Good morning and happy hump day!  We had a big news day today, with Mortgage Applications for the week ending July 15, then Existing Home Sales for June.  Mortgage Applications were weak at -6.3%.  That makes negative numbers in 14 of the past 20 weeks! The economists were looking for -1.1% on Existing Home Sales after a -3.4% release in May.  They were disappointed further with a -5.4% reading there today.

Bonds today are higher in price with 10yr T-Notes +9/32 to yield 2.99%.  In MBS FNMA 30yr 4.50% are +4/32 to $100-07, which is a 4.47% yield and +147 basis points to the 9.4yr treasury curve.  Have a great day and call or email with your MBS and whole loan inquiries.

Cherry Picks

ARMS / FLOATERS

Cost
$103-28
$32mm+ Fannie Mae 7/1 ARM 3.299%, #BM7014, 5/47 stated final
Average Life
3.9 yr
Yield
3.94%
Speed
20% CPR
Spread
+87/I curve
Coupon
3.299%
MTR
8
Loans
1,400
Caps
Periodic 5/2/5, Lifetime 7.726%
Floor
1.713%
1 Yr. Libor
+1.713%
WAM
276
Factor
.9780

10 Year Fixed

Cost
$97-24
$3mm+ Fannie Mae 10yr am 2.50%, #MA4636, 6/32 stated final
Average Life
3.8 yr
Yield
3.12%
Speed
236 PSA
Spread
+5/I curve
Coupon
2.50%
# Loans
744
Origination
2022
Type
Fannie Major
WAM
116
Factor
.9784

15 Year Fixed

Cost
$93-28
$20mm Fannie Mae Dwarf 2.00%, #MA4602, 5/37 stated final
Average Life
5.9 yr
Yield
3.17%
Speed
124 PSA
Spread
+10/I curve
Coupon
2.00%
# Loans
4,004
Origination
2021/2022
Type
Fannie Major
WAM
176
Factor
.9754

20 Year Fixed

Cost
$95-08
$18mm+ Fannie Mae 20yr am 3.00%, #MA4643, 5/42 stated final
Average Life
7.3 yr
Yield
3.78%
Speed
129 PSA
Spread
+69/I curve
Coupon
3.00%
# Loans
3,211
Origination
2021/2022
Type
Fannie Major
WAM
236
Factor
.9877

30 Year Fixed

Cost
$90-20
$50mm Fannie Mae 30 yr am 2.50%, #MA4652, 6/52 stated final
Average Life
10.2 yr
Yield
3.69%
Speed
103 PSA
Spread
+65/I curve
Coupon
2.50%
# Loans
778
Origination
2020/21/22
Type
Fannie Major
WAM
357
Factor
.9939

Agency CMBS

Cost
$97-04
$60mm+ FNMA 10/9.5 DUS #BS5564, 3.14% coupon, 6/2032 stated final
Average Life
9.9yr
Yield
3.53% + 45/swaps
Speed
0% CPY
Coupon
3.14%
Call Protection
113mo Yield Maintenance
Tier
2
GEO
VA
DSCR
--
LTV
58.4%
OCC
85.7%
Interest Only Until
83 Months
Factor
1.0000

Agency CMO – 3 Year

Cost
$96-20
$3mm Freddie Mac "Pass-Thru" 2.50%, FHR 5200 NT, 4/35 stated final
Average Life
4.6 yr
Yield
3.29%
Speed
138 PSA
Spread
+25/I curve
Collateral
Mod Seas Fannie 15yr 2.50%
Coupon
2.50%
Band
Pass Thru
Avg Life w/ rates +300
4.9 yr
Factor
.9167

Agency CMO – 5 Year

Cost
$98-00
$21mm+ Fannie Mae "Pass-Thru" 3.00%, #FNR 17-24 E, 4/47 stated final
Average Life
4.6 yr
Yield
3.39%
Speed
150 PSA
Spread
+35/I curve
Collateral
FNMA 30yr Seasoned 4.50%
Coupon
3.00%
Band
Pass-Thru
Avg Life w/ rates +300
6.2 yr
Factor
.2912

Agency CMO – Long End

Cost
$81-26
$10mm Freddie Mac "Sequential" 2.00%, #FHR 5142 BD, 1/51 stated final
Average Life
14.0 yr
Yield
3.74%
Speed
82 PSA
Spread
+58/I curve
Collateral
New Freddie Jumbo 30yr 2.00%
Coupon
2.00%
Band
Sequential
Avg Life w/ rates +300
14.2 yr
Interest Only until
8/28
Factor
1.0000

Jim Tait is a registered representative with and offers securities through Hanover Securities, Inc. (Hanover), Member FINRA & SIPC. Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Securities that may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results.

 This information from Hanover Securities is for your private use and does not constitute an offer or solicitation with respect to the sale of any security. This information was obtained from sources we believe to be reliable but we do not represent that it is accurate or complete, and it should not be relied on as such. Certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in securities identical or related to those identified herein. 

Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Loans and/or Securities which may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results. This information from Banes Capital Group (BCG) and/or Hanover Securities is for your private use, and was obtained from sources we believe to be reliable. However, we do not represent that this information is accurate or complete, and it should not be relied on as such. This information is for institutional investors only, and as such certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in loans or securities identical or related to those identified herein. 

The pricing of loans or any Level II or III asset is inherently an exercise in quantifying uncertain variables. As such, great care should be taken when pricing loans for reporting purposes. The information included herein should never be taken as the sole method, or even a method to be relied on, for the pricing of loans or other Level II or III assets as this is for informational purposes only.