How does that work?! More detail: “Mortgage Rates Highest in More Than 2 Weeks” Wednesday, August 29, 2018 : 4.66% (+0.01%) Mortgage rates were just slightly higher again today, keeping them in line with the highest levels in about 3 weeks. The same caveat applies: we’re talking about “effective rates” (which factor in upfront lender costs) as opposed to “note rates” (the actual interest rate that most of us have in mind when discussing mortgage rates). In other words, most prospective borrowers are seeing the same old rate on any given day over the past 3 weeks, but the overall cost of financing, on average, would be highest today. More detail: “Mortgage Rates Edge Higher Again” Thursday, August 30, 2018 : 4.66% (+0.00%) Mortgage rates didn’t move at all, again today. There really hasn’t been any meaningful movement for more than 3 weeks. The same thing happened from late June through mid July. And if we broaden our definition of “sideways” just a bit, we can legitimately fit most of 2018 into the same conversation. Just about the only thing that’s interesting about recent rate movement is that it continues to keep us generally closer to the highest levels in 7 years. More detail: “Mortgage Rates: If You Like Boring, You're in Luck!” Friday, August 31, 2018 : 4.65% (-0.01%) Mortgage rates caught a break to end a week that was otherwise spent moving higher. Although we did see a bit of improvement in underlying bond markets yesterday, lenders were still getting rate sheets caught up with Wednesday afternoon’s bond market weakness. As such, we were left with a decent trading day but no improvement in rates. More detail: “Mortgage Rates End Week Near Best Levels” Co-branding this Report Enable co-branding to personalize this report with your business information here. Learn more about co-branding with NO competitor ads. Today’s Rates Best Execution Rate Change Current Mortgage Rates » What are best-execution rates? 30 Yr FRM 4.65% -0.01 15 Yr FRM 4.15% -0.02 FHA 30 Year Fixed 4.37% -0.01 Jumbo 30 Year Fixed 4.33% -0.02 5/1 Yr ARM 3.98% -0.01 Average Mortgage Rates Rate Points Change FHFA * 15 Yr. Fixed 3.65% 1.14 +0.09 30 Yr. Fixed 4.19% 1.21 +0.02 MBA ** 30 Yr. Fixed 4.68% 0.46 -0.01 15 Yr. Fixed 4.12% 0.51 +0.05 30 Yr. Jumbo 4.55% 0.37 +0.00 30 Yr. FHA 4.69% 0.81 -0.04 5/1 ARM 3.83% 0.68 -0.10 Freddie Mac ** 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 4.52% 0.50 +0.01 15 Yr. Fixed 3.97% 0.50 -0.01 1 Yr. ARM 2.68% 0.20 +0.01 5/1 Yr. ARM 3.85% 0.30 +0.03 Secondary Markets MBS Price Change 30YR FNMA 3.0 96.64 -0.05 30YR FNMA 3.5 99.41 +0.05 30YR GNMA 3.0 97.81 +0.08 30YR GNMA 3.5 100.13 +0.03 15YR FNMA 3.0 99.39 +0.02 15YR FNMA 2.5 97.23 +0.05 Treasuries 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 2.6290% -0.0243 5 YR 2.7382% -0.0135 10 YR 2.8604% +0.0018 30 YR 3.0191% +0.0120 Prices as of: 8/31/2018 5:05PM EST

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. © 2018 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 End Week Near Best Levels

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30 Year Fixed 4.65% -0.01 15 Year Fixed 4.15% -0.02 10YR Treasury 2.86% +0.0018 FNMA 30YR 3.5 99.41 +0.05 FNMA 15YR 2.5 99.39 +0.02 View Today’s Rates

