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Mortgage Trends & Rate Activity...MARKET RATE INDICES Daily Market Briefing: Mortgage Trends & Rate...
Transcript of Mortgage Trends & Rate Activity...MARKET RATE INDICES Daily Market Briefing: Mortgage Trends & Rate...
DAILY MARKET BRIEFING:
Mortgage Trends & Rate Activity
MARKET RATE INDICES
Daily Market Briefing: Mortgage Trends & Rate Activity
Market Index Current Rate 1-Day Delta 7-Day DeltaDelta Since
2/18/20
30-YR Conforming 2.98%
30-YR Jumbo 3.25%
30-YR FHA 3.09%
30-YR VA 2.71%
Source: Optimal Blue Mortgage Market Indices (OBMMI) – optimalblue.com/obmmi2
2.6%
2.8%
3.0%
3.2%
3.4%
3.6%
3.8%
4.0%
4.2%
Rates were quiet across the
board on Friday.
30-YR CONFORMING TO 10-YR TREASURY RATE SPREAD
Market Index Current Value 1-Day Delta 7-Day DeltaDelta Since
2/18/20
10-YR Treasury 0.59%
30-YR Conforming 2.98%
10-YR to 30-YR Spread 2.39%
Source: Optimal Blue Mortgage Market Indices (OBMMI) – optimalblue.com/obmmiU.S. Department of the Treasury – treasury.gov
3
Daily Market Briefing: Mortgage Trends & Rate Activity
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
The 30-year conforming to
10-year treasury spread was
virtually unchanged yesterday.
2.9%
3.1%
3.3%
3.5%
3.7%
3.9%
4.1%
0
50
100
150
200
250
300
350
400
450
500
RATE LOCK VOLUME BY LOAN PURPOSE
Source: Optimal Blue Mortgage Market Indices (OBMMI) – optimalblue.com/obmmiOptimal Blue Market Analytics – optimalblue.com/market-analytics
Market Volume Index Current Value 1-Day % Change 7-Day % Change% Change Since
2/18/20
Purchase 85
Cash-out Refinance 33
Rate-Term Refinance 124
Total 241
Refinance Share* 64.9%
4
(Total Volume indexed to 100 on 1/2/2020)
OBMMI 30-YR Conf.
Daily Market Briefing: Mortgage Trends & Rate Activity
*Refinance Share changes reflect inter-period delta
Lock volume dropped 20-25%
for all loan purposes on Friday.
MIX OF BUSINESS BY LOAN PRODUCT
Source: Optimal Blue Market Analytics – optimalblue.com/market-analytics5
Loan Product Mix Current Value 1-Day Delta 7-Day DeltaDelta Since
2/18/20
Conforming 72.6%
Non-Conforming 7.1%
FHA 8.7%
VA 10.8%
USDA 0.9%
Daily Market Briefing: Mortgage Trends & Rate Activity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Conforming loans lost over 250
bps in share on Friday,
primarily to non-conforming
(up 112 bps), FHA (up 43 bps),
and VA (up 98 bps).
PURCHASE & REFINANCE PULL-THROUGH RATES
Daily Market Briefing: Mortgage Trends & Rate Activity
Pull-through Rate Current Rate 1-Day Delta 7-Day DeltaDelta Since
2/18/20
Purchase Pull-through 80.3%
Refi Pull-through 70.5%
Source: Optimal Blue Hedge Analytics – optimalblue.com/hedge-analytics6
60%
65%
70%
75%
80%
85%
90%
(5-Day Moving Average)
Purchase pull-through was
down 30 bps on Friday, while
refi pull-through gained 89
bps.
BEST EFFORTS TO MANDATORY DELIVERY SPREADS
Daily Market Briefing: Mortgage Trends & Rate Activity
Best Efforts vs. Mandatory Current Spread 1-Day Delta 7-Day DeltaDelta Since
2/18/20
30-YR Conforming 52 bps
15-YR Conforming 42 bps
30-YR Government 38 bps
7
bps
20 bps
40 bps
60 bps
80 bps
100 bps
120 bps
140 bps
160 bps
180 bps
(5-Day Moving Average)
Source: Optimal Blue Hedge Analytics – optimalblue.com/hedge-analytics
Best efforts to mandatory spreads
were quiet on Friday and are drifting
lower as the market continues to
solidify. These spreads are almost
back to "normal," a signal that we
are maintaining a steady recovery in
secondary market prices. Combined
with higher volume and margins,
these spreads contribute to a major
improvement in gains for most
lenders.
WHOLE LOAN DELIVERY TO 30-YR TBA SPREADS
Daily Market Briefing: Mortgage Trends & Rate Activity
8
(700 bps)
(600 bps)
(500 bps)
(400 bps)
(300 bps)
(200 bps)
(100 bps)
bps
100 bps
Source: Optimal Blue Hedge Analytics – optimalblue.com/hedge-analytics
(All Spreads indexed to 0 on 2/3/2020)
Whole Loan vs. 30-YR TBA Current Spread 1-Day Delta 7-Day Delta 4-Week Delta
Best Ex vs. UMBS 3.0 (223 bps)
Best Ex vs. GNMA 3.0 (84 bps)
Cash Window vs. UMBS 3.0 (128 bps)
Best Ex prices gained 2 bps versus
UMBS 3.0 and 126 bps versus GNMA
3.0 Friday. Cash window spreads
versus the UMBS 3.0 gained 23 bps.
We continue to see gradual
improvement in spreads. This
dynamic is significantly enhancing
gains over already elevated margins
and BE/Mand spreads, which are
combining to generate record
earnings for most lenders.
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Daily Market Briefing: Mortgage Trends & Rate Activity
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Daily Market Briefing: Mortgage Trends & Rate Activity
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