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

27 Jul 2017 9:39 am

Posted To: MND NewsWire

Freddie Mae is projecting that 2017 will be another good year for multi-family housing. The company, a major presence in financing multifamily housing, released its Multifamily Mid-Year Outlook on Wednesday. The Outlook, authored by Steve Guggenmos, Freddie Mac Multifamily vice president of research and Modeling, and Sara Hoffmann, predicts that the market will continue to grow for the remainder of this year and into the next. "Although the market will continue to moderate from cyclical highs," they say, "demand for rental housing units will remain steady. As a result, Freddie Mac is predicting that origination volume is likely to hit another record in 2017, reaching between $270 and $280 billion." That number, while a new high, is lower than the original forecast. Higher interest rates and...(read more)

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27 Jul 2017 9:10 am

Posted To: Pipeline Press

Have you been chipped yet? A Wisconsin company is holding a “chip party” to implant chips into its employees so they can buy snacks with a wave of the hand. Is having your complete credit information on it far behind? In technology more specific to mortgages, AFR Wholesale announced a partnership with Amazon to integrate its lending origination portal, AFR Loan Center ®, with Amazon's intelligent personal digital assistant, Alexa: AskAFR through Alexa. It "provides AFR brokers technology to improve customer service by offering instant and continual access to information about their current account pipeline." State news Federal regulations that impact residential lending everywhere are one thing, but when each state is making changes it makes it tough, and expensive , to be a...(read more)

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27 Jul 2017 8:40 am

Posted To: MBS Commentary

What is a tradeflow? We have a primer that attempts to answer that question on MBS Live ( this one ), but even after reading that multiple times, you wouldn't be alone in continuing to view the topic as esoteric, confusing, and perhaps a bit frustrating. One problem is that "tradeflow" isn't the perfect word to define what we're attempting to define in the primer. There really is no single word for it. In general, for our purposes, it's a catch-all term that broadly refers to all the trading that's taking place for reasons independent of motivation from conventional cause and effect (e.g. economic data and news headlines). Here's an excerpt from the primer: [Tradeflows] aren't only important for the traders who are actually opening and closing their own...(read more)

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26 Jul 2017 5:44 pm

Posted To: MBS Commentary

Today's focus was understandably on the Fed Announcement, and indeed, most of the movement followed it. But interestingly enough, the biggest volume spikes occurred at other times, and that helps explain the day's paradoxical movement. So what's the paradox? Quite simply, it made very little sense to see as much of a rally as we saw based on the content of the Fed Announcement. Why? Because the announcement was utterly inoffensive. If you'd commissioned a thousand market participants and Fed followers to draft a consensus estimate for the Fed, it would have looked exactly like today's actual announcement. In short, there was nothing even remotely resembling a surprise. Where'd the rally come from then? Bear with me here. The rally came from yesterday's sell-off....(read more)

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26 Jul 2017 4:06 pm

Posted To: Mortgage Rate Watch

Mortgage rates were steady to slightly lower today, despite fairly substantial movement in underlying bond markets. Bond prices ultimately do more to inform mortgage rates than anything else. Prices moved higher today by an amount that would typically result in effective rates falling 0.03-0.05% depending on the lender. But as it stands, the average lender is only 0.01% lower than yesterday's latest offerings. Given recent volatility, it's not outside the realm of possibility that lenders are simply waiting to make sure the gains are still around tomorrow before they adjust rate sheets more aggressively. This would fit with recent patterns of lender rate sheet movement lagging bond market movement. As for today's market motivation, the lion's share of the movement happened after the Fed Announcement...(read more)

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26 Jul 2017 1:02 pm

Posted To: MBS Commentary

(Additions underlined, deletions struck through) Information received since the Federal Open Market Committee met in May June indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year. Job gains have moderated but have been solid, on average, since the beginning of the year, and the unemployment rate has declined. Household spending has picked up in recent months, and business fixed investment has have continued to expand. On a 12-month basis, overall inflation has declined recently and, like and the measure excluding food and energy prices, is prices have declined and are running somewhat below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations...(read more)

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26 Jul 2017 9:09 am

Posted To: MND NewsWire

New home sales pulled out a slight month-over-month gain in June only because estimates of sales in May were revised down. The U.S. Census Bureau and the Department of Housing and Urban Development said today that sales of newly constructed homes were at a seasonally adjusted annual rate of 610,000 units. This was an increase of 0.8 percent from the revised rate of 605,000 units in May, sales that were originally estimated at 610,000. The June rate is 9.1 percent ahead of the 559,000-unit pace in June 2016. Analysts had projected the June sales number over a wide range, from 590,000 to 630,000 units. The consensus of those polled by Econoday was 611,000. On a non-seasonally adjusted basis there were 55,000 homes sold during the month, compared to 57,000 in May and 50,000 a year earlier. The...(read more)

