Wed. 7/23/08, day 205 with 161 days remaining in 2008
Quotes below as of 10:00 AM (EDT)
- Fannie Mae 10 day delivery rate : 6.40%
- Long Bond Yield : 4.69%
- Benchmark 10-Year T: 4.14%
-30Y/Fannie yield spread : 171 BP
-10Y/Fannie yield spread : 226 BP
-10-Day Delivery rate a month ago today: 6.24%
-10-Day Delivery rate a year ago today: 6.59%
Good Morning Lenders. The text that follows is only a partial 'thumbnail’ of what appears in our publication Daily Economic Insights. Please see instructions below if you would like to see some free samples.
We will remain in an econonews void until this afternoon when the Fed releases their Beige Book, named for the color of its cover. The Beige Book is always released within two weeks of an upcoming Open Market Committee meeting of the Fed. It does not take a rocket scientist to figure out that the national economy is buckling under the weight of higher energy costs.
This morning we did get the weekly release of new mortgage loan application indices for last week. According to the Mortgage Bankers Assn (MBA) the numbers of new purchase loan applications last week were down 6.7% and the refinance index was down 5.6%. We will get into this release in greater detail in today’s Daily Edition of Economic Insights 2008.
As is often the case we are seeing prices fall in the credit markets as they rise in the stock markets. Stock prices are rising as oil prices continue to decline and this is working against credit instrument prices even though lower oil prices may ease inflationary pressures ahead. The delivery rate is up again and it remains to be seen how wholesalers will price this morning. Where is the delivery rate (and the credit markets) likely to head from here? You can either read about it this morning in our Daily Edition of Economic Insights 2008, or wait until after the fact to find out, so… Stay tuned.
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Prior to March 1, 2008 the conforming loan limits were the same for 2008 as they were in 2007 the new conforming loan limit for the remainder of 2008 is 125% of the median price for the country in which you reside.
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Mortgage Bankers Association weekly new home loan
applications indices for the week ending 7/18/08
-Overall Index : 489.6 (Down 6.2% from 522.2)
-Purchase index : 335.6 (Down 6.7% from 359.7)
-Refinance index : 1,392.7 (Down 5.6% from 1,474.9)
(release date Wed. 7-23-08)
 
Latest Pre-Owned Home Sales reported by
The National Association of Realtors
May’s Annualized Sales Pace 4.99 million homes sold
(Up 2.0% from April’s revised 4.89 MM pace &
Down 15.9% versus May 2007 pace of 5.93 MM)
- NE Region 910,000 unit pace (Up 4.6% from 870,000)
- Midwest Region 1.16 MM unit pace (Up 5.5% from 1.10 MM)
- South Region 1.91 MM unit pace (Down 0.5% from 1.92 MM)
- West Region 1.02 MM unit pace (Up 2.0% from 1.0 MM)
Release Date 5-26-08
 
Latest New Home Sales reported by US Commerce Dept.
May’s Annualized Sales Pace 512,000 homes
(Down 2.5% from April’s revised 525,000 unit pace &
Down 40.3% from May 2007's 857,000 unit pace)
NE Region 35,000 unit pace (Down 7.9% from 38,000 &
Down 57.8% from May 2007's revised 83,000 unit pace)
Midwest Region 82,000 unit pace (Up 5.1% from 78,000 &
Down 42.3% from May 2007's revised 142,000 unit pace)
South Region 281,000 unit pace (Up 0.4% from 280,000 &
Down 35.0% from May 2007's 432,000 unit pace)
West Region 114,000 unit pace (Down 11.6% from 129,000 &
Down 43.0% from May 2007's 200,000 unit pace)
(release date 6-25-08)
 
Latest New Housing Starts reported by H.U.D. & Commerce
June’s Annualized Starts: 1.066 MM units
(Up 9.1% from the revised 1,008,000 for May
and Down 26.9% from the 1.458 million for June 2007)
Release date 7/17/08
New Residential Permits for June were 1.091 MM
Up 11.6% from the revised 978,000 for May
and Down 23.9% from the 1.433 million for June 2007.
Release date 7/17//08
Latest National Assn. of Home Builders’ Index
July 2008 Overall index = 16 (Down from 18)
Present Sales = 16 (Down from 17)
Plans to Buy Within 6 Months = 23 (Down from 27)
Buyer Traffic = 12 (Down from 16)
Release date 7-16-08
Home Loan Interest Rates Weekly Closing Level
(as defined by the Fannie Mae delivery rate, the largest buyer and owner of fixed rate home loans in the United States.)
Week Ending 7/18/08 = 6.35%
Up from 6.05% for the week ending 7/11/08
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