Vital Statistics:
|
Last
|
Change
|
Percent
|
|
|
S&P Futures
|
1758.0
|
-5.0
|
-0.28%
|
|
Eurostoxx Index
|
3032.3
|
-28.9
|
-0.94%
|
|
Oil (WTI)
|
94.33
|
-0.3
|
-0.31%
|
|
LIBOR
|
0.238
|
0.000
|
-0.17%
|
|
US Dollar Index (DXY)
|
80.59
|
0.032
|
0.04%
|
|
10 Year Govt Bond Yield
|
2.62%
|
0.02%
|
|
|
Current Coupon Ginnie Mae TBA
|
106.3
|
0.3
|
|
|
Current Coupon Fannie Mae TBA
|
105.2
|
-0.1
|
|
|
RPX Composite Real Estate Index
|
200.7
|
-0.2
|
|
|
BankRate 30 Year Fixed Rate Mortgage
|
4.22
|
Markets are lower this morning on no real news. Bonds and MBS are down. Later this morning, we will get the ISM non-manufacturing survey and the IBD / TIPP economic optimism report.
The FHFA banned
fees on forced placed
insurance yesterday. Ultimately this move will result in a little less revenue
for servicers.
Did FHA hike
premiums just a little too much? It appears so. Wells,
Bank of America and TD Bank are now offering loans with as low as a 5% down payment, with
a requirement to have PMI until the house has 20% equity (this was the big
thing FHA changed - now PMI has to exist for the life of the loan, regardless
of the equity). In other words, Wells, B of A, and TD are offering a product
similar to old FHA loans. Rising house prices make these worth the gamble. The
government has been saying it wants to crowd in private capital; perhaps this
is an intended consequence.
The CFPB will hold a hearing in Boston on Wednesday, November 20th
at 11:00 am. Richard Cordray will be speaking as well as representatives from
consumer groups, industry and the public. These hearings are usually used to
announce new initiatives, and we may get the TILA-RESPA integrated disclosures
final rule.
What is driving
the growth of home prices in the Bay Area? Chinese money. Bay Area house
prices are at all time highs, yes, even higher than the bubble years. Roughly
7% higher.
Brent Nyitray, CFA
Director of Capital Markets
iDirect Home Loans
National Asset Direct
Dellacamera Capital Management
1010 Washington Blvd, 6th Floor
Stamford, CT 06901
203-817-3614 (w)
917-841-4938 (c)
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