Fri. 5/18/12, day 139 with 227 days remaining in 2012
Quotes below as of 10:00 AM (EDT)
- Freddie Mac 10 day delivery rate : 3.19%
- Long Bond Yield : 2.84%
- Benchmark 10-Year T: 1.73%
-30Y/Fannie yield spread : 35 BP
-10Y/Fannie yield spread : 146 BP
- 30-Day moving average for delivery rate : 3.28%
-
10-Day Delivery rate a month ago today: 3.32%
- 10-Day Delivery rate a year ago today: 4.26%
* * * Precisely what the "Delivery Rate" is (besides the basis of most fixed rate loans) can be learned in our Glossary of Terms Used. * * *
Good Morning Lenders. The text that follows is only a partial 'thumbnail’ of what appears in our publication Daily Economic Insights. Please see the instructions below if you would like a free trial subscription.
We are poised to close the week with an 8 BP improvement for the delivery rate, but that does not tell half the story of what is going on in the global financial markets. Even the greatly anticipated IPO of FaceBook could not prevent the broadest market indices from realizing material losses today and fear has spawned a classic “flight to quality” in the credit markets both here and in Germany as yields hit record lows recently. More on this subject will appear in Topic A of today’s daily newsletter.
We are in an econonews void today and we were looking forward to see what would transpire in the markets today. No surprise for us that there is an element of profit taking in the Treasury and MBS markets after the upward catapult for prices yesterday. Earlier losses have been pared down to nearly flat as Moody’s downgrade several large Spanish banks as we suggested would be happening in yesterday’s newsletter. In today’s daily we’ll get into our regular weekly feature of where we think rates are headed in the upcoming week.
The delivery rate (DR) opened the trading session 3.19%, which is only 2 BP above yesterday’s closing level. It has not budged since the opening. What is really driving the mortgage-backed securities market, which is what drives the DR, and where are they likely to head from here? You can either read about it this morning in our Daily Edition of Economic Insights 2012, or wait until after the fact to find out, so… Stay tuned.
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There are no changes for
2012 conforming loan limits.
You can download a complete listing of all counties in the USA for their 'High Balance' conforming loan limits by clicking here. Fannie & Freddie no longer go up to $725,750 in higher priced markets.
The delivery rate for the past 30 days
 
Mortgage Bankers Association weekly new home loan
applications indices for the week ending 5/11/12
-Overall Index 534.0: Up 9.2% versus prior week &
up 32.75% versus the same week a year ago.
-Purchase index 153.3: Down 2.4% versus prior week &
Down 6.9% versus the same week a year ago.
-Refinance index 2,963.7: Up 13.0% versus prior week &
Up 100.37% versus the same week a year ago.
(release date Wed. 5-16-12)
 
Latest Pre-Owned Home Sales reported by
The National Association of Realtors
March’s Annualized Sales Pace 4.48 million homes sold
(Down 2.6% from February’s 4.60 MM pace &
Up 5.2% versus March 2011 pace of 4.26 MM)
Release Date 4-19-12
 
Latest New Home Sales reported by US Commerce Dept.
March’s Annualized Sales Pace 328,000 homes in contract (not closed) (Down 7.1% from February’s revised 353,000 pace &
Up 7.5% from March 2011’s 305,000 unit pace)
NE Region 28,000 unit pace (Up 7.7% from February’s 26,000 pace & Up 12.0% from March 2011’s pace)
Midwest Region 36,000 unit pace (Down 20.0% from February’s 45,000 & Down 7.7% from March 2011’s pace)
South Region 199,000 unit pace (Up 3.1% from February’s 193,000 & Up 16.4% from March 2011’s pace)
West Region 65,000 unit pace (Down 27.0% from February’s 89,000 & Down 7.1% from March 2011’s pace)
(release date 4-24-12)
Latest New Housing Starts reported by H.U.D. & Commerce
April’s Annualized Starts: 717,000 units
(Up 2.6% from the upwardly revised 699,000 for March
and Up 29.9% from the 552,000 for April 2011)
Release date 5/16/12
New Residential Permits for April were 715,000
Down 7.0% from the downwardly revised 769,000 for March
and Up 23.7% from the 578,000 for April 2011
Release date 5/16/12
Latest National Assn. of Home Builders’ Index
May 2012 Overall index = 29 (Up 5 from 24 in Apr)
Present Sales = 30 (Up 5 from 25 in Apr )
Plans to Buy Within 6 Months = 34 (Up 3 from 31 in Apr)
Buyer Traffic = 23 (Up 5 from 18 inApr)
Release date 5/15/12
Home Loan Interest Rates Weekly Closing Level
(as defined by the Freddie Mac delivery rate, the largest buyer and owner of fixed rate home loans in the United States.)
Week Ending 5/11/12 = 3.27%; Down 1 BP
from 3.28% for the week ending 5/4/12
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