Fri. 2/3/12, day 34 with 332 days remaining in 2012
Quotes below as of 10:00 AM (EDT)
- Freddie Mac 10 day delivery rate : 3.23%
- Long Bond Yield : 3.14%
- Benchmark 10-Year T: 1.92%
-30Y/Fannie yield spread : 9 BP
-10Y/Fannie yield spread : 131 BP
- 30-Day moving average for delivery rate : 3.31%
-
10-Day Delivery rate a month ago today: 3.41%
- 10-Day Delivery rate a year ago today: 4.58%
* * * 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.
“The economy will not recover without a housing market recovery.” 2/2/12-Ben Bernanke in testimony before Congress
Well, sooner or later there was bound to be a more positive employment report and that it would impact home loan rates as a consequence. The stunning response to the release of the employment report this morning is likely going to give way to the realities of the economic condition in our opinion. The 8.3% unemployment rate looks good. It is the lowest unemployment rate since before Obama took office.
Net new job creation exceeded expectations; average hourly earnings rose in line with expectations and the average workweek was nominally better than expectations. Factory orders came in lower than expected and the ISM’s service sector index came in better than expected. We will elaborate on these releases in today’s daily newsletter.
The delivery rate (DR) opened the trading session at 3.23% at 8:30 AM EST, which was a paltry 7 BP higher than yesterday’s close. 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 1/27/12
-Overall Index 557.6: Down 2.9% versus prior week &
up 40.21% versus the same week a year ago.
-Purchase index 154.3: Down 1.7% versus prior week &
Down 7.86% versus the same week a year ago.
-Refinance index 2,861.8: Up Down 3.6% versus prior week &
Up 79.85% versus the same week a year ago.
(release date Wed. 2-1-12)
 
Latest Pre-Owned Home Sales reported by
The National Association of Realtors
December’s Annualized Sales Pace 4.61 million homes sold
(Up 5.0% from November’s 4.39 MM pace &
Up 3.6% versus December 2010 pace of 4.45 MM)
- NE Region 620k unit pace (Up 10.7% from 510,000 in
November and Up 3.3% from December 2010)
- Midwest Region 1.04 MM unit pace (Up 8.3% from 960k in November and Up 9.5% from December 2010)
- South Region 1.76 MM unit pace (Up 2.9% from 1.71 MM in November and Up 3.5% from December 2010)
- West Region 1.19 MM unit pace (Up 2.6% from 1.16 in November and Dpwn 0,8% from December 2010)
Release Date 1-20-12
 
Latest New Home Sales reported by US Commerce Dept.
November’s Annualized Sales Pace 315,000 homes in contract (not closed) (Up 9.8% from October’s revised 310,000 pace &
Up 9.8% from November 2010’s 287,000 unit pace)
NE Region 14,000 unit pace (Down 26.3% from October’s 19,000 pace & Down 30.0% from November 2010’s pace)
Midwest Region 57,000 unit pace (Up 7.5% from October’s 53,000 & Up 62.9% from November 2010’s pace)
South Region 175,000 unit pace (Up 12.9% from October’s 155,000 & Up 6.7% from November 2010’s pace)
West Region 69,000 unit pace (Down 16.9% from October’s 83,000 & Up 1.5% from October November’s pace)
(release date 12-23-11)
Latest New Housing Starts reported by H.U.D. & Commerce
December’s Annualized Starts: 657,000 units
(Down 4.1% from the revised 685,000 for November
and Up 24.9% from the 526,000 for December 2010)
Release date 1/19/12
New Residential Permits for December were 679,000
Down 0.1% from the revised 680,000 for November
and Up 7.8% from the 630,000 for December 2010
Release date 1/19/12
Latest National Assn. of Home Builders’ Index
Jan 2012 Overall index = 25 (Up 4 from 21 in Dec)
Present Sales = 25 (Up 3 from 22 in Dec)
Plans to Buy Within 6 Months = 29 (Up 3 from 26 in Dec)
Buyer Traffic = 21 (Up 3 from 18 in Dec)
Release date 1/18/12
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 2/3/12 = 3.23%; Down 4 BP
from 3.27% for the week ending 1/27/12
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