Last week in review

Forwarded exclusively by:	Bob Rosenbaum The Rosenbaum Lending Group Office: (703) 879-5200 Email: Bob@MyTalentedLender.com website: www.MyTalentedLender.com NMLS#: 649782
Monday, September 23, 2013
What Happened to Rates Last Week? Mortgage backed securities (MBS) gained +130 basis points from last Friday's close which caused 30 year fixed rates to move to their lowest levels in the past 30 days. Mortgage backed securities were trading in a very narrow range until Wednesday's Federal Reserve Open Market Committee Meeting (FOMC). And they shocked bond traders by electing not to taper at that meeting.  While, our own internal survey showed that only 20% of over 4,000 originators polled expected a taper announcement, over 80% of bond traders and hedging operators did expect a taper announcement.  So, the fact that they made no taper announcement was unexpected by traders and a shock to the system.  As a result - MBS shot up just over +80 BPS just after the FOMC statement was released and then another +25BPS after Bernanke's press conference. Keep in mind that the Fed does not have to wait until their next meeting in December to take action.  The made it very clear that it is already part of their program - that they can change the size and nature of their asset purchase program ANY time that they want.  This has traders focused in on any economic news that would give the Fed enough ammunition to adjust their monthly bond purchases this year.  And this week we have some very big economic reports such as GDP, Durable Goods Orders and Consumer Confidence.  All of which will be very closely watched by traders.
Big enough to compete, small enough to care. To unsubscribe from TBWS Rate Alert e-mails, please click here. Please do not reply directly to this e-mail. TBWS Rate Alert will not receive any reply message. For questions or comments, visit our Forums or Contact Support via SupportTeam@ratealert.com.

Forwarded exclusively by:	Bob Rosenbaum The Rosenbaum Lending Group Office: (703) 879-5200 Email: Bob@MyTalentedLender.com website: www.MyTalentedLender.com NMLS#: 649782
Friday, September 20, 2013
What happened yesterday? Mortgage backed securities (MBS) lost -11 basis points from Wednesday's close which caused 30 year fixed rates to move slightly higher. Initial Jobless Claims were much lighter than expected and the prior period was not revised upward as much as the market expected.  But traders largely ignored this report because the numbers are still tainted by the potential under reporting by two states. Existing Home Sales surprised to the upside coming in at 5.48 million units vs. market expectations of 5.25 million units.  Manufacturing in the Philly district was stronger than expected and the Leading Economic Indicators beat expectations.  The combined impact of these three reports was to pressure MBS lower. The stock market (DOW -40.39) and the MBS market (FNMA 4.0 -11BPS) once again moved in the same direction as they both sold off.
Big enough to compete, small enough to care. To unsubscribe from TBWS Rate Alert e-mails, please click here. Please do not reply directly to this e-mail. TBWS Rate Alert will not receive any reply message. For questions or comments, visit our Forums or Contact Support via SupportTeam@ratealert.com.

Refi?

Yep - I said "Refi" ... If you missed the boat earlier - you might be in luck. 

Mortgage Backed Securities are up on the Fed's news that they will not begin tapering at this time.  

Your best bet for refinance is to consider going from a 30 to a 15 year note.  That will get you the most bang for your buck.  

If you're in a VA loan - call me today about lowering your rate/payment with a Streamline Refinance (no income, no assets!).

Bring it on!  I'm ready to help as many people as I can.  

Robert F. Rosenbaum, Jr. 

The Rosenbaum Lending Group
1st Portfolio Lending Corp.
8300 Boone Blvd., Ste 200

Vienna, VA 22182
(703) 879-5200  Office
(703) 608-1110  Cellular
(703) 891-9815  Direct Fax
RRosenbaum@FirstPortfolio.com
http://www.MyTalentedLender.com 
NMLS License: 649782
Notary Public

Kuntri Yonkwan

Loan Processor

(571) 327-2152 Office

(703) 564-9121 Fax

kyonkwan@firstphc.com

Please click HERE for our secure online application. 

It’s a good life!

The Fed meets today ...

After showing negative numbers in the past month or so, the Mortgage bankers Association reported that its Market Composite Index, a measure of total loan application volume, rose by 11.2% in the latest survey. The refinance index jumped by 18% while the purchase index rose by 3%. The recent rise in home loan rates is one of the main reasons for the recent drop off in applications.

Over in housing news, the Commerce Department reported that Housing Starts rose by 0.9% from July to August to an annual rate of 891,000 units. That was below the 910,000 that was expected - July was revised lower to 883,000 from 896,000. Building Permits, a sign of future construction, fell by 3.8% to 918,000 units, below the 943,000 expected. However, there was a surge in single-family Permits, a sign that the housing recovery is continuing.

The Federal Reserve's long awaited monetary policy statement will be released this afternoon at 2:00pm ET. There is no chance of the Fed raising the benchmark Fed Funds Rate, currently at 0.25%. However, the Fed can start to ease back on the $85 billion per month in Bond purchases. The Fed could announce a $10 billion to $15 billion reduction. The statement will be accompanied by the Fed's Economic Projections (forecasts) and a press conference with Fed Chairman Bernanke will follow at 2:30pm ET.

Market update - rates rise

Forwarded exclusively by:	Bob Rosenbaum The Rosenbaum Lending Group Office: (703) 879-5200 Email: Bob@MyTalentedLender.com website: www.MyTalentedLender.com NMLS#: 649782
Wednesday, September 04, 2013
What happened yesterday? Mortgage backed securities (MBS) lost -35 basis points from Friday's close which caused 30 year fixed rates to move upward.  In fact, yesterday's sell off completely erased all of the prior week's improvement. MBS sold off immediately after the release of the ISM Manufacturing data.  The market was expecting a reading of 54.0 and it came in at 55.7. A reading above 50 shows economic expansion (which is negative for your pricing) As a result, the benchmark FNMA 4.0 September coupon "tanked" to their worst levels of the day of -63BPS at 10:36EDT. Construction Spending was also better than market expectations (0.6% vs 0.3%) which was also negative for your pricing. But MBS climbed off of their bottom and started to regain some (but not all) of their early morning losses, rising from -63BPS to -39BPS on news that the Republican House Leader would support any action by President Obama against Syria.  This temporarily gave some momentum to the speculation that Obama will get the support he needs from Congress and then launch a strike against Syria.
Big enough to compete, small enough to care.