Friday, September 11, 2020

Daily Market Report 9/11/20 Today, we received data on inflation for Consumers with the Consumer Price Index, which had a MoM of 0.4% in Aug.; as did it's Core CPI (excluding food and energy).  The Core CPI's YoY rose from 1.6% to 1.7%.  We'll keep an eye on this data, as we'll want it to plateau at some point, and not go out of control.  Meanwhile, there is light trading today in Stocks, which are all currently in Positive Territory.  There is still some correction/re-balancing going on (especially with Tech Stocks); and Investors are growing pessimistic on a new Stimulus Bill prior to the November elections, as the Democrats defeated a Republican Bill in the Senate (this was expected).  MBS went thru a Bond Rollover today.  On the chart, it will appear to be lower; but it doesn't affect our pricing, as it's just a reset for the MBS on October's purchases of these MBS bundles.  We had improvement from yesterday, as it was down 9bps when we did the video, which reversed and closed up 5 or 9bps in positive territory.  Today, we're currently Up 11bps.  Coupled with yesterday's improvement and today's current standing, Lenders are poised to price Mortgage Rates better today.  One caveat to mention is the new FHFA g-fee that was re-scheduled to December will be priced into loans next week.  This is a 0.5% point fee that they elected to add onto any refinance with conventional loans (Fannie Mae or Freddie Mac).  This does not affect purchase transactions or other loan programs (like FHA, VA, USDA, Jumbo, etc...).  The new fee will increase the Mortgage Rates by approximately 0.25% to 0.375% to the interest rate.  If you're floating or on the fence, then I'd suggest hurry and lock prior to this fee being added on.  On the flip side, we have Yields, which have weakened a bit; and currently sits around it's 25 DMA at 0.67%.

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