Good morning and happy Monday! Scheduled news comes in tomorrow, but today we have some interesting changes in the housing market.
Mortgage fraud is on the rise in 2021, particularly in purchase applications. We’re seeing some type of fraudulent activity in 1 of every 90 applications, which is a 40% increase over 2020. The highest incidence was found in investment properties, where 1 in 23 applications was tainted. Several stories are circulating about the recent jump higher in mortgage rates. We’re now at 3.14%, the highest rate we’ve seen in 8-months. The biggest point they’re making, however, is that rates are still low by historic standards. 30yr conforming rates got to the 4.80% range during the last rate cycle.
Re-enforcing this feeling is news that one of the men most well-known for predicting the 2007 housing crash, Barry Habib, is now on record calling for home prices to continue rising. He’s considered one of the best housing market timers, winning Zillow’s “Crystal Ball Award” multiple times! He says the big difference now compared to then is current lack of supply.
Bonds today are down, with 10yr T-Notes -9/32 to yield 1.58%. In MBS 30yr FNMA 2.50% are +3/32 to $102-22, which yields 1.88% and is +81 to the 5.1yr treasury curve. Have a great day!
Cherry Picks
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Agency CMBS
Agency CMO – 3 Year
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Agency CMO – Long End
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