Alternative Mortgage Sources - Home Loans in California
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Bond Market Data:
Tuesday’s bond market has opened in negative ground despite weaker than expected economic news. The stock markets are showing noticeable gains despite that sales data. The Dow is currently up 94 points while the Nasdaq has gained 14 points. The bond market is currently down 7/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
The Commerce Department reported early this morning that retail level sales rose only 0.2% last month. This was well below forecast of a 0.6% increase. Even if more volatile auto sales are excluded, we saw figures that were well below expectations. This indicates that consumers were spending last much like analysts had expected, hinting at slower than forecast-ed economic growth. Since it points towards weaker economic conditions, today’s news should have been good news for the bond market and mortgage rates. However, it appears that traders are not too concerned with the data and are probably waiting for this afternoon’s event before reacting to it.
The market at 12:36 ET
10-Year: -07/32....2.039%.... GNMAs: .... USD/JPY: 77.92.... EUR/USD: 1.3075; ; ; ; In the News...; HARP 2 refinance plan a boost to borrowers, banks; The government's expanded refinance program for underwater homeowners, dubbed HARP 2, looks better than expected for both borrowers and banks.; The Obama administration announced the broad outlines of the plan on Oct. 24. Fannie Mae and Freddie Mac filled in most of the details in guidance bulletins issued late Tuesday.; The new program greatly reduces or eliminates the risk-based fees Fannie and Freddie charge on many loans and virtually eliminates the chance that lenders will have to pay for losses on loans that go into default if they made underwriting mistakes. It also vastly streamlines the underwriting process.; Read full article here...; ; Visit our Archive of Mortgage Articles
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Bond Market Data:; Tuesday’s bond market has opened in negative ground despite weaker than expected economic news. The stock markets are showing noticeable gains despite that sales data. The Dow is currently up 94 points while the Nasdaq has gained 14 points. The bond market is currently down 7/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.
The Commerce Department reported early this morning that retail level sales rose only 0.2% last month. This was well below forecast of a 0.6% increase. Even if more volatile auto sales are excluded, we saw figures that were well below expectations. This indicates that consumers were spending last much like analysts had expected, hinting at slower than forecast-ed economic growth. Since it points towards weaker economic conditions, today’s news should have been good news for the bond market and mortgage rates. However, it appears that traders are not too concerned with the data and are probably waiting for this afternoon’s event before reacting to it.
The market at 12:36 ET
10-Year: -07/32....2.039%.... GNMAs: .... USD/JPY: 77.92.... EUR/USD: 1.3075; Bond Market Data...; ;
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In the News...
HARP 2 refinance plan a boost to borrowers, banks
The government's expanded refinance program for underwater homeowners, dubbed HARP 2, looks better than expected for both borrowers and banks.
The Obama administration announced the broad outlines of the plan on Oct. 24. Fannie Mae and Freddie Mac filled in most of the details in guidance bulletins issued late Tuesday.
The new program greatly reduces or eliminates the risk-based fees Fannie and Freddie charge on many loans and virtually eliminates the chance that lenders will have to pay for losses on loans that go into default if they made underwriting mistakes. It also vastly streamlines the underwriting process.
Read full article here...
Visit our Archive of Mortgage Articles
