Thankfully mortgage-backed bonds managed to close above the 200-day moving average on Friday afternoon. This morning mortgage-backed bonds have come under selling pressure. Watch today’s you tube video to find out what is impacting the bond market…… Search my February blog postings for an article-“Why Fed Rate Cuts Do Not Lower Mortgage Rates” for an […]
I got this email from an industry insider today. Although the email string doesn’t indicate who wrote the email apparently it is from a Fannie Mae official who tracks the investment communities’ demand for mortgage-backed bonds. Why is this important? This email explains in detail who the typical buyers are for mortgage-backed bonds and why […]
The volatility in this marketplace continues to be unprecedented and makes it extremely difficult to predict what will happen moving forward. Yesterday we recommended a floating position because we felt rates would improve due to mortgage-backed bonds possibly bouncing higher off the 200-day moving average & that the jobs report would be weak this morning. […]
This is an excellent explanation of what a margin call is and why it caused rates to rise yesterday written by Barry Habib, CEO of Mortgage Market Guide: So what happened yesterday? As we all know – only fools think that mortgage rates are based on the 10-year Note – many of them in the […]
For those of us familiar with the real estate sales process we know that it is very common for buyers to request that the seller pay all or a portion of their settlement charges. This reduces the amount of cash they have to bring to closing. Especially for first-time homebuyers who often do not have […]
We continue to track technical trading patterns today. After falling below the 100-day moving average mortgage backed bonds fell sharply to the 200-day moving average (indicated by the blue line) as we expected. If you’ll remember mortgage rates move inversely with the price of mortgage-backed bonds so as a result of the sell-off yesterday (indicated […]
Technical trading patterns seem to be the major influencer of mortgage rates this morning. Watch today’s you tube video to understand how this may impact mortgage rates over the next couple days.
There are a lot of important topics to cover this morning: *The mortgage industry is going through another round of credit tightening that will further restrict our ability to provide 100% financing. This time the tightening is being initiated by mortgage insurers. Watch today’s you tube video to understand who will be impacted. *Yesterday Fannie […]
This is pretty big news for our industry: http://online.wsj.com/article/SB120456185094007821.html?mod=hps_us_whats_news The article linked above indicates that we could see huge changes in the way property appraisals are conducted in the future. Essentially, Fannie Mae & Freddie Mac, who ultimately dictate guidelines for a majority of mortgage financing, are agreeing to change the way in which mortgages […]
We expect mortgage rates to drift higher this morning in response “Fed-speak”. If you’ll remember back to the middle of February it was Richard Fisher (Fed official) who criticized the recent cycle of Fed cuts as being soft on inflation. His comments in a speech he made in Mexico City caused mortgage backed bonds to […]