Mortgage Rates End Week Near Best Levels August 31, 2018 Mortgage rates caught a break to end a week that was otherwise spent moving higher. Although we did see a bit of improvement in underlying bond markets yesterday, lenders were still getting rate sheets caught up with Wednesday afternoon’s bond market weakness. As such, we were left with a decent trading day but no improvement in rates. In order to see that improvement, we needed this morning to bring stronger trading levels and that’s exactly what it did. Lenders were consequently able to offer token improvements in the upfront costs attached to the same old rate quotes that have prevailed for weeks. In other words, bond markets aren’t moving enough for actual mortgage rates to change. Instead, movement is limited to the upfront costs (or credits) associated with any given loan–something that allows for finer tuning than the typical .125% gap between mortgage rate offerings. Monday is a bank holiday. Virtually every mortgage lender will be closed, and unable to process rate lock requests. Lenders will not be updating rate sheets until Tuesday. Loan Originator Perspective Bonds posted small gains today, as market participants headed for the exits early. September brings the potential for greater rate volatility, the trend (if any) is still not our friend. I’m locking new loans closing within 45 days. Happy Labor Day weekend, all. –Ted Rood, Senior Originator Today’s Most Prevalent Rates 30YR FIXED – 4.625-4.75 FHA/VA – 4.25-4.5% 15 YEAR FIXED – 4.125% 5 YEAR ARMS – 3.75-4.25% depending on the lender Ongoing Lock/Float Considerations Rates moved higher in a serious way due to several big-picture headwinds, including: the Fed’s rate hike outlook (and general policy tightening), the increased amount of Treasury issuance to pay for the tax bill (higher bond issuance = higher rates), and the possibility that fiscal stimulus results in higher growth/inflation. Despite those headwinds, the upward momentum in rates has cooled off heading into the summer months. This could merely be the eye of the storm, or it could end up being the moment where markets began to doubt that prevailing trends would continue. It makes sense to remain defensive (i.e. generally more lock-biased) because the headwinds mentioned above won’t die down quickly. Temporary corrections can be explained away, but it will take a big change in economic fundamentals or geopolitical risk for the big picture to change. While that doesn’t necessarily mean rates have to skyrocket, there’s a good chance it means rates will struggle to move much lower than early 2018 lows until more convincing motivation shows up. 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 15 Year Fixed Rate Mortgage Co-branding this Report Enable co-branding to personalize this report with your business information here. Learn more about co-branding with NO competitor ads. Today’s Rates Best Execution Rate Change Current Mortgage Rates » What are best-execution rates? 30 Yr FRM 4.65% -0.01 15 Yr FRM 4.15% -0.02 FHA 30 Year Fixed 4.37% -0.01 Jumbo 30 Year Fixed 4.33% -0.02 5/1 Yr ARM 3.98% -0.01 Average Mortgage Rates Rate Points Change FHFA * 15 Yr. Fixed 3.65% 1.14 +0.09 30 Yr. Fixed 4.19% 1.21 +0.02 MBA ** 30 Yr. Fixed 4.68% 0.46 -0.01 15 Yr. Fixed 4.12% 0.51 +0.05 30 Yr. Jumbo 4.55% 0.37 +0.00 30 Yr. FHA 4.69% 0.81 -0.04 5/1 ARM 3.83% 0.68 -0.10 Freddie Mac ** 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 4.52% 0.50 +0.01 15 Yr. Fixed 3.97% 0.50 -0.01 1 Yr. ARM 2.68% 0.20 +0.01 5/1 Yr. ARM 3.85% 0.30 +0.03 Secondary Markets MBS Price Change 30YR FNMA 3.0 96.64 -0.05 30YR FNMA 3.5 99.41 +0.05 30YR GNMA 3.0 97.81 +0.08 30YR GNMA 3.5 100.13 +0.03 15YR FNMA 3.0 99.39 +0.02 15YR FNMA 2.5 97.23 +0.05 Treasuries 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 2.6290% -0.0243 5 YR 2.7382% -0.0135 10 YR 2.8604% +0.0018 30 YR 3.0191% +0.0120 Prices as of: 8/31/2018 5:05PM EST

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.

© 2018 Brown House Media, Inc. All rights reserved. Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031

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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 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.

HomeReady: Several Big Advantages Over FHA

Posted to: MND NewsWire
Thursday, August 30, 2018 3:58 PM

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Fannie Mae’s 3% down payment HomeReady program was rolled out in 2016. HomeReady has numerous advantages over FHA loans (historically the most common “low down payment” option) and other conventional loans. We’ll compare them in this series. Today, let’s look at mortgage insurance costs:

No upfront mortgage insurance premium: While both HomeReady and FHA have low down payments (3% for HomeReady, 3.5% for FHA), FHA loans add an upfront mortgage insurance premium (UFMIP) of 1.75% of the amount borrowed to…

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More from MND:

• MND NewsWire: Jumbo Loans Back in Style?
• MBS Commentary: MBS Day Ahead: Lowest Volatility Ever, or Close to It
• Pipeline Press: MI, Warehouse, and Broker Products; Mortgage Fraud Protection Trends
• MBS Commentary: MBS RECAP: New Tariff News Helps Bonds Dig Into Range
• Mortgage Rate Watch: Mortgage Rates: If You Like Boring, You’re in Luck!

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Jumbo Loans Back in Style?