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26 Jul 2017 8:43 am

Posted To: MBS Commentary

Remember 2015? The Fed spent the whole year talking about hiking rates for the first after spending years at 0% and ultimately didn't get around to it until December. But perhaps the most interesting phrase in any of the year's Fed announcements was seen in the October Announcement. It was as follows: "In determining whether it will be appropriate to raise the target range at its next meeting," This was the first time the Fed had "called its shot" since 1999, and it threw bond markets for a loop. Granted, things are a bit different this time around. Recent Fed speeches have done more to hearken the balance sheet reduction plan as opposed to rate hikes. In fact, they've all but guaranteed that we'll only see 1 more hike in 2017, at the most (but reserve the...(read more)

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26 Jul 2017 8:17 am

Posted To: Pipeline Press

We’re in the midst of state fair season, and with it all the wonderful organic health food. Have you tried deep fried butter? Have a hankering for fried beer? Always wanted to try Wisconsin’s “Fat Elvis on a Stick” or the king of fish: walleye? Here's a list of amusing state fair offerings. Bank News and M&A The new Comptroller of the Currency said the OCC has the authority to grant national bank charters for non-deposit taking fintech companies for special purpose charters . He said the OCC has not yet received any fintech applications, but would do so if such companies were interested in the charter. Varo Money will become the second fintech (after SoFi) to try and become a bank, as it seeks a charter from the OCC. JPMorgan has partnered with PayPal to allow Chase...(read more)

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26 Jul 2017 7:31 am

Posted To: MND NewsWire

A decline in purchase mortgage applications cancelled out most of a moderate increase in refinancing during the week ended July 21. Nonetheless, the Mortgage Bankers Association said its Market Composite Index eked out a slight gain. The Index was up 0.4 percent on a seasonally adjusted basis and 1.0 percent unadjusted. The Refinance Index rose for the second straight week, increasing by 3.0 percent compared to the week ended July 14. The refinance share of the business was 46.0, up from 44.7 percent the prior week. The Purchase Index declined by 2.0 percent on both a seasonally adjusted and an unadjusted basis. The unadjusted Purchase Index was 8.0 percent higher than the same week in 2016. Refi Index vs 30yr Fixed Purchase Index vs 30yr Fixed Both the FHA and the VA share of applications...(read more)

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25 Jul 2017 3:24 pm

Posted To: MBS Commentary

Bonds sold off aggressively today, for a combination of reasons that are tremendously unsatisfying in a traditional market-watching sense. For example, it would be nice if we could point to something tidy and logical like all-time high stock prices, or the stronger Consumer Confidence data, but at the very best, these were merely supporting actors in a subtler, more complex drama. Actually, it's only complex inasmuch as it's not the first thing most market-watchers think of when they see moves this big. It's actually fairly simple as long as you can accept that something so simple could actually cause so much movement. Long story short: a small imbalance of positivity had built up over the past 2 weeks. It wasn't too troubling in and of itself, and it could have turned into...(read more)

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25 Jul 2017 2:18 pm

Posted To: Mortgage Rate Watch

Mortgage rates moved abruptly higher today, erasing the improvement seen last week. An entire week's worth of movement may or may not be worth stressing out about depending on your perspective. On one hand, we're only talking about a change of roughly 0.06% in terms of the "effective rate" on the average 30yr fixed loan. That'll cost you about $7/month on a $200k loan. On the other hand, last week was the best in more than 2 months. While erasing those gains might not be dramatic in terms of outright financial impact, it could signal a shift in the overall trend. There are 2 trends to consider at the moment. The first only stretches back to early July, and that's the one that's clearly under attack. The other trend is one of general improvement since March 2017, and we'd need to see several...(read more)

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25 Jul 2017 1:08 pm

Posted To: MND NewsWire

Unless one follows the Fannie Mae/Freddie Mac conservatorship drama on a regular basis, it is easy to get lost in the legal weeds. MND has dipped in and out periodically, and it is time for another update. To briefly reprise. When the two government sponsored enterprises (GSEs) were placed in government conservatorship in 2008 each were given access to multi-billion-dollar lines of credit from the U.S. Treasury. Under the terms of their Senior Preferred Stock Agreement (SPSA), Treasury would be given dollar-for-dollar shares of preferred stock and would receive a fixed quarterly dividend. Fast forward to 2012. During their four years in conservatorship the GSEs had drawn billions of dollars from the Treasury, (to date Fannie Mae has drawn $116.1 billion and Freddie Mac $71.3 billion) but had...(read more)

