Good morning and happy Friday! With no scheduled mortgage or housing releases today, we’re going to be short and sweet. We have a couple of news stories to cover, beginning with MBS pre-pay speeds for July, which were released yesterday afternoon. All coupons of 30yr FNMAs showed a collective 10% decrease in speed over June and 15yr fell 8%. Both were at the low-end of expectations. In other housing news, the huge run-up in prices during Covid has taken more than 1 million homeowners who were seriously underwater on their mortgages at the end of 2019 to a positive equity position. The actual numbers of the underwater have fallen from 3.5 million in 2019 to 2.25 million in the 2nd quarter of 2021. Most economists are calling for prices to continue higher into 2022.
Bonds today are selling off thanks to a stronger than expected jobs report. The 10yr T-Note is -21/32 to yield 1.29% and in MBS 30yr FNMA 2.50% are -10/32 to $103-31, yielding 1.47% which is +85 to the treasury curve. Have a great weekend!
Cherry Picks
10 Year Fixed
15 Year Fixed
20 Year Fixed
30 Year Fixed
Agency CMBS
Agency CMO – 3 Year
Agency CMO – 5 Year
Agency CMO – Long End
Jim Tait is a registered representative with and offers securities through Hanover Securities, Inc. (Hanover), Member FINRA & SIPC. Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Securities that may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results.
This information from Hanover Securities is for your private use and does not constitute an offer or solicitation with respect to the sale of any security. This information was obtained from sources we believe to be reliable but we do not represent that it is accurate or complete, and it should not be relied on as such. Certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in securities identical or related to those identified herein.
Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Loans and/or Securities which may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results. This information from Banes Capital Group (BCG) and/or Hanover Securities is for your private use, and was obtained from sources we believe to be reliable. However, we do not represent that this information is accurate or complete, and it should not be relied on as such. This information is for institutional investors only, and as such certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in loans or securities identical or related to those identified herein.
The pricing of loans or any Level II or III asset is inherently an exercise in quantifying uncertain variables. As such, great care should be taken when pricing loans for reporting purposes. The information included herein should never be taken as the sole method, or even a method to be relied on, for the pricing of loans or other Level II or III assets as this is for informational purposes only.
