Good morning and happy hump day! We finally had the scheduled housing news published with Mortgage Applications for the week ending Sept. 10th. We’re coming off two down-weeks in a row that printed -1.9% and -2.4%, and three of the past four have likewise been down. We got back to moderately positive numbers with a +0.3% on this morning’s release. Mortgage re-financings were also released this morning and they were down 3.2%, which follows a -2.8% the week prior. The mortgage refi market just can’t seem to take advantage of these 3.00% 30yr lending rates!

The bond market today is mixed with the short-end down a tick and long bonds +12/32. Our closely watched 10yr T-Notes are -2/32 to yield 1.29%. In MBS land the Fannie 30yr 2.50% is +4/32 to $103-30 which delivers a 1.43% yield and +81 to the 4yr treasury curve. That’s all from us today, give us a shout if you need any help with loans or MBS!

Cherry Picks

ARMS / FLOATERS

Cost
$105-04
$21.070mm+ Fannie Mae 7/1 ARM 3.603%, #CA3138, 2/49 stated final
Average Life
2.1 yr
Yield
1.07%
Speed
30% CPB
Spread
+48/z curve
Coupon
3.603%
MTR
52
Loans
27
Caps
Periodic 5/2/5, Lifetime 8.602%
Floor
1.588%
1 Yr. Libor
+1.588%
WAM
328
Factor
.3073

10 Year Fixed

Cost
$104-04
$4mm+ Fannie Mae 10yr am 2.00%, #MA4368, 5/31 stated final
Average Life
3.0 yr
Yield
.58%
Speed
391 PSA
Spread
+13/I curve
Coupon
2.00%
# Loans
2,184
Origination
2021
Type
Fannie Major
WAM
113
Factor
.9487

15 Year Fixed

Cost
$104-00
$5mm Fannie Mae Dwarf 2.00%, #MA4329, 5/36 stated final
Average Life
4.2 yr
Yield
1.00%
Speed
282 PSA
Spread
+32/I curve
Coupon
2.00%
# Loans
19,960
Origination
2021
Type
Fannie Major
WAM
173
Factor
.9578

20 Year Fixed

Cost
$102-28
$5mm+ Fannie Mae 20yr am 2.00%, #MA4446, 10/41 stated final
Average Life
5.3 yr
Yield
1.41%
Speed
252 PSA
Spread
+53/I curve
Coupon
2.00%
# Loans
4,178
Origination
2021
Type
Fannie Major
WAM
239
Factor
1.0000

30 Year Fixed

Cost
$104-00
$10mm Fannie Mae 30 yr am 2.50%, #MA4438, 10/51 stated final
Average Life
5.3 yr
Yield
1.66%
Speed
313 PSA
Spread
+80/I curve
Coupon
2.50%
# Loans
25,656
Origination
2021
Type
Fannie Major
WAM
359
Factor
1.0000

Agency CMBS

Cost
$101-26
$6.0mm+ FNMA 11.5/10.5 DUS #BS2692, 1.89% coupon, 12/2032 stated final
Average Life
11.3 yr
Yield
1.73% + 30/swaps
Speed
0% CPY
Coupon
1.89%
Call Protection
137mo Yield Maintenance
Tier
2
GEO
OH
DSCR
--
LTV
78.9%
OCC
97%
Factor
.9983

Agency CMO – 3 Year

Cost
$104-01
$5mm Freddie Mac "Busted PAC" 2.50%, FHR 4926 BL, 10/49 stated final
Average Life
3.4 yr
Yield
1.21%
Speed
412 PSA
Spread
+70/I curve
Collateral
New Fannie 30yr 3.50%
Coupon
2.50%
Band
Busted PAC
Avg Life w/ rates +300
8.3 yr
Factor
.5946

Agency CMO – 5 Year

Cost
$106-08
$6.6mm+ Fannie Mae "AD Busted PAC" 3.00%, #FNR 20-11 JW, 3/50 stated final
Average Life
4.6 yr
Yield
1.55%
Speed
656 PSA
Spread
+80/I curve
Collateral
New FNMA 30yr Jumbo 3.00%
Coupon
3.00%
Band
AD Busted PAC
Avg Life w/ rates +300
19.7 yr
Interest Only until
5/24
Factor
1.0000

Agency CMO – Long End

Cost
$97-14
$4.7mm Freddie Mac "AD PAC" 2.00%, #FHR 5055 PL, 12/50 stated final
Average Life
18.3 yr
Yield
2.17%
Speed
270 PSA
Spread
+40/I curve
Collateral
New 30yr Jumbo 2.00%
Coupon
2.00%
Band
115-271 PAC
Avg Life w/ rates +300
18.8 yr
Interest Only until
5/36
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.