According to a 2006 study conducted by Wholesale Access, 67.9% of mortgage brokers and direct lenders use Point, a figure greater than all other mortgage automation applications combined.
Provided by Sigma Research, Inc.
Thursday, 7/2/09 4:20 PM
The DJIA ended -222, NASDAQ -49, S&P -26. 10 yr note +12/32 3.50% -4 BP. Mortgage prices +5/32, +6/32 on FHAs and+5/32 on 15s.
Mae culpa; normally when we have a market holiday as we do tomorrow, the bond and mortgage markets close at 2:00 the previous day. Today however, rate markets continued to trade until their normal closes at 5:00. I didn't get the memo; sorry for the miss-step. Just to twist it up more; the NYSE stayed open today until 4:15.
June employment was much worse than analysts were expecting. Non-farm jobs declining 467K over 100K more than was thought. The unemployment rate at 9.55 was a 0.1% better than what was expected. Weekly claims for unemployment were on target, 614K filings for new unemployment, less than 627K last week but still bothersome as more each week loss their jobs.
The Treasury announced next week's auctions; next Monday $8B of 10 yr inflation indexed notes (TIPS); on Tuesday $35B of 3 yr notes, Wednesday $19B of 10 yr notes and Thursday $11B of 30 yr bonds. Supply will put pressure in the rate markets but it may be balanced with the stock market if it continues to decline as it did today.
Now that the pretty poor jobs report is over and done with the market will concern itself with how to take down all the supply coming through in the 3-30-yrs. The market was given some support on the less aggressive comments from ECB's Trichet following their rate meeting while global bonds were generally higher.
The week ahead offers little in the way of data outside of the ISM services report Monday so the auctions will be the focus. The first of the auctions hit Mon with the $8B 10-yr TIPS, while the Fed will be in buying in the 4-7-yr space as they continue to work their outright bond buying.
We are concerned that with $73B of supply coming next week that even if the equity markets are soft (which in itself may be unlikely) that the long end of the curve including mortgages, may see yields back up some. No real economic data after Monday's ISM services sector data until weekly jobless claims on Thursday. The 10 yr note did not have the strength today to break its yield resistance at 3.50% although the stock indexes were down hard. The supply coming is over-riding what may be a turn in equities. That said, if the indexes continue to be hit rate markets won't pull back as much as they will if stocks find support on Monday.
On the week: the 10 yr note yield at 3.50% was down 3 BPs, its price +8/32; the 2 yr note yield at 0.99% was down 12 basis points. Mortgage prices, 30s +12/32, 15s +10/32 and FHA 30s +11/32. Gold -$9.60; crude oil -$2.44. The DJIA -149 , the NASDAQ -42, S&P -21.
Freddie reports the average 30-yr mortgage fell over the past week to 5.32% from 5.42%, the 15-yr dropped to 4.77% from 4.87% while 1-yr adjustable squeaked up to 4.944% from 4.93% (Reuters)
Fannie and Freddie have received the green light from their regulator to refinance underwater homeowners with loan-to value ratios as high as 125%. The special refinancing plan that Obama administration officials unveiled in February limited the refinancing option to loans with LTV ratios of 80% to 105%. But the 105% LTV limit would not offer any relief for borrowers who have seen the values of their home erode by 15% to 30%. Fannie said it would accept delivery of the higher LTV loans starting Sept. 1.
Mortgage industry employment fell by 600 full-time employees in May but the government jobs report shows that lenders added 2,900 new workers to their payrolls while 3,500 mortgage brokers left the industry. The U.S. Bureau of Labor Statistics reported that employment in the mortgage banker/broker sector fell to 266K in May from 267K in April.