According to a 2006 study conducted by Wholesale Access, 67.9% of mortgage brokers and direct lenders use Point, a figure greater than all other mortgage automation applications combined.
Provided by Sigma Research, Inc.
Monday, 8/31/09 4:30 PM
The DJIA ended -48, NASDAQ -20, S&P -8. 10 yr note +10/32 3.41% -4 BP. Mortgage prices +9/32 on 30s, +10/32 on FHAs and +8/32 on 15s.
The bellwether 10 yr finally broke (slightly) its resistance levels at 3.44%/3.42% this afternoon when it traded briefly at 3.40%. The stock market ended weaker even on the better Chicago PM data; mortgages today outperformed treasuries. ON the whole however, it was another low volume session with not much volatility for a change.
“It’s a little bit premature to be so confident that you want to pull all these things back right now, because the economy still isn’t growing very fast and we do have a very high unemployment rate." Comment frm NY Fed Pres Dudley this morning on CNBC regarding the potential of backing off from the Fed buying more MBSs to fill the $1.25T commitment it made last March. Mortgage markets liked his thinking, which is contrary to the wild-man Fedster Jeffery Lacker (Richmond Fed) who last week shook thins up saying the Fed may not need to keep buying MBSs. Lacker and St Louis Fed Pres Bullard were both talking last week like the economy and particularly housing is out of the woods and the economy has been healed. Love the enthusiasm even if it appears premature. Dudley said it’s “more likely than not” that policy makers will follow through with the full amount of purchases. While he hasn’t decided how he would vote, investors’ expectations will influence his opinion on the issue, he said. “The market expects us to complete these programs, to do the full amount,” he said. “To contradict that market expectation is a pretty high hurdle.”
Dudley is the first NY Fed Pres that did a live interview when on CNBC this morning. Inflation concerns are out there, even if just for the sake of saying 'we were on it way back when'; not likely anything we need to worry about over the next six to 12 months, but markets need continual confirmation that the Fed does have a plan to fight it off when they see that light at the end of the tunnel. Dudley is on board that the economy has bottomed but isn't buying into the Fed acting prematurely to cut off increases in its balance sheet now. His remarks are welcome in our view that mortgage rates will likely fall more in Sept.
This morning's report on the manufacturing situation in the mid-west was yet another report from that sector that has beaten market expectations. The overall index now sits at 50, right on the pivot point; below 50 contraction, above it expansion. New orders in the data were at 52.5, up frm 48.0 in July. Tomorrow the Nat'l ISM manufacturing data at 10:00; expectations are for the overall index at 50.2 frm 48.9, we will look at the new orders and employment as well as the overall to confirm the regional reports that have been out in the past week.
The bond market isn't being pulled into the view that the global economic recovery anytime soon; even ignoring Bernanke's comments and statement from the IMF. Based on the decline in rates over the past few weeks, from 3.75% to 3.40% traders don't think the Fed is anywhere close to increasing interest rates. That said, I would not bet the bank on traders' opinions, traders have a time frame measured in days and week's. Although the world is looking for a retracement in stocks, at the moment there is almost a universal view that its all over for the recession. One reason to question that outlook; Jerry Granville was on CNBC this morning saying the stock markets are going to rally hard with no real pullback for the next two years. Granville's track record is not good as far as I am concerned.
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