9117 Anacapa Bay Pinckney, Michigan 48169

810-231-5050

We Live Here, We Work Here, We Play Here

9117 Anacapa Bay Pinckney, Michigan 48169

810-231-5050

We Live Here, We Work Here, We Play Here

Located at the gateway to the Pinckney & Brighton Rec Area

Up To Date Real Estate News

23 Jul 2019 3:17 pm

Posted To: MND NewsWire

Existing home sales are persistent in their inability to maintain a steady course from month to month. Despite low interest rates and hopes for a strong spring market, those sales were down 1.7 percent in June. Sales the prior month had posted a 2.5 percent increase, breaking out of a two-month slump. The National Association of Realtors® (NAR) said sales of previously owned single-family homes, townhomes, condominiums and cooperative apartments were at a seasonally adjusted annual rate of 5.27 million during the month compared to 5.34 million in May. This is also fewer sales than the 5.39 million posted in June 2018, a loss of 2.2 percent. Sales in May did fall within the range of estimates from analysts polled by Econoday of 5.15 to 5.45 million but failed to meet the consensus forecast...(read more)

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23 Jul 2019 2:01 pm

Posted To: MND NewsWire

The Federal Housing Finance Agency's (FHFA's) House Price Index (HPI) fell in line with most other indices in May, showing a slowdown in housing price appreciation. The agency said home prices gained 0.1 percent compared to April and was 5.0 percent higher than in May 2018. While the FHFA numbers have been trending lower they have not done so in a consistent manner and its annual figure remains significantly higher than the appreciation shown by other major data providers which have drifted down into the mid-3 percent range. Both of the May figures are reversals of April's gains of 0.4 percent for the month and 5.2 percent on an annual basis. For the nine census divisions, seasonally adjusted monthly house price changes from April 2019 to May 2019 ranged from a 1.0 percent loss in the East...(read more)

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23 Jul 2019 1:37 pm

Posted To: MND NewsWire

The bubble in the mortgage prepayment rate burst in June. Black Knight, in its "first look" at the month's loan performance statistics, said the single month mortality rate (SMM), the pace at which mortgages are paid down or off, declined for the first time in five months . The rate is usually an indication of refinance activity, although home sales also play a major role, and it dropped 7.5 percent compared to the previous month despite continuing low interest rates. The prepayment rate had surged 24 percent in May to the highest level since late 2016 and more than doubled over the February-May period. Even with the downturn last month the rate remains 20 percent higher than in June 2018 at 1.14 percent. Black Knight says that the national delinquency rate has set multiple consecutive record...(read more)

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23 Jul 2019 12:57 pm

Posted To: Pipeline Press

During my travels someone recently told me that the “x” at the end of Cajun names was attributable to illiterate Cajuns “making their mark.” But instead it seems that two hundred years ago Judge Paul Briant took responsibility for the 1820 U.S. census in Louisiana and is most responsible for the standard “eaux.” Louisiana has 90 million tons of sediment passing through in the Mississippi River every year, most of which, due to man’s intervention, passes through into the Gulf . There’s a saying, “Buy land – they’re not making any more of it.” It is one thing for the Federal Government to publicize its housing policy goals, it’s another for state and local zoning action to incorporate them. Earlier this month, the Seattle...(read more)

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23 Jul 2019 12:56 pm

Posted To: MBS Commentary

In the day just passed, bonds made modest gains at the open only to give most of them up by the close. Activity was concentrated at the specific opening and closing bells for the CME (where bond options still trade in "the pit" and where many of the most active bond traders execute electronic trades at a desk). This is a common occurrence when volume and liquidity are in short supply. Yesterday was the lowest volume session in months. In the day ahead, bonds will see if they can do any better in terms of mustering up volume and participation. The presence of economic data (existing home sales) and the week's first Treasury auction may help to create some signs of life at 10am and 1pm respectively. So far, we're seeing yields in an even narrower range--a phenomenon that began...(read more)

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23 Jul 2019 12:16 pm

Posted To: MND NewsWire

Given its press coverage, one would conclude that financial technology (fintech) has all but taken over residential real estate and its financing. However, a new report from Jung Choi, Karan Kaul, and Laurie Goodman of the Urban Institute (UI) states that the online share of all home sales (to owner-occupants, investors, fix-and-flippers, and others) is less than 15 percent. Compare this to other online shares; book sales, 55 percent; music, 80 percent; electronics, 35 percent. The authors point out that buying a home is complex and time-consuming, heavily regulated at all government levels, involves multiple stakeholders, and is highly consequential to households' financial well-being. Despite these barriers, technology has made inroads, helping consumers build credit and save for a down payment...(read more)