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25 Jul 2017 9:42 am

Posted To: MND NewsWire

The S&P CoreLogic Case-Shiller National Home Price Index hit another new record in May, the sixth consecutive month it did so while the Federal Housing Finance Agency reported another increase in its annual Housing Price Index (HPI) Case-Shiller's National index, which covers all nine U.S. census divisions, rose 5.6 percent on an annual basis, the same increase it posted in April. The index is now at 190.61, besting last month's record high of 180.50. On a month over month basis, the index gained 1.0 percent on a non-seasonally adjusted (NSA) basis (it rose 0.9 percent in April) and was 0.2 percent higher on an adjusted (SA) basis. The 10-City Composite Index had an annual increase of 4.9 percent compared to 5.0 percent a month earlier. On a month-over-month basis it rose 0.7 percent before...(read more)

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25 Jul 2017 8:33 am

Posted To: Pipeline Press

Lenders cutting margins in a diminishing mortgage marketplace. You bet. Does one lender want 100% market share? Perhaps. Here’s the latest example: Ally Home announced their Price Match Guarantee to give consumers peace of mind that they’re getting the best rate possible (see here for full release). "...If a consumer finds a better price at another lender, all they have to do is let their Ally Home loan advisor know..." What about the cost to produce a loan? For more information on the interaction between margins & volumes, see the "Capital markets" section below. Changes in credit underwriting and guidelines If you have bad credit, will a lender give you a home loan? Sure, someone, somewhere. What are Realtors telling their clients ? Mortgage lenders check your credit score...(read more)

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25 Jul 2017 8:21 am

Posted To: MBS Commentary

After enjoying a nice rally since July 10th, bond markets are taking the 2 days leading up to tomorrow's Fed announcement to book some profits and get back to neutral territory. Unfortunately, getting back to neutral means "selling bonds" if the prevailing trend had been positive. As discussed in this primer on MBS Live , there are long and short positions. Long positions mean "buying" in the hope that bond prices will rise and yields will fall. A short position means selling in the hope that yields will rise. Both long and short positions signify "open interest." In other words, both positions count as " bets " that are open until they're closed. If you are long Treasuries and rates are moving higher , your position is costing you more and more...(read more)

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24 Jul 2017 4:18 pm

Posted To: MBS Commentary

How's that for an exciting headline? At least it's an " extreme ," technically--just not the sort of extreme that would pique our interest (but still better than the extremes that would peak our interest rates)! Seriously though, trading volumes were easily the lowest since the December 2016 holiday season. Talk turned to political headline risk with Kushner testifying in a closed Senate session today and Manafort/Trump Jr. set for more closed-door questioning in the coming days. The fading of the last-2016 "Trump trade" has been one of the supportive themes helping bond markets push back toward lower rates. To whatever extent this week's political headlines cast more doubt on the administration's efficacy (or conversely, if they put those fears to rest)...(read more)

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24 Jul 2017 3:23 pm

Posted To: Mortgage Rate Watch

Mortgage rates held steady today, which leaves them in line with the lowest levels in July. In underlying bond markets (bond movement directly impacts lenders' rate offerings), it was an exceptionally quiet day--especially for mortgage-related bonds. Activity should increase somewhat as the week progresses. That's a typical pattern for most weeks--all other things being equal (Mondays and Fridays tend to be slower)--but we'll also get events that tend to draw out more participation among traders. The most obvious calendar item is the Fed Announcement on Wednesday. Keep in mind, there are two different varieties of Fed Announcements. Of the 8 announcements each year, 4 of them are accompanied by a press conference with the Fed Chair, as well as economic projections. Whether by design or otherwise...(read more)

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24 Jul 2017 10:35 am

Posted To: MND NewsWire

Most of the major proposals for reforming the housing finance system rely on two steps to minimize the risk that any one or two institutions, and in today's environment that would mean the GSEs Fannie Mae and Freddie Mac, can pose to the mortgage market. Current proposals require that any institution that issues mortgage-backed securities guaranteed by the government share most of the related credit risk with others in the private market, and that there be a government or government-like utility to manage the infrastructure used in issuing these securities . In a research paper written for the Urban Institute's Housing Finance Policy Center, Jim Parrott, a non-resident fellow at the Urban Institute (UI) and owner of Falling Creek Advisors, says that the GSE's and their conservator/regulator...(read more)

