The title insurer said its title data and property records research tools have been restored, as well as its warranty site.

Also, Stavvy acquires new executives after latest acquisition, Logan Finance accelerates expansion and CV3, First Community and Kiavi add capital markets experts.

The year-end yield on the bond, a global anchor for markets and U.S. mortgage rates, is the culmination of a stunning rebound for Treasuries.

Uneventful End to an Eventful Year

2023 may be a year that we won’t soon forget, but the past two weeks have been quite the opposite. Today’s holiday-shortened trading session did nothing to change the narrative.  Yields were modestly higher overnight, giving chase to a slightly bigger sell-off in Europe.  Domestic traders pushed back toward unchanged levels by mid day but sellers resurfaced at the 1pm CME close. Trading levels remained easily within the exceptionally flat range seen since Dec 14th. We continue to focus on next week’s economic data and Fed Minutes as the first major sources of potential volatility in 3 weeks.

Econ Data / Events

Chicago PMI

46.9 vs 51.0 f’cast, 55.8 prev

Market Movement Recap

09:34 AM Weaker overnight with Europe.  10yr up 3.5bps at 3.881.  MBS down an eighth.

11:28 AM MBS back to unchanged.  10yr now up only 1.6bps at 3.862.

01:33 PM Weakness at the 1pm CME close.  10yr up 4bps at 3.885.  MBS down an eighth.

Looking back at October when 30yr fixed mortgage rates were over 8%, a return to the roughly unchanged levels by the end of the year may have seemed like too much to hope for.  While we might not have made it quite back to rates seen on the last day of 2022, we got surprisingly close. Today’s movement didn’t contribute to this conclusion in any meaningful way.  The average lender quoted modestly higher rates compared to yesterday afternoon, but still right in line with the flat trend that’s been intact since December 14th. Next week could easily bring more volatility with several important economic reports on tap, starting on Wednesday.  

VA loans have majorly streamlined since a decade ago. The minimal red tape that remains is often justified; VA seeks to protect its veterans. For the first time that I recall, the VA is looking for public comment about their Local Requirements, also known as Minimum Property Requirements or MPRs (PDF). These include anything from required termite inspection reports to state-specific nuances. In 18 years of lending, this is the first time that I have seen VA requesting feedback and that opening is only good for a couple more weeks. VA’s official notice is here: To Realtors and lenders: you either have experience with VA’s Local Requirements or you will have experience with them. Even if your comment simply asks VA to follow other agencies’ loan program requirements, it’s worth submitting. Check out the “Summary” paragraph of the official notice above. The VA is asking if simplifying their guidelines is something worthwhile . Since these are public comments, you’re open to craft or adapt your submission based on others’ sentiments. There are currently few comments and the direct URL for this feedback page was difficult to find. My wasted time is now yours to command. I hope to see this page filled with hundreds of comments by its closing date. Ask yourself, “Do VA’s local requirements represent best practices for purchasing real estate in my state?” While lenders and Realtors likely have more experience with VA guidelines, feedback from veterans is even more important. This includes:

“What do you call a gal who’s had too much to drink? A cab.” Of course, anyone who’s been drinking should stay away from California’s 40-foot waves. Drinking too much has its consequences, either when you’re doing it or the next day, and under the “Big Brother marches on at the expense of privacy” heading, in Brazil, Burger King says it’s doling out “Hangover Whoppers,” using facial recognition to determine whether you had too much to drink last night. Technology has strange offshoots. Google, thought to be tech but actually the world’s largest advertising company, owns the majority stake in Nevada’s Burning Man, held around Labor Day. There are strange things that have nothing to do with technology, of course, like the ownership of Napolean’s “staff of life.” (See how I slipped this in when everyone’s on vacation?) Today’s podcast can be found here, and this week’s is sponsored by Gallus Insights. Mortgage KPIs, automated at your fingertips. Gallus allows you to go from data to actionable insights. If you can use Google, you can use Gallus. For the final “interview” of 2023, Robbie answers questions about his life outside of mortgage banking. Broker and Lender Software, Products, and Programs Truv is now an approved third-party service provider supporting Freddie Mac Loan Product Advisor® asset and income modeler (AIM). Revolution Mortgage estimates that they can save up to $20,000 in cost on verifications with TRUV over competitors. “Let’s talk about our documentation costs and those giant monopolies that are out there and laughing at customers and increasing prices because they have a particular monopoly. You want to lower your manufacturing costs” said Femi Ayi, EVP Operations. Contact TRUV today to discuss how we can help you with your income, employment, insurance, and asset verifications. Come join us!

Today’s abbreviated session (early close at 2pm ET) is already being dominated by year-end trading.  With December marking the best month in 15 years for several sovereign benchmarks, traders are closing out positions for the year and ahead of the extended weekend (closed Monday).  European bond yields rocketed almost 10bps higher.  US Treasuries followed at a more measured pace and are now finding their footing with roughly 3bps of losses.
In the chart below, both EU and US yields occupy the same outright range on their respective axis (roughly 10bps).

Borrowers can shell out nearly $300 less per month to purchase a median-priced home compared to late October when rates peaked near 7.8%, according to new data.

But the decline may be close to its floor, as wide spreads compared to 10-year Treasury yields hinder how far averages could fall.