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22 Jul 2019 7:30 pm

Posted To: Mortgage Rate Watch

Mortgage rates were lower again today. The improvement was fairly decent given the amount of movement seen in the bond market. The reason for that has to do with the phenomenon we discussed on Friday whereby mortgage lenders are generally a bit cautious when it comes to adjusting rate sheets to keep pace with bond market movement. With that in mind, bonds had improved during the day on Friday, but most lenders didn't adjust rates in the afternoon. Simply put, we are seeing Friday afternoon's bond market improvement today. There are only a few significant scheduled events with the potential to cause volatility for rates this week and they won't hit until the end of the week. Even then, it will be next week's Fed announcement (where they're widely expected to cut rates) that stands the biggest...(read more)

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22 Jul 2019 12:54 pm

Posted To: Pipeline Press

There are more stars in the universe than words ever uttered by all the humans who ever lived. (That’s a good line for tonight’s Happy Hour.) Money, on the other hand, is finite, and catching everyone’s attention this morning is a) Zillow telling us that 37% of U.S. homes are free and clear of a mortgage, and b) the Equifax settlement for $700 million in its 2017 data breach settlement from a consumer class action suit on behalf of 145 million people . The deal includes $77.5 million in attorney fees, per one story , and $300 million for credit monitoring – about $2 per head. I don’t know how this helps me, as my guess is that someone in a foreign land now has all of my “private” information. Can’t we take the billions that will be spent on space...(read more)

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22 Jul 2019 12:54 pm

Posted To: MBS Commentary

In the week just passed, bonds set to the task of confirming a ceiling in yields that had been forming at the end of the previous week. The friendly support put an end to the selling pressure that had been intact since the strong jobs report at the beginning of the month. European bond market strength and US stock market weakness were both generally supportive. But there wasn't quite enough momentum in the other direction to identify a new, positive trend. Bonds generally drifted sideways near the week's best levels on Thursday and Friday. In the week ahead, we'll have a moderate dose of data and events to digest in what otherwise will be a placeholder ahead of next week's Fed rate cut. Technically, next Wednesday should be referred to as a meeting or an announcement, but the...(read more)

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20 Jul 2019 12:31 am

Posted To: MBS Commentary

If yesterday was marked by rather aggressive comments by Fed's Williams (aggressive enough to convince a few market participants that the Fed might cut by 50bps at the end of the month), today was marked by the retraction of those comments. Well, at the very least, that was the only relevant development of the day, and it happened in two phases. The first phase was a simple interview that unwound less than half of yesterday's gains. That actually happened late last night and was well priced-in by the time markets opened. The 2nd phase happened in the middle of the trading day when the WSJ released an article saying the Fed was likely to only be cutting by 25bps at the end of the month. That was good or another 25% unwinding of yesterday's gains, but the weaker momentum fizzled quickly...(read more)

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20 Jul 2019 12:04 am

Posted To: Mortgage Rate Watch

Mortgage rates Moved just slightly lower today, despite some push back from underlying bond markets. Typically, weakness in the bond market (like the kind we saw today) corresponds to rising rates--even if only a modest amount. The compensating factor today was the timing of yesterday's bond market gains. Simply put, there is a bit of lag between bond market movement and mortgage lenders' ability or willingness to pass those gain along in terms of improved rates. Additionally, in this more volatile environment with rates already very close to super long-term lows, lenders are generally hesitant match the bond market's movement step for step. All of the above left lenders with some insulation against today's bond market weakness. Had it been any bigger, we probably would be talking about slightly...(read more)

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19 Jul 2019 4:12 pm

Posted To: MND NewsWire

The so-called GSE Patch for the Consumer Financial Protection Bureau's (CFPB) 2013 Ability-to-Repay (ATR) and Qualified Mortgage (QM) rule (Rule) is scheduled to expire in January 2021 (earlier if the government sponsored enterprises (GSEs) are released from conservatorship.) The Patch created a temporary category under the ATR and QM rule under which loans eligible for purchase or guarantee by the GSEs can qualify as QM loans. The ATR and QM rules require lenders to make a reasonable, good-faith determination of a consumer's ability to repay a mortgage loan based on verified borrower financial information. These include consumer protection features generally associated with responsible mortgage lending practices. In most cases, meeting QM requirements provides lenders with a safe harbor from...(read more)

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19 Jul 2019 1:25 pm

Posted To: MBS Commentary

In the day just passed, bonds did an admirable job shaking off the ill effects of a significantly stronger Philadelphia Fed Manufacturing Business Outlook Survey (aka "Philly Fed"). This report is a solid and fairly consistent market mover. It beat its forecast by the largest amount since 2009. Those facts alone are pretty scary for bonds, but there were nuances that helped mitigate the damage (we discussed them in detail yesterday in the Huddle and the Recap ). Chief among these was a speech by San Fran Fed Pres. Williams which markets took as a potential indication of a 50bp rate cut in July. He's since given an interview saying that wasn't his intention. In the day ahead, nothing really matters because yesterday--and indeed the past several months in general--have shown...(read more)

