Posted To: MBS Commentary

MBS and Treasuries are both up on the day with the 4.5 gaining 6 ticks to 101-09 and the 10yr up 7 ticks, dropping the yield to 3.455. Supply is light in the mortgage world while demand remains "less light" courtesy of the Fed and servicers adding duration in the persistently low rate environment. But the ongoing caveat of LOW VOLUME remains. New originator supply is struggling to show 500 mil and 10yr contracts only recently crested 350k. Volume is almost too low to read much into this AM's high yields in the 10yr coinciding with yesterday's low yield. Given yesterday's similarly low volume in conjunction with yield curve steepness (among other things), there's a lot riding on this auction. As AQ mentioned earlier, it's the week's first decent look at demand…(read more)

Posted To: MND NewsWire

Results of the October Senior Loan Officer Opinion Survey on Bank Lending Practices released yesterday by the Board of Governors of the Federal Reserve focuses on three current issues; the status of credit for commercial real estate (CRE) loans and commercial and industrial (C&I) loans and the pending implementation of the Credit Card Accountability Responsibility and Disclosure (Credit CARD) Act. The survey report, based on responses from 57 domestic banks and 23 U.S. branches and agencies of foreign banks, addresses changes in the supply and demand of loans to businesses and households over the last three months. Included in the October survey, however, were three special questions. Banks were asked about the reasons for the apparent decline in C&I loans over the first eight months…(read more)

Want to refinance on the FHA Streamline Refi program? Better get a move on. Beginning in just 5 days — November 17, 2009 — the FHA changes over to new guidelines for its popular FHA-to-FHA refinance program. Getting approved for a Streamline Refi will be more difficult and more expensive.