The merger between the two retail mortgage businesses will grow the company’s footprint, especially in the Pacific Northwest, according to Synergy One’s CEO.

Federal Reserve chair Jerome Powell flagged a recent upward revision to income and savings data as a sign of economic strength. He said the information could factor into the central bank’s monetary policy discourse during the Fed’s next interest rate meeting in November.

Longbridge asserts its rival is unfairly funneling business via a number of websites containing fake reviews allegedly run by Mutual of Omaha itself.

Homes are 4.4% more affordable, the first annual improvement in years, while first-time buyers with lower incomes can qualify for a median priced house.

Mortgage rates have generally been moving higher since the Fed cut rates 2 weeks ago.  We’ve discussed and explained that paradox exhaustively and can now move back to tracking the normal array of cause and effect in the rate market. The first day of the new week kept the trend of steady rate increases alive. Technically, these are the highest rates since September 9th, but it’s important to remember that there’s been very little change in the bigger picture.  Apart from the past few weeks, today’s rates would still be the lowest in more than a year. While today’s weakness can’t be reduced to a single factor, the primary motivation was a speech from Fed Chair Powell in which he reminded the market that the Fed was not in a hurry to cut rates.  The message wasn’t that different from the press conference that followed the Fed rate cut 2 weeks ago, but some market participants were perhaps hoping to see a softer side of Powell.  From here, the schedule of economic data brings distinct opportunities for volatility in rates every day for the rest of the week.  Friday is the most highly consequential due to the jobs report release at 8:30am ET.

Moderate Losses For Bonds as Powell Stays “Hawkish”

In the lexicon of market watching, the Fed is considered to be dovish when they’re saying things that are generally friendly for rates.  When the opposite is the case, the term is “hawkish.”  Relative to expectations, the market felt Powell was hawkish at the press conference 2 weeks ago.  Because of that, and because of the bond losses that followed, there was some false hope for a dovish counterbalancing act today.  It wouldn’t exactly be fair to say Powell was hawkish, but he certainly wasn’t feeling compelled to throw the bond market a bone.  The comment earning the most focus was essentially a reminder that the Fed is not in a hurry to cut rates and will be guided by data.  This isn’t really anything new, but bonds were modestly disappointed nonetheless. 

Market Movement Recap

09:40 AM Choppy weakness overnight with a modest bounce back early.  MBS down 3 ticks (.09) and 10yr yields up 1.6bps at 3.766

11:17 AM MBS now down 6 ticks (.19) and 10yr yields are up 2.5bps at 3.775

02:14 PM Weakest levels now.  MBS now down more than a quarter on the day 10yr yields are up 4.7bps at 3.797

03:58 PM Modest bounce near the end of trading for the day.  MBS still down 9 ticks (.22), but 10yr now up only 3.8bps at 3.788

Momentum has been building and focus has been shifting.  After a few years of inflation reports giving the jobs report a run for its money in terms relevance to the bond market, things have rapidly been shifting back to the more typical pattern of the past few decades.  That typical pattern has one throne and one king: The Employment Situation (aka “the jobs report”). This reality has been firmly reinforced by the Fed’s messaging (speakers have expressed calmer attitudes on inflation and discussed increased focus on the labor market). While we wait for Friday’s jobs report, the week’s other reports and events are also worth tuning in for.  Today is the lightest calendar day with the only notable event being a Powell speech at 1:55pm ET.  

Well, this is the week that many have been waiting for: Fat Bear Week! The nearly 600 mortgage folks here in Las Vegas at the ACUMA event can talk about little else besides that, and needing a GPS for finding your way around town and back to one’s room. A more serious topic of discussion is increasing storm strengths over the years, most recently evidenced by Helene which is blamed for deaths in five different states. Fairway Independent is putting up $1 million dollars towards the much-needed relief efforts due to Hurricane Helene. CEO Steve Jacobson shot out a note. “That is barely enough. We are challenging all of the main IMBs and the major wholesale lenders to do the same. Why not? If we are really all here to help and serve others, why not come together when it is needed, and collectively support a region that is in desperate need? Our industry has a responsibility to help when needed. The HELP is NEEDED.” Thank you, Steve, and Fairway. (Today’s podcast is found here and this week’s is sponsored by Candor. Candor’s authentic Expert System AI has powered more than 2 million flawless, hands off underwrites. Every credit risk decision Candor makes is backed by a Warranty, eliminating repurchase worries. Hear an interview with Polunsky Beitel Green’s Andy Duane on proposed changes to the Basel III capital requirements.) Lender and Broker Software, Services, and Loan Programs Introducing the Blueprint for Reverse Mortgage Success! Leading reverse mortgage lender and servicer Longbridge Financial, LLC (NMLS #957935) is excited to launch its newest initiative tailored for mortgage professionals: A Blueprint for Reverse Mortgage Success. Did you know the mortgage industry left $200 million in net revenue behind in 2023 according to Home Mortgage Disclosure Act data? This comprehensive program is designed to equip you with the insights and tools to thrive in the growing reverse mortgage market, where seniors hold a wealth of untapped home equity. From expert guidance to actionable strategies, Longbridge is here to help you unlock new opportunities for your business. Come meet Longbridge CEO Chris Mayer and the Executive Team at MBA Annual to learn more! Set up a meeting with the Longbridge leadership team. Can’t make it to MBA? Contact Adrian Prieto, SVP of Wholesale & Third-Party Relationships for Longbridge to learn more.

The disaster underscores Americans’ dangerously low levels of flood insurance coverage, especially away from coastal areas.

State housing finance agencies had a resurgent fiscal 2023 and the recent fed funds rate reduction could have a mixed impact on them, Fitch Ratings said.