Good morning and happy hump day! We continued with scheduled housing news today in the form of Mortgage Applications for the week ending August 12. It was coming off a +0.2% release for the prior week and got back on the negative path with a -2.3% release this morning. Today’s top story this morning is that home-sale cancellations are soaring in July as borrowing costs drive buyers away from the market.

Today, bonds are lower in price, with the 10yr T-Note -23/32 yielding 2.89%. MBS are following treasuries, with FNMA 30yr 4.50% -11/32 to $100-23, which is a 4.26% yield and +116 basis points to the 4.5yr treasury curve. Everyone, please have a great day, and call or email with your MBS and whole loan inquiries.

Cherry Picks

ARMS / FLOATERS

Cost
Average Life
Yield
Speed
Spread
Coupon
MTR
Loans
Caps
Floor
1 Yr. Libor
WAM
Factor
$103-20
2.7 yr
3.54%
30% CPR
+36/I curve
3.299%
8
1,361
Periodic 5/2/5, Lifetime 7.732%
1.715%
+1.715%
275
.9295
$32mm+ Fannie Mae 7/1 ARM 3.299%, #BM7014, 5/47 stated final

10 Year Fixed

Cost
Average Life
Yield
Speed
Spread
Coupon
# Loans
Origination
Type
WAM
Factor
$98-08
3.7 yr
2.98%
244 PSA
-11/I curve
2.50%
743
2022
Fannie Major
115
.9676
$3mm+ Fannie Mae 10yr am 2.50%, #MA4636, 6/32 stated final

15 Year Fixed

Cost
Average Life
Yield
Speed
Spread
Coupon
# Loans
Origination
Type
WAM
Factor
$94-16
5.8 yr
3.06%
128 PSA
+13/I curve
2.00%
3,996
2021/2022
Fannie Major
175
.9674
$20mm Fannie Mae Dwarf 2.00%, #MA4602, 5/37 stated final

20 Year Fixed

Cost
Average Life
Yield
Speed
Spread
Coupon
# Loans
Origination
Type
WAM
Factor
$97-00
7.0 yr
3.50%
143 PSA
+60/I curve
3.00%
3,205
2021/2022
Fannie Major
235
.9823
$18mm+ Fannie Mae 20yr am 3.00%, #MA4643, 5/42 stated final

30 Year Fixed

Cost
Average Life
Yield
Speed
Spread
Coupon
# Loans
Origination
Type
WAM
Factor
$92-12
9.6 yr
3.52%
109 PSA
+69/I curve
2.50%
32,734
2021
Fannie Major
346
.9194
$10mm Fannie Mae 30 yr am 2.50%, #MA4438, 10/51 stated final

Agency CMBS

Cost
Average Life
Yield
Speed
Coupon
Call Protection
Tier
GEO
DSCR
LTV
OCC
Interest Only Until
Factor
$98-15
9.8yr
3.37% + 48/swaps
0% CPY
3.14%
112mo Yield Maintenance
2
VA
--
58.4%
85.7%
82 Months
1.0000
$60mm+ FNMA 10/9.5 DUS #BS5564, 3.14% coupon, 6/2032 stated final

Agency CMO – 3 Year

Cost
Average Life
Yield
Speed
Spread
Collateral
Coupon
Band
Avg Life w/ rates +300
Factor
$96-11
4.7 yr
3.36%
191 PSA
+37/I curve
Seas Fannie 30yr 6.00% reperformers
2.50%
Pass Thru
5.4 yr
.8678
$3.8mm Freddie Mac "Pass-Thru" 2.50%, FHR 22-15 AB, 11/39 stated final

Agency CMO – 5 Year

Cost
Average Life
Yield
Speed
Spread
Collateral
Coupon
Band
Avg Life w/ rates +300
Factor
$98-17
5.3 yr
3.30%
172 PSA
+35/I curve
FNMA 30yr Seasoned 4.50%
3.00%
Pass-Thru
6.2 yr
.2886
$21mm+ Fannie Mae "Pass-Thru" 3.00%, #FNR 17-24 E, 4/47 stated final

Agency CMO – Long End

Cost
Average Life
Yield
Speed
Spread
Collateral
Coupon
Band
Avg Life w/ rates +300
Interest Only until
Factor
$81-26
13.8 yr
3.74%
83 PSA
+75/I curve
New Freddie Jumbo 30yr 2.00%
2.00%
Sequential
14.1 yr
7/28
1.0000
$10mm Freddie Mac "Sequential" 2.00%, #FHR 5142 BD, 1/51 stated final

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.