MBS MID-DAY: 9/26/2011
By:
Matthew Graham
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MBSonMND: MBS MID-DAY
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Pricing as of 11:03 AM EST |
Morning Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBSonMND Dashboard
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10:08AM :
ECON: New Home Sales Fall 2.3 pct in August
(Reuters) - New single-family home sales in the United States fell in August to a 6-month low but the supply of homes available on the market dropped to a record low.
The Commerce Department said on Monday sales slipped 2.3 percent to a seasonally adjusted 295,000-unit annual rate, the lowest since February and in line with analysts' forecasts. The government raised its estimate for July's sales pace to 302,000 units from the previously reported 298,000 units.
Economists polled by Reuters had forecast a 295,000-unit rate in August. In the year through August, new home sales rose 6.1 percent. (Reporting by Jason Lange; Editing by James Dalgleish)
The Commerce Department said on Monday sales slipped 2.3 percent to a seasonally adjusted 295,000-unit annual rate, the lowest since February and in line with analysts' forecasts. The government raised its estimate for July's sales pace to 302,000 units from the previously reported 298,000 units.
Economists polled by Reuters had forecast a 295,000-unit rate in August. In the year through August, new home sales rose 6.1 percent. (Reporting by Jason Lange; Editing by James Dalgleish)
8:58AM :
ALERT:
MBS Open Surprisingly Close to Friday's Last Levels
Given the sell-off that took place on Friday, the anticipation of this weekend's G20 talks, and the fact that prices have been at historical extremes, it's somewhat of a surprise to see both 10yr yields and MBS trading fairly close to Friday's closing levels.
- Fannie 3.5's are up 3 ticks at 102-28
- 10yr yields are about a bp higher at 1.84
- S&P Futures are higher, but look to have some troubles getting through 1144's. Two bounces there have helped 10yr yields bounce as well.
With only New Home Sales on tap at 10am, today is officially the light day this week in terms of scheduled economic reports. The threat of a fresh round of auction supply looms large, as well as an increasing amount of economic data and events through the rest of the week.
Rate sheets should be similar to improved vs Friday's latest, and should not be out much later than usual if the current pace of market movements continues.
- Fannie 3.5's are up 3 ticks at 102-28
- 10yr yields are about a bp higher at 1.84
- S&P Futures are higher, but look to have some troubles getting through 1144's. Two bounces there have helped 10yr yields bounce as well.
With only New Home Sales on tap at 10am, today is officially the light day this week in terms of scheduled economic reports. The threat of a fresh round of auction supply looms large, as well as an increasing amount of economic data and events through the rest of the week.
Rate sheets should be similar to improved vs Friday's latest, and should not be out much later than usual if the current pace of market movements continues.
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBSonMND Dashboard
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Jeff Anderson : "If DURP on the 1st I'd say you shouldn't have a problem."
Jim Whitehead : "Doing DURP on the 1st. No problem there. It's the SAG I'm unsure of."
Matthew Graham : "RTRS- US HOMES FOR SALE AT END OF AUG 162,000 UNITS, RECORD LOW, VS JULY 164,000 UNITS "
Matthew Graham : "RTRS - US AUG SINGLE-FAMILY HOME SALES 295,000 UNIT ANN. RATE (CONS 295,000) VS JULY 302,000 (PREV 298,000) "
Jeff Anderson : "Is it just a conventional or can you do a Fannie DURP of Freddie Open Access, it shouldn't be an issue. Not positive on the straight conventional as the CLTV max is 95%."
Matthew Graham : "yeah jeff, looks pennant-ish, "
Jim Whitehead : "Does anyone know the liklihood of Citibank approving a Subordination when the CLTV is about 100% (assuming all other aspects of the loan are very good)?"
Jim Whitehead : "Citibank HELOC subordination question. "
Bert Swyers : "no, you cant streamline with an appraisal anynmore, you have to pay costs with ysp or borrower funds"
Jeff Anderson : "Pennant forming, MG?"
Brayden Alexander : "FHA Streamline question. Home purchases in Feb 11. Am I required to use SP for 12 months, or is a new appraisal allowed to absorb closing cost/escrows."
Victor Burek : "i heard a few more politicians promising no bk"
Jeff Anderson : "Was there any real news out of Europe over the weekend? Or just progress on progress to have talks, progressively?"