Good morning and happy hump day! Today is a target-rich environment for scheduled news of all persuasions and will do it for the week. In mortgage land we had Mortgage Applications for the week ending Nov. 19 and New Home Sales for Oct. Mortgage Applications is coming off a -2.8% last week and came in today at +1.8%. New Home Sales printed +14.0% in Sept. and the street was looking for unchanged today. That actually improved to +0.4%. In other news today, Redfin is calling for home price growth to slow to the 3% range in 2022.

Bonds today are down slightly in price, with 10yr T-Notes -3/32 to yield 1.67%. In MBS, Fannie 30yr 2.50% are -12/32 to $101-22, which is a 2.12% yield and +72 to the 5.3yr treasury curve. That’s all from us today. Have a great day and call or email with your bond or loan inquiries.

Cherry Picks

ARMS / FLOATERS

Cost
$103-18+
$1.98mm+ Fannie Mae 7/1 ARM 2.686%, #841231, 4/50 stated final
Average Life
3.4 yr
Yield
1.51%
Speed
15% CPB
Spread
+45/z curve
Coupon
2.686%
MTR
64
Loans
43
Caps
Periodic 5/2/5, Lifetime 7.687%
Floor
1.619%
1 Yr. Libor
+1.619%
WAM
340
Factor
.5349

10 Year Fixed

Cost
$103-14
$3mm+ Fannie Mae 10yr am 2.00%, #MA4425, 9/31 stated final
Average Life
3.2 yr
Yield
.87%
Speed
346 PSA
Spread
+15/I curve
Coupon
2.00%
# Loans
1,304
Origination
2020
Type
Fannie Major
WAM
1133
Factor
.9665

15 Year Fixed

Cost
$103-06
$8mm Fannie Mae Dwarf 2.00%, #MA4497, 11/36 stated final
Average Life
4.9 yr
Yield
1.29%
Speed
234 PSA
Spread
+24/I curve
Coupon
2.00%
# Loans
1,179
Origination
2021
Type
Fannie Major
WAM
177
Factor
1.0000

20 Year Fixed

Cost
$102-20
$7mm+ Fannie Mae 20yr am 2.00%, #MA4474, 11/41 stated final
Average Life
5.5 yr
Yield
1.47%
Speed
241 PSA
Spread
+34/I curve
Coupon
2.00%
# Loans
9,078
Origination
2021
Type
Fannie Major
WAM
238
Factor
.9972

30 Year Fixed

Cost
$103-18
$10mm Fannie Mae 30 yr am 2.50%, #MA4438, 10/51 stated final
Average Life
5.7 yr
Yield
1.80%
Speed
277 PSA
Spread
+64/I curve
Coupon
2.50%
# Loans
34,524
Origination
2021
Type
Fannie Major
WAM
356
Factor
.9888

Agency CMBS

Cost
$101-12
$11.0mm+ FNMA 12/11.5 DUS #BS3024, 1.91% coupon, 9/2033 stated final
Average Life
11.5 yr
Yield
1.80% + 25/swaps
Speed
0% CPY
Coupon
1.91%
Call Protection
136mo Yield Maintenance
Tier
2
GEO
NH
DSCR
--
LTV
79.4%
OCC
95%
Interest Only Until
70 Months
Factor
1.0000

Agency CMO – 3 Year

Cost
$103-14
$5mm Freddie Mac "Busted PAC" 2.50%, FHR 4926 BL, 10/49 stated final
Average Life
3.5 yr
Yield
1.43%
Speed
387 PSA
Spread
+65/I curve
Collateral
New Fannie 30yr 3.50%
Coupon
2.50%
Band
Busted PAC
Avg Life w/ rates +300
8.4 yr
Factor
.5156

Agency CMO – 5 Year

Cost
$10612
$6.6mm+ Fannie Mae "AD Busted PAC" 3.00%, #FNR 20-11 JW, 3/50 stated final
Average Life
6.1 yr
Yield
1.85%
Speed
483 PSA
Spread
+65/I curve
Collateral
New FNMA 30yr Jumbo 3.00%
Coupon
3.00%
Band
No Band
Avg Life w/ rates +300
18.4 yr
Interest Only until
4/25
Factor
1.0000

Agency CMO – Long End

Cost
$96-03
$4.7mm Freddie Mac "AD PAC" 2.00%, #FHR 5055 PL, 12/50 stated final
Average Life
18.1 yr
Yield
2.27%
Speed
179 PSA
Spread
+45/I curve
Collateral
New 30yr Jumbo 2.00%
Coupon
2.00%
Band
131-266 PAC
Avg Life w/ rates +300
19.3 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.