MBS Live: MBS Afternoon Market Summary
Bond markets coasted into the domestic session after extremely quiet trading during Asian and European market hours. The bias was slightly weaker and MBS traded mostly near Friday's lows to begin the week. Stronger Retail Sales added to the selling pressure early, but the weakness was soon mitigated by news that the Troika won't reach a deal with Greece on the next aid tranche before Thursday's EU Summit. Despite that counterpoint, bond markets remained under pressure throughout the session after hitting their best level of the day just before 11am. The effective "cancelling out" of this morning's economic data by EU factors suggests that Thursday's summit is still in focus despite the high probability of disappointment.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
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Afternoon Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this afternoon.
11:33AM :
ALERT ISSUED:
Back Near Lows, On The Edge Of Reprice Risk
As of right now, negative reprice risk is probably fairly limited, though we could imagine one or two lenders who might pull the trigger this early.
Frustratingly enough, MBS and broader bond markets rallied nicely into rate sheet time, and even gave the appearance of stability long enough for most lenders to be out with rates. Shortly thereafter, we find ourselves down 3-5 ticks depending on the timing of the initial rate sheet.
This is essentially the line in the sand, beyond which, negative reprices become a bigger threat. The main risk here is not the current price levels themselves, but rather, a continuation of the selling trends that began around 10:30am. So far, we're holding our ground against further selling, but it's too soon to know whether or not that will continue to be the case.
Fannie 3.0s are down 4 ticks on the day at 105-04 and 10yr Treasuries are up just over a bp at 1.667. The stock lever has been well connected so far today, continuing the correlation from Friday.
Frustratingly enough, MBS and broader bond markets rallied nicely into rate sheet time, and even gave the appearance of stability long enough for most lenders to be out with rates. Shortly thereafter, we find ourselves down 3-5 ticks depending on the timing of the initial rate sheet.
This is essentially the line in the sand, beyond which, negative reprices become a bigger threat. The main risk here is not the current price levels themselves, but rather, a continuation of the selling trends that began around 10:30am. So far, we're holding our ground against further selling, but it's too soon to know whether or not that will continue to be the case.
Fannie 3.0s are down 4 ticks on the day at 105-04 and 10yr Treasuries are up just over a bp at 1.667. The stock lever has been well connected so far today, continuing the correlation from Friday.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.
Tom Bartlett : "I believe it is 2 years with good excuse and 3 otherwise but that is off top of head."
Dirk Postupack : "Customer out 2 years on a time share foreclosure...she is looking to purchase a home. How long does she have to wait to be FHA elgible?"
Ken Crute : "yes @ Jason"
Jason York : "on a conventional loan, if someone has a credit card on their credit, and they are listed as an authorized user, we can take it off, and out of their ratios, cant we, provided we get a credit supplement?"
Ray J : "there's an HVE in the LP approval"
Ray J : "i go straight to the the title company. titleprofile.com"
Victor Burek : "jz...does that site do a good job or is it hit and miss like most others?"
Jason Zimmer : "http://express.realquest.com/propertyvalue.aspx"
Robin Baran : "justin, redfin.com will give actual solds and chase has one on their main website"
Justin Dudek : "are there any other sites that offer estimated value besides zillow and trulia?"
Victor Burek : "just like when fha increases the mip...as long as you have already ran and had case number, it goes off the old factor"
Jason Harris : "Victor and Ken...thanks for that insight....wondering the same thing myself"
Michael Gillani : "I know, but it never has before."
Victor Burek : "DU accepted the value you ran as the fair market value of home"
Michael Gillani : "It's funny because I just got a PIW on a client that I've refinanced 3 times in the past 3 years and have always had to do a full interior/exterior. And now when I never see PIW at all anymore except on DURP, I get one on him. "
Victor Burek : "nope..no value,, appraiser justs drives by home, takes a photo to confirm house is not in disarray"
Jason York : "so, that isn't even an appraisal, right?"
Jason York : "this is what I got: An exterior-only property inspection is required for this transaction and must be reported on Form 2075. An appraisal is not required. Desktop Underwriter accepts the submitted value estimate as the market value of the property."
Ken Crute : "if you rerun Du it will still be current version "
Victor Burek : "no, go off the orig run"
Jason York : "but what if DU has to be rerun, wouldn't it go away"
Victor Burek : "no..as long as you have findings you are good"
Jason York : "ok, so if you have it now, when starting a file, I should just go ahead and have a full appraisal ordered, correct?"
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