Lately, mortgage rates and bond yields have shown a weak correlation. Treasury yields have fallen over the past month, while mortgage rates have been steady.
There are two basic types of state foreclosure laws—judicial and non-judicial. In non-judicial states, foreclosures are handled through a streamlined process.
Lately, mortgage rates and bond yields have shown a weak correlation. Treasury yields have fallen in the past month, while mortgage rates have been steady.
American Capital Agency declared a dividend of $0.60 per share for the quarter. It didn’t change from $0.60 per share declared during the fourth quarter.
Last week, bond yields fell by 12 basis points as global bonds sold off. Stocks gained on the risk-on trade. Markets still expect the Fed to do nothing next week.
Mortgage rates are the lifeblood of the housing market. The Fed’s plan to help the housing market started when it pushed rates lower to allow people to refinance.
Last week was pretty light in terms of economic data, but markets were concerned with adjusting to the Brexit vote. For all the worries about Brexit overseas, it simply won’t have much of an effect on US corporate earnings.
In April, the Case-Shiller Index rose by 1% month-over-month. It’s up by 5.4% YoY. Prices are still about 10% below the peak set in the summer of 2006.
After closing the prior week at 1.7%, bond yields—as tracked by the iShares 20+ Year Treasury Bond ETF (TLT)—rose by 14 basis points to 1.84% last week.
Mortgage rates are the lifeblood of the housing market. The Fed’s plan to help the housing market started when it pushed rates lower to allow people to refinance.
State laws affect the value of mortgage servicing rights. Typically, the rights in states like New York and New Jersey trade at a 25% discount to other states.
Mortgage rates are the lifeblood of the housing market. The Fed’s plan to help the housing market started when it pushed rates lower to allow people to refinance.
Mortgage rates are the lifeblood of the housing market. The Fed’s plan to help the housing market started when it pushed rates lower to allow people to refinance.
Lately, mortgage rates have mainly ignored bond market movements. However, they finally started catching up. Last week, they rose by 5 basis points to 3.67%.
MFA Financial ended up declaring a dividend of $0.20 per share for 4Q15, which works out to a 12.2% current yield. This was flat with what it had been paying for the past couple of years.
After closing out the prior week at 2.05%, bond yields, as tracked by the iShares 20+ Year Treasury Bond ETF (TLT), fell 13 basis points last week to close at 1.92%.
Mortgage rates have largely ignored the moves in bond markets. In the week ended January 22, they were unchanged at 3.7%. The ten-year bond yield rose to 2.05%.
After closing out the prior week at 2.1%, bond yields fell by 8 basis points for the week ended January 8 to close at 2.0%. They fell as global stock markets sold off on China’s weakness.
Though the week ended Friday, January 8, 2016, wasn’t fruitful for many investors, a few REITs provided some relief to investors in the volatile market.
Ten-year bond yields influence everything from mortgage rates to corporate debt. Now, they’re the benchmark for long-term interest rates in the United States.
The seasonally adjusted Case-Shiller Index rose by 0.8% month-over-month and is up by 5.5% year-over-year. Since home prices bottomed out, we’ve had a couple of years of low double-digit returns in prices.
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.
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%.
After closing out the prior week at 2.03%, bond yields, as tracked by the iShares 20+ Year Treasury Bond ETF (TLT), rose by 5 basis points for the week ending October 23 to go out at 2.08%.
The latest survey shows that consumers expect home price appreciation to increase by 2.5% over the next 12 months. This is up 20 basis points month-over-month.
Chimera’s core earnings grew to $116 million compared to $93 million in the year-ago period. Growth was mainly due to an increase in net interest income.
The recovery hasn’t been satisfying. Due to consumption and consumer deleveraging, the necessary spending isn’t generated to pull the economy out of its slow growth pattern.
At the March 2013 meeting, the Fed was forecasting that 2015 unemployment would be 6.7%–7%. Now, the Fed is forecasting that unemployment will be 5.2%–5.3%.
Since the bubble burst, mortgage origination has been almost exclusively government-driven. The US government bears 50% of the credit risk of the entire US mortgage market.
Borrower behavior is heavily influenced by consumer protection laws—particularly at the state level. States that require a judicial review of foreclosure activity tend to have higher delinquency rates.
