Mr. Cooper will be filing a motion to dismiss a data breach-related class action by Sept.13, documents show.

You never know what you’re going to get on the days surrounding a 3 day weekend for financial markets, and that’s doubly true when it corresponds with the final/first trading day of the month.  Despite all of those potential curveballs, the bond market stayed calm enough for mortgage rates to do the same.  Friday took rates slightly higher, but that modest move has been erased at the start of the new week/month. Each of the next 3 days contains important economic data with the power to impact rates.  The most important report of the week (and the month, for that matter) is Friday’s Employment Situation (aka “the jobs report”).  This report is especially important as it has a chance to bolster or refute the case made by the previous report (the one that was much weaker than expected, thus resulting in sharply lower rates). In general, stronger data will put upward pressure on rates and vice versa.  

No Major Reaction to Data, But Data Remains Relevant

As with most “first weeks of the month,” this one has potentially significant economic data every single morning.  With ISM Manufacturing kicking things off, today was no exception, but it didn’t end up having a big impact.  Considering the near perfect alignment with expectations, that’s not much of a surprise.  The flood of “new month” trading positions ended up being a much bigger market mover (well before the data).  Weakness in the stock market also helped drive some safe haven buying in Treasuries. 

Econ Data / Events

S&P Manufacturing PMI

47.9 vs 48.0 f’cast

ISM Manufacturing PMI

47.2 vs 47.5 f’cast

ISM Prices

54.0 vs 52.5 f’cast

Market Movement Recap

09:40 AM New month trading = gains for bonds.  10yr down 5.2bps at 3.852.  MBS up 6 ticks (.19).

12:48 PM still stronger but off best levels.  MBS up 5 ticks (.16) and 10yr down 4.7bps at 3.857

02:18 PM Flat at the same levels as the last update.  10yr down 5.3bps at 3.851

Remember last Friday?  It was sort of “weird” due to enigmatic selling pressure in the bond market. Yields stretched up to the highest levels in more than two weeks without any apparent provocation.  To some, it may have seemed like the prevailing consolidation pattern was breaking down in favor of a shift toward a selling trend.  To others, it was just the sort of random trading often seen on month-end Fridays–especially those that occur ahead of a 3 day weekend.  This morning’s trading is more than completely erasing the weirdness and getting trading levels back in line with last week’s best.

It was the third of September, a day I’ll always remember… Will September 18th be remembered as the day that the Federal Reserve lowers fed funds for the first time since April of 2020? Probably… It is certainly already priced into interest rates. (Fed funds have been in the mid-5’s for a year.) Mortgage interest rates have started to fall making buying a home more affordable again and injecting some new life back into the real estate and home finance business. STRATMOR Group Senior Partner Garth Graham believes the upcoming surge in purchase business will not look like it did the last time the industry saw a wave of new business, and it won’t benefit all lenders equally. Listen in today at 11AM PT as he and STRATMOR Senior Advisors Brett McCracken and Sue Woodard talk about why the ongoing battle between the industry’s largest real estate companies and the Department of Justice over consumer disclosures regarding buyer’s agents is having a massive impact on the real estate business and what lenders can do to prepare. Let’s not forget the wild card of homeowner’s insurance: Allstate has received approval to raise its California homeowners insurance premiums by an average of 34% starting in November, the largest rate increase this year amid the state’s insurance crisis. Well, at least Allstate is not bailing out of doing business in CA! (Today’s podcast is found here and this week’s is sponsored by Stavvy. Moving real estate beyond paper documents. Stavvy is the digital platform that helps real estate professionals grow their business and ditch the paper process. Book a demo today! Hear an interview with Short Solutions Liz Short on how C-Suite executives can define technological goals, streamline processes and integrations, and maximize revenue.)

The case over a federal investigation is unrelated to the trade group’s recent commissions changes.

The interim procedure applies to nonjudicial foreclosure sales and is aimed to help avert “immediate adverse financial and market impacts” when surplus funds are not available.

The Mortgage Bankers Association anticipates recent developments will change dynamics in the market for lending on income-producing properties.

Borrowers who worked with third party originators last year will save on average over $10,000 over the life of their loan, according to an analysis of public data.

California lawmakers have sent a bill to Governor Gavin Newsom’s desk that would expand a state-backed down payment assistance program to undocumented immigrants who are looking to buy a home.