Treasury Archives - MBSQuoteline

BlogTalkRadio Podcast – Apr 12, 2010

JoeFarr 2017-12-20T17:34:19+00:00 April 22nd, 2010|Categories: BlogTalkRadio Podcasts|Tags: Andy Schell, BlogTalkRadio, Community Mortgage Banking Project, Consumer Price Index, CPI, David Lykken, Fed, Federal Reserve, Glen Corso, Industrial Production, inflation, Lykken-on-Lending, MBSQuoteline, mortgage bankers, mortgage prices, Treasury, Treasury Auction, Treasury prices|

MBS prices are up nicely this morning, up 9/32nds. No economic data was released this morning. The Dow is also up. It is above 11,000 for the first time in 18 months. Last week was a great week for the mortgage market. MBS prices improved about 24/32nds during the week. Most of the improvement followed a very strong 10 yr Treasury auction. Strong demand and foreign participation fueled a rally in Treasury prices, which spilled over to MBS prices. Also kind to MBS prices during the week were the minutes from the 3/16 Fed meeting. The minutes showed that the Fed was nearly unanimous in their belief that Fed funds rates need to stay very low for an extended time and that inflation was not a concern. Next week will be full of significant economic announcements. On Wednesday both CPI and Retail Sales for March will be released and on Thursday Industrial Production will be released. Glen Corso, Executive Director of the Community Mortgage Banking Project, joined the show to discuss further the need to voice concerns about the 5% risk retention provisions in the current Financial Reform bill before the Senate. Glen described that passage of the bill with [...]

BlogTalkRadio Podcast – Apr 5, 2010

JoeFarr 2017-12-20T17:34:19+00:00 April 22nd, 2010|Categories: BlogTalkRadio Podcasts|Tags: best efforts strategy, BlogTalkRadio, Community Mortgage Banking Project, David Lykken, Fed, Federal Reserve, Glen Corso, ISM Services Index, Lykken-on-Lending, mandatory delivery strategy, MBS, MBS Purchase Program, MBSQuoteline, mortgage prices, National Association of Realtors, nonfarm payrolls, Pending Home Sales Number, Restoring American Financial Stability Act of 2010, Rob Katz, Tom Million, Treasury, Treasury Auction|

MBS prices are lower this morning after a stronger than expected ISM Services Index was announced at 8:30 a.m. et and then at 10:00 a.m. et a much better than expected Pending Home Sales number was released. This followed a week last week that saw MBS prices fall by about 1%. Last week included the end of the Fed’s MBS purchase program, but the end of the program cannot be the sole blame for the drop in MBS prices. Treasury prices fell as well and stocks improved. Generally, the economic announcements during the week, including the Nonfarm Payrolls, were better than expected increasing the need to build in yield to cover longer term inflation. The spread in yields for 10 yr Treasuries versus mortgage-backed securities did widen but only by 15 to 20 basis points. The focus of the mortgage industry regarding pending legislative and regulatory issues is now placed squarely on the Senate Finance Committee’s passage of the Restoring American Financial Stability Act. This Act contains many provisions which if passed will impact mortgage companies, but possibly none as significantly as a provision which will require mortgage originators and/or security issuers to retain 5% of the risk of the [...]

BlogTalkRadio Podcast – Mar 29, 2010

JoeFarr 2017-12-20T17:34:19+00:00 April 22nd, 2010|Categories: BlogTalkRadio Podcasts|Tags: BlogTalkRadio, David Lykken, Delmar DataTrac, Durable Orders, Health Care, Health Care Reform Bill, HMDA, inflation, interest rates, investors, Joe Farr, loan originators, Lykken-on-Lending, market, MBS, MBS market, MBSQuoteline, mortgage backed securities, mortgage market, mortgage prices, podcast, Restoring American Financial Stability Act of 2010, Rob Katz, secondary market, Treasury, Treasury Auction, unemployment|

MBS prices were volatile last week and fell about half a point during the week. Most of the push for MBS prices lower came from weak Treasury auctions. On Wednesday the 5 Yr Treasury Note received lower than usual demand, especially from foreign investors, and the yield required from the bidders was higher than the previous trading range. The weakness in the Treasury auction spilled over to the MBS market. The economic data released during the week was mixed with Durable Orders better than expected and the housing data was a little weaker than expected. All of the focus in Congress now that Health Care has passed seems to be with the Restoring American Financial Stability Act of 2010. This proposed law will have sweeping changes for the mortgage industry, if passed. It includes the creation of a new regulator for consumer protection, retention of 5% of the risk on loans originated and then sold, and increased HMDA reporting requirements, among other things. This 1300 page bill seems to be on a fast track. Discussion continued on the risks and benefits of converting a mortgage company’s operations from a best efforts delivery of loans originated to a mandatory delivery. The [...]