Posted To: MND NewsWireThe new conforming loans limits for mortgages that can be acquired by Fannie Mae and Freddie Mac were announced this morning by the Federal Housing Finance Agency (FHFA). As expected, the changes reflect the nearly unprecedented price gains over the last year. Earlier today FHFA posted third quarter changes in its Housing Price Index (HPI). Between the third quarter of 2020 and 2021 the expanded-data index (slightly different than the regular HPI) had grown by an average of 18.05 percent . The baseline conforming limit will be higher by that same percentage. The limit for single-family residential units in most U.S. counties, effective January 1, 2022, will be $647,200 . This is an increase of $98,950 from the $548,250 limit this year. The baseline limit for properties containing two units…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: MND NewsWireWhile the profits were nowhere near 2020 levels, independent mortgage banks and mortgage subsidiaries of chartered banks reported their third quarter 2021 gains did improve on those in Quarter 2. The report from the Mortgage Bankers Association (MBA) on mortgage bankers’ performance showed an average net gain of $2,594 on each loan that was originated during the quarter. This was up from a reported gain of $2,023 per loan in the second quarter of 2021, Total production revenue (fee income, net secondary marking income and warehouse spread) increased to 396 basis points (bps) in the third quarter, up from 375 bps in the previous period. This equated to $11,734 per loan compared to $10,691 in Q2. Net secondary marketing income increased to 310 bps from 297 bps or $9,300 per loan compared to …(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: Mortgage Rate WatchMortgage rates ended the previous week with a hopeful outlook due to the omicron variant. In general, rates benefit from news and events that cause investors to seek protection from risk. A fresh dose of risk aversion was served up overnight as Moderna’s CEO said he expected vaccine efficacy to be lower against the new variant. Those headlines sent stock prices and bond yields lower. When bond yields are lower, lenders are typically able to offer lower mortgage rates, all other things being equal. Indeed, today’s initial rate sheets showed strong improvements from yesterday. The average lender was offering the lowest rates in nearly 3 weeks. But things changed around 11am. In a congressional testimony, Fed Chair Powell’s comments on inflation and bond buying pushed the bond market back in the…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: MBS CommentaryBig Swings as Covid Squares Off Against The Fed It was omicron vs the Fed today and bonds had a front row seat. In the overnight session, comments from Moderna’s CEO (lower vaccine efficacy expected for omicron variant) sent stock prices and bond yields screaming lower. Then at 10am during a congressional testimony, Powell hit bonds with a one two punch, saying it was time to retire the word “transitory” when referring to inflation, and that tapering could need to be accelerated. The latter was a shot across the bow for the short end of the yield curve as it implied earlier rate hikes. MBS took the news far worse than Treasuries. Econ Data / Events Fed MBS Buying 10am, 11:30am, 1pm Case Shiller Home Prices (y/y) 19.1 vs 19.3 f’cast, 19.6 prev FHFA Home Price (y/y) 17.7 vs…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Posted To: MND NewsWireThe old adage about waiting for the kettle to boil could be applied to the widely predicted deceleration of home price appreciation. It seems to be happening, but it isn’t fast. The S&P CoreLogic Case-Shiller price indexes showed slightly lower monthly and annual gains in September than in August while the Federal Housing Finance Agency’s (FHFA’s) House Price Index (HPI) was unchanged from the previous report on an annual basis but down fractionally month-over-month. Case-Shiller’s National Home Index, covering all nine U.S. census divisions, reported a 19.5 percent annual gain in September, down from 19.8 percent in August. The 10-City Composite grew by 17.8 percent compared to 18.6 percent in the previous month and the 20-City Composite posted a 19.1 percent year-over-year gain, a half…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.