Good morning. Today we got Mortgage Applications at -14.2% This is the biggest down number on this indicator since 3/27/20 when we saw -27.4% and 4/3/20 at -17.9%, at the outset of COVID. This is also now down 11 of the past 14 weeks. This is our only number today.

Bonds are selling off currently. 10yr T-Notes are -1-03 to yield a 3.77%. MBS are getting slammed too. FNMA 30yr 5.00% are -22/32 to $97-25, which is a 5.39% yield and +153 basis points to the 7.6yr treasury curve. That’s it from us.  Have a great day and call or email with your MBS and whole loan inquiries.

Cherry Picks

ARMS / FLOATERS

Cost
$103-16
$32mm+ Fannie Mae 7/1 ARM 3.783%, #BM7014, 5/47 stated final
Average Life
2.7 yr
Yield
3.89%
Speed
30% CPR
Spread
+15/I curve
Coupon
3.783%
MTR
8
Loans
1,329
Caps
Periodic 5/2/5, Lifetime 7.725%
Floor
1.714%
1 Yr. Libor
+1.714%
WAM
274
Factor
.8966

10 Year Fixed

Cost
$95-16
$2.6mm+ Fannie Mae 10yr am 2.50%, #MA4636, 6/32 stated final
Average Life
3.7 yr
Yield
3.81%
Speed
225 PSA
Spread
+13/I curve
Coupon
2.50%
# Loans
742
Origination
2022
Type
Fannie Major
WAM
114
Factor
.9569

15 Year Fixed

Cost
$91-20
$50mm Fannie Mae Dwarf 2.00%, #MA4582, 4/37 stated final
Average Life
5.9 yr
Yield
3.65%
Speed
128 PSA
Spread
+13/I curve
Coupon
2.00%
# Loans
9,442
Origination
2021/2022
Type
Fannie Major
WAM
173
Factor
.9579

20 Year Fixed

Cost
$92-24
$18mm+ Fannie Mae 20yr am 3.00%, #MA4643, 5/42 stated final
Average Life
7.5 yr
Yield
4.20%
Speed
111 PSA
Spread
+69/I curve
Coupon
3.00%
# Loans
3,198
Origination
2021/2022
Type
Fannie Major
WAM
234
Factor
.9767

30 Year Fixed

Cost
$88-00
$10mm Fannie Mae 30 yr am 2.50%, #MA4438, 10/51 stated final
Average Life
9.8 yr
Yield
4.14%
Speed
101 PSA
Spread
+70/I curve
Coupon
2.50%
# Loans
32,536
Origination
2021
Type
Fannie Major
WAM
345
Factor
.9123

Agency CMBS

Cost
$93-18
$60mm+ FNMA 10/9.5 DUS #BS5564, 3.14% coupon, 6/2032 stated final
Average Life
9.8yr
Yield
3.99% + 48/swaps
Speed
0% CPY
Coupon
3.14%
Call Protection
111mo Yield Maintenance
Tier
2
GEO
VA
DSCR
--
LTV
58.4%
OCC
85.7%
Interest Only Until
81 Months
Factor
1.0000

Agency CMO – 3 Year

Cost
$94-04
$3.8mm Freddie Mac "Pass-Thru" 2.50%, FHR 22-15 AB, 11/39 stated final
Average Life
4.7 yr
Yield
3.94%
Speed
193 PSA
Spread
+33/I curve
Collateral
Seas Fannie 30yr 6.00% reperformers
Coupon
2.50%
Band
Pass Thru
Avg Life w/ rates +300
5.0 yr
Factor
.8496

Agency CMO – 5 Year

Cost
$95-09
$21mm+ Fannie Mae "Pass-Thru" 3.00%, #FNR 17-24 E, 4/47 stated final
Average Life
5.7 yr
Yield
3.97%
Speed
145 PSA
Spread
+40/I curve
Collateral
FNMA 30yr Seasoned 4.50%
Coupon
3.00%
Band
Pass-Thru
Avg Life w/ rates +300
6.4 yr
Factor
.2859

Agency CMO – Long End

Cost
$85-12
$10mm Freddie Mac "Pass-Thru" 2.00%, #FHR 5189 A, 1/52 stated final
Average Life
9.5 yr
Yield
4.05%
Speed
118 PSA
Spread
+60/I curve
Collateral
New FNMA 30yr 3.50%
Coupon
2.00%
Band
Pass Thru
Avg Life w/ rates +300
10.8 yr
Factor
.9724

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.