Jul. 24, 2007: Mortgage Market Commentary Rob Chrisman
Treasuries are mostly unchanged this morning amongst speculation that data due out later this week will point to a slowing economy and the worst housing slump in 16 years. Currently, the 2yr is +.5/32 (4.792), the 5yr is +.75/32 (4.854), and the all-important 10yr is unchanged (4.964). Today, albeit a minor data contributor, the Richmond Fed Manufacturing Index is expected to show another increase of 1pt, off of last months +14pts. If there’s ever a moment of uncomfortable silence while on a date, while the dentist changes drilling bits, or while the state trooper is writing your ticket, you can always break out with “……the Richmond Fed Manufacturing Index is a gauge of broad activity in the districts manufacturing sector. It is a composite index representing a weighted average of the shipments (33% of the number), new orders (40% of the number), and employment (27%).”
Also, later this morning the US Treasury will auction off $6 bln in 20yr TIPs (a TIP is a treasury inflation protected security, whose principal increases at the same rate as the consumer price index). In a very broad sense, TIP auctions can show investor sentiment with respect to inflation.
In the ever changing credit markets we live in, investors have been changing the guidelines for which they will purchase loans. On Friday, First Franklin announced changes to their underwriting guidelines, which include (per their website):
· Regardless of CLTV, First Franklin no longer offers subordinate financing. This includes both First Franklin and non-First Franklin 2nd liens with either our Core or Alt-A products.
· The 3/27 ARM product has been discontinued. The 5/25 ARM product is available and not affected by this change.
· The Alt-A Monthly Option ARM is no longer available. Our Hybrid Option ARM and Fixed Payment Option loans are unchanged and available with full doc, stated and no ratio documentation types for purchase, rate and term or cash-out refinance transactions.
For more information visit First Franklin’s website; click here
80,000+ mortgage professionals get this every weekday morning.
By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact