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Mortgage and Lending - The Federal Savings Bank/Lending in 50 states - NMLS # 109616

ARCHIVED BLOG POSTS

2009 

Supply Concerns Boost Mortgage Rates All the economic news released during the week indicated that future inflation concerns should be minimal. In addition, the Fed purchased more mortgage-backed securities (MBS) than in any prior week. Despite these favorable events, however, mortgage rates rose...
02/27/2009
MBS prices are down -2/32 (FNMA 30-yr 4.5 at 100.25), below the initial price level at +4/32.  Today's economic data had little impact. The Dow fell 120 points. Supply concerns pushed MBS prices lower during the week, and MBS prices ended about -21/32 lower than last week. Next week, the importan...
02/27/2009
MBS prices are flat (FNMA 30-yr 4.5 at 100.31), 1/32 above the initial price level. It was a very quiet session. January New Home Sales fell to an annualized rate of 309K units, below the consensus of 324K units, and a record low. Overall demand was moderate for the 7-yr Treasury auction, and for...
02/26/2009
MBS prices are down -15/32 (FNMA 30-yr 4.5 at 100.31), far below the initial price level at +2/32. Concerns about the large supply of debt needed to pay for all the government rescue programs hurt MBS and Treasury markets today. While foreign investor demand was strong for the 5-yr Treasury aucti...
02/25/2009
MBS prices are up 1/32 (FNMA 30-yr 4.5 at 100.94), above the initial price level at -1/32. No economic data came out today. It was a quiet session, ahead of major economic data, Fed testimony, and Treasury auctions later in the week. The stock market fell to the lowest level since 1997, but MBS m...
02/23/2009
Fears about the economy led to a stock market decline and pushed mortgage rates a little lower during the week. Even with Tuesday's passage of the new $787 billion stimulus plan, economic growth forecasts from Wall Street economists and from the Fed were revised lower. Wednesday, President Obama ...
02/20/2009
MBS prices are up +5/32 (FNMA 30-yr 4.5 at 100.91), below the initial price level at +11/32. MBS prices rose when the stock market moved lower and then gave back some of their gains when the stock market partly recovered. The CPI inflation data came in close to expectations and had little impact....
02/20/2009
President Obama yesterday announced the comprehensive $75 billion Homeowner Stability Initiative. Most relevant to mortgage origination is that borrowers with existing owner-occupied conforming loans owned or guaranteed by Fannie or Freddie will be eligible to refinance, even if the home's curren...
02/19/2009
The Stimulus Plan was signed into law by President Obama today. It contains a new tax credit for first-time homebuyers. Essentially, first-time homebuyers within certain income limits who purchase a home in 2009 before December 1, 2009 will receive a tax credit of up to $8,000. The program is sim...
02/17/2009
MBS prices are up +16/32 (FNMA 30-yr 4.5 at 101.12), above the initial price level at +9/32. Favorable repricing was seen. MBS markets gained as investors moved to relatively safer investments such as bonds. The Dow fell 300 points. Tomorrow, Housing Starts, Import Prices, and Industrial Producti...
02/17/2009
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