But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
The Lower End Of The Housing Market’s Outperforming The Higher End
The CoreLogic Index is a widely followed index of real estate values. Unlike the other major indices—like Case-Shiller or Radar Logic—CoreLogic separates distressed sales from non-distressed sales.
The ten-year bond had a tiny rally, with yields decreasing from 2.32% to 2.31%. Ginnie Mae TBAs rallied as well, rising from 104 10/32 to 104 17/32.
The Fannie Mae 3.5% TBA started the week at 103 12/32 and picked up 10 ticks to close at 103 22/32. Market participants may also be forecasting less volatility in interest rates. This benefits mortgage-backed securities.
The FOMC minutes drove bonds last week, although they didn’t really reveal all that much. The ten-year bond ended last week at 2.32% and picked up a basis point to close out at 2.31%.
Big agency REITs like Annaly (NLY) and American Capital Agency (AGNC) took the chance to deleverage their balance sheets after the warning in the spring of 2013.
The “elephant in the room” at the Fed is that rates need to return to more normal historical levels at some point. This will be in the context of a massive Fed balance sheet. This creates issues on many different levels.
Fannie Mae puts out a monthly National Housing Survey that measures consumers’ attitudes about housing and the economy. In many ways, it’s similar to the consumer confidence indices. However, the majority of the questions relate to real estate.
Ginnie Mae and the to-be-announced market The Fannie Mae to-be-announced (or TBA) market represents the usual conforming loan—the plain Fannie Mae 30-year mortgage. Meanwhile, Ginnie Mae TBAs are where government…
Fannie Mae and the to-be-announced market When the Federal Reserve talks about buying mortgage-backed securities (or MBS), it’s referring to the to-be-announced (or TBA) market. The TBA market allows loan…
The ten-year bond influences everything from mortgage rates to corporate debt. It’s now the benchmark for long-term US interest rates.
The increase in rates has basically put prepayment worries on the back burner for REITs. The lack of a reaction in the refinance index on the back of a drop in rates could mean we’re finally seeing prepayment burnout. This would be good news for REITs.
Regulators are anxious to see private-label deals return, as almost everyone in Washington, D.C. agrees the government cannot continue to bear the lion’s share of the credit risk in the system.
The average 30-year fixed-rate mortgage rose 2 basis points, from 3.97% to 3.99%. Mortgage rates spent most of the summer stuck around 4.25% and only recently acknowledged the strong bond market rally.
These days, the Fed isn’t all that concerned about inflation raging out of control. Indeed, it would like to see higher inflation.
Wage inflation is probably necessary if we are to see actual inflation. Commodity price inflation in the context of flat wages is recessionary.
Since the Great Recession, however, the labor force participation rate has declined. It’s back to levels we haven’t seen since the late 1970s.
Gross domestic product, or GDP, growth is generally considered the barometer of the economy. But the biggest jumps in GDP growth often occur just as recessions end, before indicators such as unemployment come back.
Increasing rates are challenging mortgage originators this year. The increase in interest rates stopped the refinance boom in its tracks. Originators were forced to focus on the purchase business.
Just under half of all states are judicial. However, they’re concentrated at the top of the non-current leader board. Mississippi is the highest.
Mortgage delinquencies are falling as home prices rise and the foreclosure pipeline clears. While 5.7% seems low compared to the peak of 10%, the normal level before the housing bubble was 4%–5%.