In general, mortgage delinquencies fell to 5.4% due to home price improvements and clearing foreclosure pipelines. The normal level before the housing bubble was between 4% and 5%.
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.
We have a big week ahead, with a slew of important economic data and earnings from the mortgage REIT sector. The biggest REIT will be Annaly Capital reporting on Wednesday.
Real estate prices are a bigger driver of nonagency real estate investment trusts. Rising real estate prices also help reduce stress on the financial system.
The MBA Applications Index fell 7.2% after rising 0.2% the week before. This is the lowest reading for the MBA Mortgage Applications Index since early 2001.
Non-QM loans would typically be useful for borrowers with sporadic income, but a large amount of assets. However, lenders will only consider low loan-to-value (or LTV) loans—like 80% maximum, which really is a ceiling. Most lenders are below that.
In general, 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 prior to the housing bubble was in the range of 4%–5%.
MFA Financial (MFA) is a mortgage REIT that invests in both agency and non-agency mortgage-backed securities. Its portfolio is primarily invested in hybrids, adjustable-rate mortgages, and 15-year fixed-rate mortgages.
In the judicial states—particularly New York, New Jersey, and Connecticut—we’re seeing much lower home price appreciation— in fact, there’s very little residential construction at all
Mortgage real estate investment trusts (or REITs) like American Capital Agency (AGNC) and Annaly (NLY) will focus on data that will move the bond market.
It’s important to for investors to understand how real estate prices affect mortgage REITs like Annaly (NLY), American Capital Agency (AGNC), and Redwood Trust (RWT) as well as homebuilders.
The average 30-year fixed-rate mortgage rose 2 basis points, from 4.15% to 4.17%, while the ten-year bond yield rose 11 basis points after some weaker economic data.
The Consumer Financial Protection Bureau promulgated a list of requirements for a mortgage to be considered a qualified mortgage (or QM). On January 1, the new QM rules took effect.
Black Knight Financial Services (formerly known as Lender Processing Services) is a vendor to mortgage originators, handling mortgage processing and default management outsourcing.
Borrower behavior is heavily influenced by consumer protection laws, particularly at the state level. States that have a judicial review of foreclosure activity tend to have higher delinquency rates.
Existing home sales have been lower than usual. Most markets usually bottom on some sort of big volume wash-out, where inventory is dumped from weak hands into strong hands.
Black Knight Financial Services (formerly known as Lender Processing Services) is a vendor to mortgage originators, handling mortgage processing and default management outsourcing.
Mortgage originators have had a difficult time over the past year, as rates have begun rising. The increase in interest rates pretty much stopped the refinance boom in its tracks.
The 7.6% year-over-year gain was the second highest since mid-2006, and it puts the index back at April 2005 levels. The rate of price appreciation appears to be slowing.
Mortgage originators have had a difficult time over the past year, as rates have begun rising. The increase in interest rates pretty much stopped the refinance boom in its tracks.
The MBA Applications Index fell 12.8% after holding steady the week before. Mortgage applications have dropped off a cliff ever since rates began increasing last spring.
The current head of FHFA, Ed DeMarco, has steadfastly refused to consider principal mods because he views them as a losing proposition to the taxpayer.
The biggest names in the REIT sector are Annaly (NLY) and American Capital Agency (AGNC). They bear no credit risk, but they do bear a lot of interest rate risk.
The 12% year-over-year gain resembles the gains we saw during the bubble years. Both distressed sales and non-distressed sales rose by similar amounts.
Mortgage applications fall slightly The MBA Applications Index rose 0.3% after rising 1.2% the week before. Mortgage applications have dropped off a cliff ever since rates began increasing last spring. Both purchases and refinances drove the increase. The summer selling season is winding down, and we’re entering a slow period that will last through the […]
Mortgage originators are in a tough environment After feasting on the refinance boom of 2012, mortgage originators are finding 2013 to be a much more inhospitable environment. Many banks had added little capacity and were able to make a fine living doing refinance activity, which is a technologically driven business led by price discovery. It’s […]
Mortgage originations affect REITs in many ways Mortgage origination activity affects REITs primarily by influencing prepayment speeds. When rates fall, the borrower can prepay the mortgage through refinancing. This phenomenon affects both agency REITs (REITs that invest in mortgage-backed securities that are guaranteed by the federal government) and non-agency REITs (which invest in REITs that […]
