RealEstateProfitCoach.com First video in the series by Bob Leonetti, the Real Estate Profit Coach, on how to get into the paper business, create seller financing, analyze paper deals, buy paper, buy notes, value notes, create paper and generally do all you need to do to make money with notes and paper.
Posted To: MBS Commentary
After yesterday’s massive QE3-inspired rally took production MBS to NEW ALL TIME HIGHS , it might seem a bit anticlimactic to wade through a relatively busy Friday of economic data. Indeed the critical factor in “the day ahead” (and probably even in the week ahead) has more to do with the day just passed. In other words, observing the tradeflow patterns and preferences in response to the MBS-specific QE3 is more interesting than the average economic release today. To set some sort of baseline, we’d say that we think markets did an extraordinarily good job of processing an epic day of transparency, communication, and utilization of policy tools. The announcement delivered on both of the market’s expectations in that it A) was open ended and B) extended the ZIRP verbiage. The fact that it neglected…(read more)
Posted To: MND NewsWire
The proportion of homeowners with negative or near equity in their homes declined in the second quarter of the year with 600,000 borrowers reaching a state of positive equity during the quarter making a total of 1.3 million so far this year. Negative equity refers to a mortgage with a balance greater than the value of the home. CoreLogic released a report Wednesday morning showing that 10.8 million homeowners, or 22.3 percent of those with a mortgage, were underwater at the end of the quarter, down from 11.4 million or 23.7 percent at the end of the first quarter. An additional 2.3 borrowers* were classed as near-negative with less than 5 percent equity in their home. Twenty-seven percent of all mortgaged homes nationwide had negative and near-negative equity mortgages at the end of the second…(read more)
Posted To: MBS Commentary
MBS Live : MBS Morning Market Summary After opening in slightly weaker territory, MBS moved back into the green to the tune of 2-3 ticks in Fannie 3.0s and 3.5s. This leaves MBS prices about mid-range to Friday’s “post-rally” time frame. There hasn’t been much by way of news to move markets and there’s been essentially no data. Volume is light , but obviously so is volatility. 10yr yields are off their weakest levels of the morning, helped along by news that the important German court vote on Wednesday could be delayed , but under ongoing pressure from several sources including the corporate bond market as well as the auction cycle and the FOMC Announcement later in the week. MBS Pricing Snapshot Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available…(read more)
Posted To: MBS Commentary
MBS Live : MBS Afternoon Market Summary How Green Was My Rally? Apparently not as green as it was… This morning’s gains took MBS into undisputed facemelter territory with Fannie 3.0s packing on more than a point of improvement from lows to highs. Even now, we’re still up nearly half a point on the day which is better than most ” up” days. But between now and then, there’s been no massive market moving event–nothing, in fact, to inform the weakness other than a characteristic lack of participation following Non-Farm Payrolls on a Friday afternoon. A case could be made for bond markets shying away from a more aggressive rally in light of the big-ticket events coming up next week. In this case, the technical stopping point for today’s rally makes decent sense. 1.61 was certainly on the radar…(read more)
Posted To: MND NewsWire
The American Bankers Association (ABA) has reminded its members and others in the industry that the next few months are critical to lenders because of an even dozen new rules and regulations that are pending. Comment periods are still open on some of the changes, affected parties need to be preparing to adapt to others, while some issues will require more time and discussion before any decisions are made Get out your calendars. September : Comments are due September 7 on two issues. The Federal Housing Finance Agency has voiced objections to proposals from the City of Chicago and two California communities to use eminent domain to seize performing mortgages and restructure them to reflect current market value of the collateral. FHFA is requesting input on its concerns. The second comment period…(read more)
Posted To: MBS Commentary
MBS Live : MBS Morning Market Summary Bond markets opened in weaker territory this morning after ECB Pres Mario Draghi was quoted as saying that ECB bond buying up to 3yr maturities does not constitute “state aid,” and therefore doesn’t violate the Euro Zone treaty, according to a leaked recording (apparently not intended for public consumption ). The “top secret” nature of the recording lost a good bit of its luster when he said the same thing again today. Add to that the fact that there’s really only one ECB governor that remains in stern opposition to the shorter duration buying and the prospects for some sort of ECB action on Thursday are good. That said, such prospects were already mostly priced in to the market and the running consensus already saw likely bond buys in shorter maturities…(read more)
Posted To: Mortgage Rate Watch
Mortgage rates moved slightly lower today reaching their best levels since early in the month after a speech from Fed President Bernanke in Jackson Hole. We’d note, however, that the improvements in rates weren’t a result of anything in the speech per se. Rather, the speech represented an unknown for markets–one which they were waiting on before making their next move. After it became clear that there were no surprises from Bernanke, bond market investors steadily bought lots of Treasuries and MBS (The Mortgage-Backed-Securities that most directly influence mortgage rates) filling required trading positions to close out the month of August. Unfortunately, the improvements in bond markets didn’t arrive early enough in the day to be of benefit to mortgage rates as much as they otherwise might…(read more)
Posted To: MBS Commentary
MBS Live : MBS Morning Market Summary After some morning weakness, bond markets were able to get back to relative flatness heading into Bernanke’s Jackson Hole speech, and pretty much ignored the morning’s other economic data. Bond markets were choppy within a range very briefly in the immediate wake of the speech, but soon resolved to the upside, taking MBS to new highs on the week and the highest prices for Fannie 3.0s since August 6th. 10yr yields broke yesterday’s resistance floor and even briefly made it into the 1.5′s in 10yr’s . Stocks dipped big initially and are now back to higher levels than before the speech. So for now, it looks as if Bernanke has done the miraculous job of appeasing both sides of the market. Either that, or both sides of the market were sidelined waiting for more…(read more)
Posted To: MND NewsWire
Pending home sales rose to the highest level in over two years last month according to the Pending Home Sales Index for July released by the National Association of Realtors® (NAR) this morning. The index was up 2.4 percent to 101.7 from 99.3 in June and was 12.4 percent higher than the 90.5 mark one year earlier. The Pending Home Sales Index is a forward-looking indicator based on home purchase contracts signed. The contracts are generally expected to close within two months of their signing. Pending Home Sales Lawrence Yun, NAR chief economist, said the index is at the highest level since April 2010, which was shortly before the closing deadline for the home buyer tax credit. “While the month-to-month movement has been uneven, more importantly we now have 15 consecutive months of year…(read more)
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