Posted to: MND NewsWire
Friday, August 31, 2018 10:39 AM

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Taking out a mortgage with an origination balance higher than whatever the conventional loan limit was at the time used to be an expensive proposition. Home buyers and refinancers had an incentive to do whatever they could – higher down payments, piggy back second mortgages – to get their loan under that conventional limit in order to reap the benefits of lower borrowing costs. However, as Archana Prahan writes in the CoreLogic Insights Blog, since mid-2013 a jumbo loan has had lower borrower costs than a conforming loan, currently defined as one with a balance at or under $453,100.

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More from MND:

• MBS Commentary: MBS Day Ahead: Lowest Volatility Ever, or Close to It
• Pipeline Press: MI, Warehouse, and Broker Products; Mortgage Fraud Protection Trends
• MBS Commentary: MBS RECAP: New Tariff News Helps Bonds Dig Into Range
• Mortgage Rate Watch: Mortgage Rates: If You Like Boring, You’re in Luck!
• MND NewsWire: Freddie Mac Updates Selling Guide, Introduces New Product

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Jumbo Loans Back in Style?

Posted to: MND NewsWire
Friday, August 31, 2018 10:39 AM

Forward this email: Send a copy of this story to someone you know that may want to read it.

Taking out a mortgage with an origination balance higher than whatever the conventional loan limit was at the time used to be an expensive proposition. Home buyers and refinancers had an incentive to do whatever they could – higher down payments, piggy back second mortgages – to get their loan under that conventional limit in order to reap the benefits of lower borrowing costs. However, as Archana Prahan writes in the CoreLogic Insights Blog, since mid-2013 a jumbo loan has had lower borrower costs than a conforming loan, currently defined as one with a balance at or under $453,100.

(READ THE FULL POST)

More from MND:

• MBS Commentary: MBS Day Ahead: Lowest Volatility Ever, or Close to It
• Pipeline Press: MI, Warehouse, and Broker Products; Mortgage Fraud Protection Trends
• MBS Commentary: MBS RECAP: New Tariff News Helps Bonds Dig Into Range
• Mortgage Rate Watch: Mortgage Rates: If You Like Boring, You’re in Luck!
• MND NewsWire: Freddie Mac Updates Selling Guide, Introduces New Product

If you have trouble viewing this email, you can read the full post at http://www.mortgagenewsdaily.com/08312018_mortgage_origination.asp

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MBS Day Ahead: Lowest Volatility Ever, or Close to It

Before you read it here, it was on MBS Live.

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Posted to: MBS Commentary
Friday, August 31, 2018 10:28 AM

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There are a few different ways to measure volatility in the bond market, but one of the simplest is via the average daily trading range. That particular metric is showing volatility in line with the lowest levels on record.

The lower volatility goes and the longer it stays there, the more likely we are to see a big move in rates. Many would argue that, because we’ve spent so much time moving toward higher rates during the past 2 years, that big move stands a good chance of being rate friendly.

The catch is that it could still take months before such a thing begins to…

(READ THE FULL POST)

More from MND:

• Pipeline Press: MI, Warehouse, and Broker Products; Mortgage Fraud Protection Trends
• MBS Commentary: MBS RECAP: New Tariff News Helps Bonds Dig Into Range
• Mortgage Rate Watch: Mortgage Rates: If You Like Boring, You’re in Luck!
• MND NewsWire: Freddie Mac Updates Selling Guide, Introduces New Product
• MND NewsWire: Freddie Mac’s Portfolio up 3.2 Percent for Year

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MI, Warehouse, and Broker Products; Mortgage Fraud Protection Trends

Posted to: Pipeline Press
Friday, August 31, 2018 8:20 AM

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“How can you make a comeback when you haven’t been anywhere?” It seems that 3D-printing is going places. NASA awarded five teams $100,000 in a 3D-Printed habitat competition. As the next step, the winners are required to 3D print a one-third-scale model of their design for a chance to win $2 million. And a Russian firm has announced commencement on the world’s largest 3D construction printer, capable of printing an entire six-story building before you can ask, “Where’s the inspector?” I am sure we could use them as polling places in this country.

(READ THE FULL POST)

More from MND:

• MBS Commentary: MBS RECAP: New Tariff News Helps Bonds Dig Into Range
• Mortgage Rate Watch: Mortgage Rates: If You Like Boring, You’re in Luck!
• MND NewsWire: Freddie Mac Updates Selling Guide, Introduces New Product
• MND NewsWire: Freddie Mac’s Portfolio up 3.2 Percent for Year
• Pipeline Press: DTC Product; CEO Events; Hedging Firms Making Moves

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