Potential homebuyers have been watching and waiting for mortgage rates to reach near-record lows. At the same time, with rates so impossibly low, now is perhaps the best possible time for potential homebuyers to take the plunge. The recent spike in mortgage rates is a double-edged sword for the housing market. With the government pulling its support of mortgage-backed securities (MBS) and artificially lowering mortgage rates, buyers will be repelled by rising rates. At the same time, rates are projected to continue to rise, so now could be the perfect time.Click to continue

Rates on the most popular types of mortgages leapt to the highest point in more than a years' time, according to HSH.com's Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages jumped by nineteen basis points (0.19 percent) to 3.99 percent. Conforming 5/1 Hybrid ARM rates increased by 10 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.74 percent.Click to continue

The Mortgage Bankers Association (MBA) has released "A Secondary Market that Works for Smaller Lenders," a concept paper suggesting that any reform to the secondary market must provide smaller lenders with equal access and execution opportunities, while also containing an explicit federal guarantee for certain mortgage-backed securities (MBS). MBA’s concept paper is the third piece of a five-part plan which recommends immediate steps the Federal Housing Finance Agency (FHFA) can take to ease the transition as policymakers debate the future of the government role in housing financeClick to continue

Ginnie Mae announced that it has guaranteed more than $39.95 billion in mortgage-backed securities (MBS) in April 2013. Issuance for Ginnie Mae II single-family pools led the way with more than $31.20 billion, while Ginnie Mae I single-family pools totaled nearly $8.75 billion. Issuance for the Ginnie Mae Home Equity Conversion Mortgage-Backed Security (HMBS), included in Ginnie Mae II single-family pools, was $972 million. Total single-family issuance for March was $37.81 billion. In addition, Ginnie Mae’s multifamily MBS issuance reached $2.146 billion for the month.Click to continue

There are a number of conflicting theories on what makes a company successful when they enter into, or have been, operating in a hedging environment. Some people like to express a very deep understanding of the secondary market and how it correlated to their pipeline and performance, while others feel it is truly dependent on the model that is being used to manage risk and execute a price. While these two ideas are very important, truly successful hedging is a result of balancing the two. This success is dependent on some mortgage and market fundamentals as well.Click to continue

The year 2013 could bring changes within the interest rate environment. While it is highly likely that interest rates will remain relatively low, even a small but sustained rise in rates could affect origination levels. Recent surveys indicate that a 50-basis point rise in rates, if sustained, could reduce production by about 30 percent. The Fed has indicated that it will keep rates low until 2015, yet there are many contributing factors that could cause some bumps in the road for mortgage interest rates.Click to continue

Ginnie Mae has announced that it guaranteed more than $36.44 billion in mortgage-backed securities (MBS) in March 2013. Issuance for the Ginnie Mae Home Equity Conversion Mortgage-Backed Security (HMBS), included in Ginnie Mae II single-family pools, was $889 million. Total single-family issuance for March was $34.18 billion. In addition, Ginnie Mae’s multifamily MBS issuance reached $2.26 billion for the month.Click to continue

Pro Teck Valuation Services’ Home Value Forecast (HVF) examines why home prices in some markets have been less responsive to low mortgage rates than would have been expected. In the past, it has been widely thought that interest rates decline when the Fed commits to buy mortgage-backed securities (MBS). This month's Lessons from the Data highlight why that phenomenon may be changing and demonstrates the differences between the housing markets in Chicago and Phoenix and why interest rates and other housing factors impact on home prices.Click to continue

Ginnie Mae has announced that it has guaranteed more than $41.21 billion in mortgage-backed securities (MBS) in December 2012. “Ginnie Mae has proven to be essential to the health of the housing finance market,” said Ginnie Mae President Ted Tozer. “Ginnie Mae’s MBS are a dependable source of liquidity for lenders who originate government-backed mortgage loans and for investors who rely on our guarantee.”Click to continue

The National Credit Union Administration (NCUA) has filed suit in Federal District Court in Kansas against JP Morgan Securities as successor-in-interest to Washington Mutual Bank, alleging violations of federal and state securities laws in the sale of $2.2 billion in mortgage-backed securities (MBS) to three corporate credit unions. Other defendants include WaMu Capital Corporation, Long Beach Securities Corporation, and WaMu Asset Acceptance Corporation.Click to continue