Today's Market Commentary

Mortgage and Lending with Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 NMLS ID# 158606

Yesterday, mortgages tightened slightly as continued demand from the Fed and steady purchases from money managers in higher coupons was enough to counter the supply brought to market from originators.  Mortgages tightened (outperformed) versus swaps by 1-2/32nds by 3:00pm.  Originator selling for the day was ~$3.5bln, which is just over the $3.2bln daily average seen this month.  At 5:00pm, the FNCL 4.0 was +2.5/32 at 99-29+ and the FNCI 4.0 was +4.0/32 at 101-12+.  

The economic releases yesterday included the housing starts data for April.  The report showed that new housing starts fell by 13% since March, which is down to an annualized rate of 458k.  Analysts had actually expected a small 2.0% improvement month over month which would have reinforced the improvement seen in the NAHB index on Monday.  Many in the industry feel that it will still be months before we see any recovery in new construction.  The amount of permits issued for new construction projects also fell last month.  Building permits were down 3.3% from March as home builders have been waiting for customers to fully qualify for financing before they start new projects.    

This morning the MBA's mortgage application survey was released, and showed that the index rose by 2.3% last week as slightly lower financing rates bolstered refinance activity.  Also the minutes from the last FOMC meeting will be released this afternoon and the market will be looking for any updates or status on the quantitative easing programs that are now in place.  Currently, treasuries are little changed in front of the Fed's planned purchase activity today.  The Fed today will be targeting issues maturing from Feb 2016 to May 2019.   Right now, the 2yr is +0.5/32 (0.883) and the 10yr is +0.5/32 (3.243).  Equity futures are pointing to a slightly higher open following yesterday's sell-off.  Dow futures are +35.0 and S&P futures are +4.2.

Posted by

If you choose, you can find me here:

          Follow The Twittering Tweets on Twitter        Follow Bettag's Blabs on Facebook        Google Me If You'd Like        Follow Me On Linked In


Cherry Creek Mortgage Company       Path 2 Buy Certified Coach Follow me on Pinterest                 

                      NMLS ID#158606          Equal Housing Logo     An Illinois Residential Mortgage Licensee



This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
ActiveRain Community
1st Time Buyers
Out Of The Box!
Almost Anything Goes
Mortgage Bankers
market conditions
market commentary
economic news
economic data
capital markets

Spam prevention
Show All Comments
Katiejo Franks
Real Estate and Beyond, LLC - Scottsdale, AZ

Thanks for sharing the mortgage and real estate business data with AR

May 20, 2009 01:32 AM #1
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Larry Bettag

Vice-President of National Production
What to know how to buy if you're a bit credit challenged?
Spam prevention

Additional Information