How Cash Sales Affect Mortgage Originations

The macroeconomic outlook remains remarkably stable. Real GDP grew 2.6 percent (SAAR) in the second quarter, but that jump in growth just compensated for the... More

from
http://www.freddiemac.com/research/outlook/20170817_mortgage_orientations.html?attr=rssCB

More 2017 Lows for Rates; More Trump Drama; Freddie to Automate Some Appraisals

Mortgage rates moved lower again. Drama surrounding the Trump administration was also present. But this time around, the political theater wasn't responsible for the move lower in rates. In fact, it resulted in multiple lenders adjusting rate sheets higher in the middle of the day. Fortunately, rates fell enough in the morning that the net result was still positive. The average lender is at new lows for 2017 (lowest since just after the November 2016 election, in fact). 3.875% is now the most prevalently-quoted conventional 30yr fixed rate for top tier scenarios, although quite a few lenders remain at 4.00%. Next week brings the normally-hotly-anticipated Jackson Hole symposium, but with monetary policy for both the Fed and the European Central Bank essentially an open book of late, market

from
http://www.mortgagenewsdaily.com/reports/newsletter/2017/8/18/2947

Rates and Politics; Rates and Affordability; Rates and Application Volume

Mortgage rates fell yesterday in response to a tweet about Trump disbanding his councils of CEOs. Twitter was in play again today . This time around it was Gary Cohn, Trump's economic advisor. Rather, it was rumors of Cohn's departure that sent financial markets into a tail-spin. Terror attacks in Spain may have played a supporting role. The net effect was heavy losses for stocks and solid gains for bonds. When bonds improve, rates fall . Mortgage lenders continue to be slow to pass along the gains in bond markets in general, but they're certainly passing them along. Multiple lenders issued positive reprices in the afternoon as bond markets rallied. Conventional 30yr fixed rates are increasingly being quoted at 3.875% as opposed to 4.0% on top tier scenarios. On average, rates are the lowest

from
http://www.mortgagenewsdaily.com/reports/newsletter/2017/8/17/2945

Rates Back to 2017 Lows on Trump Tweet; Pitiful Supply Dampening Sales; Construction Contracts

Mortgage rates dropped today after news broke (first rumors, then confirmation via Twitter) that President Trump was disbanding his councils of CEOs. The move apparently came in response to attrition among several CEOs following Trump's press conference on recent events in Charlottesville, VA. In not so many words, Trump disbanded the councils before any more CEOs had a chance to quit. Political turmoil-- especially that which appears "anti-business" in any way--always runs the risk of hurting stocks and helping bonds. That's exactly what happened today. "Helping bonds" in this context means higher demand for bonds among investors. Excess demand for bonds pushes rates lower. The market reaction to the Trump news overshadowed what was set to be the day's big-ticket event up to that point--the

from
http://www.mortgagenewsdaily.com/reports/newsletter/2017/8/16/2943

Rates Rising as North Korea Talks Baseball; Scary Landlord Merger; Nice Builder Confidence Bounce

Mortgage rates continued higher today as markets reacted to news that North Korea would tactically abstain from launching nuclear weapons at Guam because it was having such a good time watching the "foolish and stupid conduct of the Yankees." Perhaps Kim Jong Un is a Sox fan? Someone should tell him that series is over and that the Mets might not put up as much of a fight. Or perhaps "Yankees" referred to America in general. Either way, markets took solace in the absence of global nuclear war by buying stocks and selling bonds. Net selling pressure in bonds pushes rates higher . Strong economic data in the morning only added to bond market weakness. Fortunately, movement in rates continues to be muted by historical standards. Most consumers would still be seeing the same rates quoted today

from
http://www.mortgagenewsdaily.com/reports/newsletter/2017/8/15/2941

Housing Only "Feels" Unaffordable: Builder Labor Shortage; Rates Rise From Long-Term Lows

Housing, at least according to Freddie Mac vice president and chief economist Sean Becketti, isn't unaffordable. It just feels that way . Becketti, in a recent post on the company's Perspectives blog, says the media is full of headlines that decry the costs faced by homebuyers today. He cites several, including a recent one from Business Insider , "An affordable-housing shortage in the US is about to get worse," as an indication of how the current environment feels to most people, but he says, "Housing is at near-record affordability, and I can prove it." His proof is the Housing Affordability Index (HAI) developed by the National Association of Realtors (NAR). This is perhaps the most-widely-cited measure of housing affordability and is currently at record highs . This means, Becketti says

from
http://www.mortgagenewsdaily.com/reports/newsletter/2017/8/14/2939

More 2017 Lows for Rates; More Trump Drama; Freddie to Automate Some Appraisals

Mortgage rates moved lower again. Drama surrounding the Trump administration was also present. But this time around, the political theater wasn't responsible for the move lower in rates. In fact, it resulted in multiple lenders adjusting rate sheets higher in the middle of the day. Fortunately, rates fell enough in the morning that the net result was still positive. The average lender is at new lows for 2017 (lowest since just after the November 2016 election, in fact). 3.875% is now the most prevalently-quoted conventional 30yr fixed rate for top tier scenarios, although quite a few lenders remain at 4.00%. Next week brings the normally-hotly-anticipated Jackson Hole symposium, but with monetary policy for both the Fed and the European Central Bank essentially an open book of late, market

from
http://www.mortgagenewsdaily.com/reports/newsletter/2017/8/18/2947