by confoundedinterest17 Alarm! The real yield on U.S. 10-year debt fell to a record low as concerns mounted over the outlook for economic growth. The rate, which strips out inflation, fell almost six basis points to minus -1.269%. The move was compounded …
by confoundedinterest17 Talk about NIRP (negative interest rate policy). The Real 30-year mortgage rate (nominal rate – headline CPI YoY) has now fallen to -2.35%. While the REAL 30-year mortgage rate is at its lowest level since 1975 and President Gerald …
In today’s show, you will learn how the Fed could send 30-year mortgage rates down to one percent, why the Federal Funds Rate no longer matters, how Quantitative Easing and Tightening works, How overnight repurchase and reverse repurchase work, why …
by confoundedinterest17 Ain’t this a kick in the head. The job openings data was released this morning and we found out that 9.2 million jobs were added!! But at the same time, we saw DECLINE in labor force participation in last …
A Long Island man who hasn’t paid his mortgage in more than 20 years got another free pass from the courts this week after hiring a new lawyer. Guramrit Hanspal, 52, hasn’t coughed up a dime to live in his …
by confoundedinterest17 According to Freddie Mac, their mortgage survey rate for 30-year fixed-rate mortgages fell to 2.98%. And with rising inflation, the REAL mortgage rate (Freddie Mac 30-year survey rate – Core PCE Prices YoY) has dropped to -0.41%. At Tompall …
by confoundedinterest17 The spread between home price growth and wage earnings is back to the days of the US housing bubble that peaked in 2005. But this time it is different. The 2005 housing bubble was driven by shoddy credit and …
In today’s show, you will learn why the Fed thinks it is responsible for higher housing prices and what it might do to fix that, how investors are over leveraged, and how bonds and the dollar are signalling a risk-off …
by confoundedinterest17 The ramp-up in inflation with relatively low mortgage rates has resulted in NEGATIVE real 30-year mortgage rates. Once again, the lowest since 1975. The Federal Reserve chair was Arthur Burns and the President was Gerald Ford. The University of …
by confoundedinterest17 According to Freddie Mac, their 30-year mortgage survey rate rose to 3.02%, the highest since mid-March. Even though the benchmark 10-year Treasury Note yield is lower than it was in mid-March.
by confoundedinterest17 Mortgage Applications Increase in Latest MBA Weekly Survey Mortgage applications increased 2.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 18, 2021. The …
by confoundedinterest17 (Bloomberg) — Mortgage rates in the U.S. dropped to the lowest level in four months. The average for a 30-year loan was 2.93%, down from 2.96% last week and lowest since Feb. 18, Freddie Mac said Thursday. “Mortgage rates continue to drift down as …
by confoundedinterest17 Euphoria! US homebuilders have been euphoric about their prospects. Unfortunately, the recent report from the Mortgage Bankers Association (MBA) raises a few questions about sustainability of the housing boom. Mortgage purchase applications on a seasonally-adjusted basis peaked in January …
by confoundedinterest17 (Bloomberg) — Fewer homeowners are looking to refinance and mortgage securities investors are likely to benefit. The Mortgage Bankers Association refinance applications index dropped 7.2% in the latest report, its largest weekly decrease in three months. Looking ahead to next week’s prepayment speed report for May, …
by confoundedinterest17 As I observed earlier today, US home prices are skyrocketing due, in part, to the massively loose monetary policy. But if the housing market is on fire, why is The Federal Reserve continuing to support the mortgage market through Agency …
by Shaun Richards Today brings us up to date with what is now a year of the Bank of England going what can be called all in on monetary policy. We have seen its Bank Rate cut to 0.1% and …
by confoundedinterest17 Chairman Powell, tell me why The Federal Reserve is buying so much agency mortgage-backed securities (MBS) while there is a dearth of available housing inventory? Especially when home prices are growing at 12.2% year-over-year? Mortgage rates were already falling starting …
by confoundedinterest17 Mortgage applications increased 8.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 16, 2021. The Refinance Index increased 10 percent from the previous week and …
NEW YORK/WASHINGTON, April 19 (Reuters) – The U.S. consumer watchdog is scrutinizing mortgage servicers’ compliance with pandemic relief programs amid concerns struggling homeowners are not getting the help they need to avoid foreclosures, or are being discriminated against, said a …
by confoundedinterest17 The Federal Reserve is a natural born spread killer! (Bloomberg) — The tsunami of money and credit pouring into financial markets has washed away much of the available spread for mortgage bond investors. The Bloomberg Barclays U.S. MBS index option-adjusted spread fell to just 0.07% last …
by confoundedinterest17 Treasury managed to sell $24 BILLION in 30 year Treasury bonds. The high yield rate was 2.32%. The result? The 30Y-2Y Treasury slope declined along the the 10Y-2Y slope. Good news for the already blistering housing market.
from Kerry Lutz’s Financial Survival Network Debbie Bloyd notes that interest rates are rising for now, and asks what will the effect be? Buyers haven’t seemed to notice. One a $300k mortgage their payment has gone up $60-70 per month. Buyers need …
by confoundedinterest17 Mortgage applications decreased 5.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 2, 2021. The Refinance Index decreased 5 percent from the previous week …
by confoundedinterest17 Well, the data for pending home sales is for February (the dead of winter). But US pending home sales MoM fell -10.60% and -2.70% on a YoY basis. As mortgage rates start their long-predicted rise. Let’s hope that March …
by confoundedinterest17 Freddie Mac’s 30-year mortgage commitment rate keeps on rising. Now to 3.17%. This is happening at the 10-year Treasury yield continues to climb. Note that interest rate volatilty (SRVIX) surged and remains elevated compared to equity volatility (VIX). (Bloomberg) …
by confoundedinterest17 Mortgage applications decreased 2.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 19, 2021. The Refinance Index decreased 5 percent from the previous week …
by confoundedinterest17 I am not happy about rising mortgage rates and MBS duration. Freddie Mac just announced their 30-year mortgage rate … and it rose to 3.09%. But its the MBS modified adjusted duration that’s skyrocketing.
by confoundedinterest17 Freddie Mac’s survey of mortgage lenders (commitments) rose to 3.05% in today’s release. The spread between Freddie’s 30Y rate and the 10Y Treasury yield has been falling (bottom pane). Over a longer time frame, you can see that the …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter There is plenty of supply, but it’s the wrong supply, priced too high. Across the US, hot and cold housing markets all thrown into one bucket: Sales of “existing homes” (single-family houses, townhouses, condos, and co-ops) …