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19 Jul 2019 1:20 pm

Posted To: Pipeline Press

Some people pray for ice cream, and their prayers will be answered as this Sunday is National Ice Cream Day. An MLO prayer? “Dear Lord, just give me one more refi boom. I promise to save my money this time.” At the lender level there is plenty of maneuvering going on. Lenders are busy re-hiring ops staff laid off in the past, setting up contract underwriting with private mortgage insurance companies to handle the overflow, or interviewing competitor’s ops staff. Some are hiring with the caveat of not hiring anyone requiring desk space in the office. Vets know that full pipelines in July don’t necessarily mean full pipelines in October. Lender Products and Services Have you converted your leases to the new accounting standard? The requirement kicks in effective January...(read more)

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18 Jul 2019 10:13 pm

Posted To: MBS Commentary

It was a tale of two market movers today as afternoon Fed comments completely reversed an earlier reaction to super strong economic data. The Philly Fed survey blew expectations out of the water and handily crushed last month's numbers across the board. Given that the market holds this report in higher-than-average regard, it was no surprise to see bonds losing ground right after it came out. But bonds didn't lose as much ground as it seemed like they should, based on the size of the beat. Part of the reason is that in the context of 2 months worth of Philly Fed data, this month's report looks a lot like the last massive beat in March. Both followed exceptionally weak readings in the previous month (Feb and June respectively). I'm not sure why economists didn't update their...(read more)

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18 Jul 2019 9:37 pm

Posted To: Mortgage Rate Watch

Economic data and mortgage rate movement go hand in hand. A stronger economy puts upward pressure on rates. A contracting economy helps rates move lower. While this is far from the only source of inspiration, it's indirectly linked to other major sources of inspiration (like Fed policy). Paradoxically, rates managed to move a bit lower today despite an exceptionally strong economic report. What's up with that? The Philadelphia Federal Reserve district publishes a highly regarded report on the manufacturing outlook each month (dubbed simply "The Philly Fed Survey"). It crushed expectations today. True to expectations, the bond market (which underlies mortgage rate momentum most directly) weakened at first, thus suggesting higher rates. But bonds quickly found their footing. This likely had to...(read more)

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18 Jul 2019 12:48 pm

Posted To: MBS Commentary

In the day just passed, bonds enjoyed one of their best rally days in recent weeks as the stock market endured its 2nd weakest day since May. Stocks weren't the exclusive motivation, but there's no way to pin down cause and effect without descending into conjecture. Leading suspects include a technical bounce at 2.15% (i.e. traders sold as much as they were willing to sell after the strong jobs number 2 weeks ago), a global supply chain warning from the IMF, and a now-tabled impeachment vote in the House yesterday evening. If we had to pick 2 , however, they'd be the stock sell-off and the technical bounce in bonds. In the day ahead, we'll consider a technical bounce on the other side of this week's range. Rather than make it down to the 2.02% or 1.975% levels that were...(read more)

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18 Jul 2019 12:46 pm

Posted To: Pipeline Press

There’s a lot going on out there! Rocket Mortgage is creating new technology that will allow the State Farm agents to offer a Rocket Mortgage loan as a licensed loan originator. Some accounting staff believe their prayers have been answered regarding CECL. The Financial Accounting Standards Board voted Wednesday to propose to delay some of its major accounting standards (including credit losses, leases, hedging and long-duration insurance contracts) for private companies, nonprofits, and small reporting companies. And in the courts, a ruling dealt a blow to efforts by HUD to restrict nonprofit housing funds from operating on a national scale. Chenoa is especially interested in Judge David Neffer (U.S. District Court, Utah) granting an injunction from the bench further delaying implementation...(read more)

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18 Jul 2019 12:37 pm

Posted To: MND NewsWire

Closing rates for mortgage loans were at the highest level in June since Ellie Mae began collecting the data in 2011. The company, in its June Origination Insight Report , said 76.8 percent of all loans closed , up from a rate of 75.6 percent the previous month. Closing rates on purchase loans hit 78.8 percent while the rate for refinances was 73.4 percent. Ellie Mae basis closing rates on applications submitted 90 days earlier, in this case in March. The rate for 30-year mortgages originated during June dropped to 4.40 percent from 4.52 percent in May, the sixth consecutive month that rates declined. The 30-year note rate for FHA loans decreased to 4.49 percent from 4.63 percent and the 30-year Conventional rate and VA rate each fell 11 basis points to 4.41 percent and 4.20 percent respectively...(read more)

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18 Jul 2019 12:24 pm

Posted To: MND NewsWire

There was a huge decline in foreign investment in U.S. real estate during the 12 months ending with the first quarter of 2019. The National Association of Realtors® (NAR) said the reduction was evident in both the purchases of resident (i.e. recent immigrants) and non-resident foreign buyers and explained the drop as the result of slowing global economics and low U.S. housing inventories. NAR's annual Profile of International Transactions in U.S. Residential Real Estate shows that international buyers bought $77.9 billion worth of U.S. existing homes between April 1, 2018 and March 31, 2019. This is a 36 percent decrease from the 2018 report's survey's $121 billion in spending. Non-resident foreign buyers accounted for $33.2 billion of U.S. existing-home sales, a 37 percent decline from...(read more)

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17 Jul 2019 9:27 pm

Posted To: Mortgage Rate Watch

Mortgage rates improved today, depending on the lender and the time of day! Underlying bond markets were only modestly stronger in the morning. As such, the average lender only offered modest improvements over yesterday's rates at first. But as the day progressed, market volatility favored bonds. Once bonds improved enough, many lenders ended up offering positive reprices. Even then, most lenders don't tend to drop rates enough to fully reflect friendly market movements such as today's. That means tomorrow's rates could be even better if the underlying bond market can merely manage to hold steady by tomorrow morning. Today's Most Prevalent Rates 30YR FIXED - 3.875% FHA/VA - 3.625% 15 YEAR FIXED - 3.5-3.625% 5 YEAR ARMS - 3.375-3.75% depending on the lender Ongoing Lock/Float Considerations...(read more)

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17 Jul 2019 9:26 pm

Posted To: MBS Commentary

What began as a rather unassuming summertime Wednesday quickly turned in to one of the biggest rally days in weeks for bonds. 10yr yields moved more than 6bps lower to end the day well under the important 2.06% technical level and Fannie 3.0 MBS gained a quarter of a point. Although there was economic data in play this morning (slightly weaker construction numbers), it certainly wasn't the driver of the move. In fact, looking beyond the headline actually showed improvements in single-family construction numbers. More importantly, bonds really didn't do much until after 10am. The same time frame corresponds to fairly brisk losses in the stock market. Bonds and stocks don't always follow each other. Many times, they move in opposite directions--especially when they're trading...(read more)

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17 Jul 2019 3:25 pm

Posted To: MND NewsWire

The residential construction numbers in June were expected to come in largely in the same neighborhood as in May. Analysts however got it only half right. While starts fell fractionally, permits took a dive, falling by 6.1 percent compared to the previous month. The U.S. Census Bureau and Department of Housing and Urban Development said permits for residential construction were at a seasonally adjusted annual rate of 1,220,000 compared to a revised 1,299,000 in May. May permits were originally reported at an annual rate of 1,295,000. The June number put the year-over-year results down by 6.6 percent. Analysts polled by Econoday had expected an annual pace of 1,300,000 for permits. Their forecasts ranged from 1,252,000 to 1,300,000, missing the actual results completely. Permits for single-family...(read more)

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17 Jul 2019 2:04 pm

Posted To: Pipeline Press

I encounter plenty of people in the mortgage biz, from part-time receptionists to owners, who are focused on helping consumers. It’s a good thing! And they ask me about consumer education. (“Have you ever heard of a class for anyone on home buying or the home loan process?”) One solution, and this is not a paid ad, is to invite them to set up a personalized (branded in your name, look/feel) financial locker through FinLocker , which currently houses over 140 consumer-facing videos and includes goal setting, budget planning and more. Shoot President Brian Vieaux an email to learn more. If it helps just one potential borrower or kid in school, or saves you from creating 140 videos, why not? Lender Products and Services “The Customer Experience is critical. Today, everyone...(read more)

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17 Jul 2019 1:23 pm

Posted To: MBS Commentary

In the day just passed, a strong Retail Sales report kept the pressure on bond markets to remain in the negative trend that prevailed last week. Yields have been moving progressively higher since the June 5th jobs report catalyzed a confirmed break of a narrow, consolidation pattern at multi-year yield lows. Ultimately, however, 2.15% remained intact as a firm ceiling for the 4th straight day and bonds were able to recover a majority of the morning's losses. In the day ahead, we'll see if traders have any inclination to build on that resilience. As seen in today's chart, modest strength early in the session brings yields right in line with the lower boundary of the current negative trend (the "bad vibes" mentioned in the title). They'd need to break below 2.065 --convincingly...(read more)

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