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24 Jul 2017 10:30 am

Posted To: MND NewsWire

Existing home sales slipped in June, with the blame again placed on low levels of inventory . The decline in sales, announced on Monday by the National Association of Realtors® (NAR), was anticipated, as pending home sales have decreased in each of the previous three months, ticking down by 0.8 percent in May. NAR said sales of existing single-family houses, townhouses, condos and cooperative apartments were down 1.8 percent in June, to a seasonally adjusted annual rate of 5.52 million units, the second slowest performance of the year. The seasonally adjusted level in May was 5.62 million units. June just managed to stay ahead of the sales pace in June 2016, bettering it by 0.7 percent. Only the Midwest saw an increase in sales compared to May. Analysts polled by Econoday had expected the...(read more)

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24 Jul 2017 9:03 am

Posted To: MBS Commentary

In March 2011, the Fed announced it would change things up with respect to its policy announcements. Although there would still be 8 of them each year, 4 of those would now include "economic projections" from FOMC members (forecasts and the infamous "dot" plot of Fed rate expectations). The content of the other 4 meetings would be the same as it ever was (same as it ever was). After letting the days go by, the Fed meetings with the projections and the press conference came to represent the "real" Fed meetings while the other 4 might as well have been water flowing underground. As early as 2012, even the talking heads picked up on this, and by 2013, the expectation for the Fed to ONLY make big moves during the "on-cycle" press conference meetings was fully...(read more)

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24 Jul 2017 8:10 am

Posted To: Pipeline Press

What should lenders and loan officers be concerned about? What’s threatening their livelihood, besides all cash buyers, venture capital firms buying houses for rentals, and Baby Boomers staying put with their 3.5% 30-year mortgages? How about www.MyMortgageAuction.com? Lenders bid on borrower's deals. Or how about ResMac's home loan automation tool Lendgenuity.com, labeled a "do it yourself" mortgage? "Eliminating the commissioned sales process and passing that savings on to the consumer, allows us to offer rates and programs well below industry averages..." Fee and Pricing Changes Pacific Union's SRP Schedules will be updated on Monday, July 24th. Effective immediately, Mortgage Works AMC will be adding an additional $100 onto the base appraisal fees for properties located in the following...(read more)

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21 Jul 2017 5:09 pm

Posted To: MBS Commentary

As expected, today could be better characterized as a highly-regulated narcotic sleep aid than an interesting trading day for bond markets. The dreams were sweet, at least, with 10yr yields drifting down to their best levels of the month--just under 2bps lower at 2.238% Fannie 3.5 MBS were up by an eighth of a point in the afternoon, but pulled back just a bit by the close. Lenders passed along at least as much in terms of price improvements (day over day), so it's hard to take exception to the lack of interesting data. Bored market-watchers could discuss things like the death cross in 10yr yields (as in the attached video), or ponder the importance of political headlines (Spicer resignation... hint: not a market mover). If anything the noticeable (and I use the term very loosely) upticks...(read more)

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21 Jul 2017 4:14 pm

Posted To: Mortgage Rate Watch

Mortgage rates moved lower today, setting yet another new low for the month of July. For the past 2 weeks, rates have been pushing back against a fairly abrupt spike that took place heading into the month. Concerns over the European Central Bank's (ECB's) bond buying plans sparked the move higher, but those concerns were officially put to rest as of yesterday. In simpler terms, extra demand for bonds pushes bond prices higher and rates lower. The ECB buys LOTS of bonds. This puts downward pressure on rates around the world (more so in Europe than in the US, but we still get some indirect benefit). There was some concern at the end of June that the ECB was getting closer to announcing it would buy fewer bonds (thus the rate spike heading into July). While that day will likely come eventually...(read more)

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21 Jul 2017 10:29 am

Posted To: MND NewsWire

It remains to be seen if it passes into law, or how it will hold up during the process, but housing industry groups say an agreement has been hammered out for renewing the federal flood insurance program . Both the National Association of Home Builders (NAHB) and the National Association of Realtors® (NAR) say they have been working with the House Financial Services Committee on parameters, for, in the words of NAHB, "A viable, long-term flood insurance reauthorization bill that will keep the National Flood Insurance Program (NFIP) fiscally sound and enable home builders to provide safe and affordable housing to consumers." A flood insurance policy is required of homeowners who live in certain Federal Emergency Management Agency (FEMA) designated flood plains and have a mortgage issued...(read more)

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