http://MikesDailyMarketReport.com: Pending Home Sales slowed in February, as it's MoM dropped from 5.3% to 2.4%. This number will most likely continue to decline as we all experienced a major and quick shift in the Market over the coronavirus. Stock Market is Up today. The coronavirus is having a major impact and we're seeing a very large amount of infected and deaths from it. MBS is Up 44bps, but has been shrinking a bit as I've been putting this report together for you and trying to remain above the ceiling of resistance. MBS is being propped up from the Fed's daily purchases (QE), which they're trying to help the Market, but it's inadvertently hurting Lenders in the process because of their Margin calls. We're still not seeing pricing that correlates with the MBS Market, and many loan programs (like Jumbos and Non QM) have dried up; and the Government loans (FHA, VA and USDA) have tougher restrictions (like higher minimum fico scores and lower Debt-to-income ratios). This will be worked thru, but it's going to take some time to get this sorted. Meanwhile, Yields have fallen some more, down to 0.60%.
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