Loan Originator Satisfaction Poll

To my fellow mortgage loan originators, this is an interesting survey to review.

http://www.teamhammerhouse.com/2013/04/22/3rd-annual-originator-opinion-survey/

BG

Big Money in Real Estate

Here is an interesting article How Big Money Took Over Real Estate

The Jumbo Mortgage Market Healing

Good morning all! Happy Monday. So, I am sipping my morning coffee, enjoying the nice weather of the day reading news on secondary market bundling and sale of non-conforming (jumbo) mortgages. Seeing some sales is good news as the entire secondary market for these mortgages literally vanished in late 2008.  Zippo.  Gone! As the credit quality of these securities is now better from the tighter underwriting and rigid auditing on the new loan originations we are seeing market forces, investors seeking yield, come back. What's happened of late? Well, JP Morgan recently priced a deal of $570 million.  Everbank, a lender in Florida, had their first issuance of $308 million.  There deal was comprised of 30 and 15 year fixed rate mortgages.  Redwood Trust, a REIT in California, sold their 4th deal of the year.  Wells Fargo and Credit Suisse are working on new offerings as well. These are good signs as these secondary market operations come back.  We all benefit from an active marketplace that will act as a conduit to bring capital to non-conforming mortgages and keep those rates low. Now, let's keep this in perspective.  In 2012, the mortgage market was a $1.8 trillion marketplace but only 10% of it was non-agency (Freddie Mac, Fannie Mae, Ginnie Mae, FHA, VA) paper. Have a great week! Brett www.brettgrendahl.com

Lower Mortgage Rates Ahead

Yeehaw!

That's what I thought to myself when I saw the chart below showing mortgage bonds breaking up (higher price) from this chart pattern.

I'd been watching for this and happy to relay the technical breakout.

This should result in lower mortgage rates in our near future.

Remember, I am able to lend in all 50 states so if you or someone you know has need for mortgage financing, please give me a chance to show you how you have a choice to work with me or with everyone else and why there is a difference.

Happy Friday!  Have a fantastic weekend!  -- Brett

www.brettgrendahl.com

Mortgage Bonds Look Ripe for a Breakout

Just got back from a fun and sun filled trip with my two young kids (4 and 5) visiting friends in Palo Alto, CA the past few days.

Finally getting a chance to scan the recent trading action of mortgage-backed securities and with one quick glance at the chart below, the price action sure looks ripe for a run higher.

Check this out.

Now, this chart might not make sense to you but to me this is an ideal setup for higher prices (lower mortgage rates) ahead.

This will likely unfold in tandem with continued pullback in the equity markets.  I sure hope so as I have an existing bet on some Put options on the Dow Jones Industrial Average.

Let's see what this next week brings.

I'll be back with analysis within a few days.  Cheers!

BG

www.brettgrendahl.com

3 Month Outlook on Mortgage Rates

Good morning!

So, a pair of ducks was walking down the middle of my street this morning, saying hi.  A nice sign of spring and the change of season!

Saw Lake Tahoe had 10 inches of snow last night, wish I was driving up for a ski trip from my old place.

But, back to spring!

Take a look at this 6 month chart on the FNMA 3o Year 3% coupon trading.  Take a look and then I'll continue on with what we can derive from it.

FNMA 30 Year 3%

Do you see that green trend line I drew?

That line shows the area in price where resistance to further upward movement exists.  However, in early April the price broke through.  Interesting to note as it appears this is the clue to the trend change in motion.

After breaking through this resistance area, the price came back down and has since went up.  This shows a base of price support now exerting itself.

What does this mean for our future?

Expect mortgage bonds to be in a 2-3 month upward move.  This should bring us slightly lower mortgage rates in the months ahead.

Heck, with the Dow Jones hitting a record high why not set a new record low for mortgage rates?

Seems to make sense with the nonsense of today's financial markets!

Brett

www.brettgrendahl.com
@brettgrendahl

Fun Post: Can You Read This?

Arocdnicg to rsceearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteer are in the rghit pcale. The rset can be a toatl mses and you can sitll raed it wouthit pobelrm. Tihs is buseace the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe.

Inst Taht Amzanig!  - Brett