Ginnie Mae TBAs Rise by Ten Ticks, Reverse Trend
Ginnie Mae TBAs rose ten ticks to go out at 104 4/32. Ginnie Mae TBAs had underperformed Fannie TBAs for the past couple of weeks, but reversed the trend last week.
Fannie Mae TBAs rose four ticks to go out at 103 14/32 for the week ending November 27, 2015. The ten-year bond yield fell by four basis points.
Mortgage rates are the lifeblood of the housing market. The Fed’s plan to help the housing market began when it pushed rates lower to allow people to refinance.
Ten-year bond yields influence everything from mortgage rates to corporate debt. They’re now the benchmark for long-term US interest rates.
Economic data was front-loaded on Monday through Wednesday, and the highlight was the upward revision in third quarter GDP as it was taken from 1.5% to 2.1%.
Investors return to a packed week of data. The jobs report will be the highlight, as it’s the last one before the December FOMC meeting.
September was another month of a solid jump in house prices, beating the consensus estimate of 0.4%. On a quarterly basis, house prices rose 1.3%, registering the 17th consecutive quarterly increase.
After increasing 6.2% in the second week of November, mortgage applications fell 3.2% for the week ending November 20.
Case-Shiller home prices rose 5.5% year-over-year (or YoY) in September 2015, from a 5.1% increase in August 2015. It was above the consensus reading of 5.3%.
Analysts on Wall Street seem quite positive about the Weyerhaeuser and Plum Creek Timber securities. Eleven analysts are in support of buying the former.
Let’s explore the positive impact of the merger between Weyerhaeuser and Plum Creek Timber. They were the top performers of the week ended November 20.
For the week ending November 20, 2015, the iShares US Real Estate ETF and iShares Mortgage Real Estate Capped underperformed the SPDR S&P 500 ETF Trust.
An interest rate hike in the United States would be a significant event, and it would impact not only the domestic market but also the global market.
Despite the looming possibility of a rate hike, the iShares US Real Estate ETF outperformed the broad market SPDR S&P 500 ETF on November 20, 2015.
Many analysts on Wall Street are expecting REITs to underperform following the stipulated rate hike, but some are in complete disagreement.
REITs have become a popular investment tool to provide limited-time exposure to real estate for investors who cannot make significant investments.
The ten-year bond yield fell by 1 basis point for the week ending November 20. Ginnie Mae TBAs fell 5 ticks to go out at 103 25/32.
Fannie Mae TBAs, which had ended the prior week at 103 8/32, rose 2 ticks to go out at 103 10/32 for the week ending November 20.
Last week, mortgage rates rose from 3.87% to 3.92% even though the ten-year bond yield fell by a basis point.
Following the attacks in Paris, there was absolutely no flight-to-safety trade. Bond yields fell by 1 basis point for the week ending November 20 to go out at 2.26%.