Well That Makes Sense – Page 2 – WTMS Well That Makes Sense

“Damn, there is so much great knowledge out there. Did you know that “BOOKS” are full of smart?? No, I mean like life changing, I-wish-I-knew-that-years-ago type stuff.

I know that I was waaaayyy late to the game figuring it out. And I know that a lot of you are too busy to read as much as you ‘should’. And that is why you need me.

I still remember how it started for me. It started in June of 2008. After 11 years …..Click to continue

Mortgage Today (AM) - 05/01/26

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May 1, 2026

WTMS Blog Today = What's up in Mortgage Today (AM) - 05/01/2026 Jerome Powell just blocked Trump from removing him as a sitting Fed governor, and the Fed's most divided meeting in 34 years signals deeper discord over future rate cuts. Eight Fed governors voted to hold rates at 3.5%-3.75%, but four dissents came from different camps: one wanting immediate cuts while three opposed forward guidance suggesting cuts ahead. Powell's decision to remain on the Board after his May 15 chairmanship ends marks an unprecedented stand for Fed independence that will reshape mortgage market expectations. Homeowners insurance premiums jumped 64% from end of 2021 to end of 2025, climbing from $1,597 annually to $2,625 nationally, with Louisiana, Florida, and Texas now averaging above $3,900 per year. These escrow-related increases directly tighten borrower debt-to-income ratios and are quietly killing deals in high-exposure states like Florida and Arizona. For mortgage originators, this insurance shock has become a hidden pricing and approval barrier that rivals rate sensitivity in many markets. UWM launched dual-credit scoring for conventional loans, automatically running both FICO and VantageScore 4.0 and letting brokers pick whichever helps the borrower's pricing. The move follows FHFA's green light for VantageScore on Fannie and Freddie loans, with FHA adoption coming this year from HUD. Originators can now help borrowers qualify under alternative scoring models when traditional FICO metrics create obstacles, expanding access at 80% LTV or below. Castlelake and Redwood Trust partnered to acquire up to $8 billion in prime jumbo mortgages, with Redwood's Sequoia platform sourcing loans while Castlelake provides institutional capital. Sequoia's loan volume doubled over the past year as banks retreated from mortgage lending, signaling continued shift toward non-bank securitization platforms. This $8 billion channel reinforces the growing role of specialty players in distributing jumbo originations outside traditional bank channels. Jobless claims fell to 189K versus a 215K forecast, suggesting labor tightness remains despite cooling data elsewhere, while core PCE inflation came in exactly as expected at 0.3% monthly and 3.2% annually. Q1 GDP grew only 2.0% versus 2.3% expectations and employment costs rose 0.9%, beating forecast by a pip and signaling wage pressure. These mixed signals—strong labor, moderating growth, stable inflation—left yields relatively flat despite oil market recovery providing brief support. The 10-year Treasury yield rose 1.2 basis points to 4.383% early Friday as UMBS 5.5 and 6.0 coupons declined modestly while 5.0s held steady, and GNMA securities tracked similarly with slight losses across mid-higher coupons. Yesterday's yield peaks coincided technically with March 24-26 levels, which could signal a bounce if yields stabilize under 4.37%, though geopolitical headlines remain the primary volatility driver. Mortgage traders should watch whether the Fed's Powell decision and mixed economic data can support a meaningful bond rally or if war-related risk keeps the ceiling in place. **Locking vs Floating** Originators face a technical inflection point where recent yield highs meet historical support levels from late March. A technical bounce could emerge if 10-year yields hold under 4.37%, but geopolitical conflict remains the dominant volatility trigger rather than pure economic data. Strong jobless claims and moderating GDP growth provide some yield support, yet employment cost surprises and insurance cost shocks create counterpressure on borrower qualification capacity. Lock vs. float decisions should weigh this geopolitical ceiling alongside the mixed labor-versus-growth picture. **Today's Events** Continued Claims (Apr/18): 1,785K vs. 1,820K forecast, 1,821K prior Jobless Claims (Apr/25): 189K vs. 215K forecast, 214K prior Core PCE (m/m) (Mar): 0.3% vs. 0.3% forecast, 0.4% prior Core PCE (y/y) (Mar): 3.2% vs. 3.2% forecast, 3% prior PCE (y/y) (Mar): 3.5% vs. 3.5% forecast, 2.8% prior PCE prices (m/m) (Mar): 0.7% vs. 0.7% forecast, 0.4% prior Core PCE Prices QoQ (Q1): 4.3% vs. 4.1% forecast, 2.7% prior Employment Costs (Q1): 0.9% vs. 0.8% forecast, 0.7% prior GDP (Q1): 2.0% vs. 2.3% forecast, 0.5% prior **Bond Pricing** **UMBS 30 yr** | Coupon | Price | Intra-Day Change | **GNMA 30 yr** | Coupon | Price | Intra-Day Change | **Treasuries** | Term | Yield | Price | Intra-Day Yield Change | **UMBS 30yr** | Coupon | Price | Intra-Day Change | |---|---|---| | 5.0 | 98.75 | 0.01 | | 5.5 | 100.62 | -0.04 | | 6.0 | 102.15 | -0.04 | **GNMA 30yr** | Coupon | Price | Intra-Day Change | |---|---|---| | 5.0 | 99.34 | 0.01 | | 5.5 | 100.81 | -0.02 | | 6.0 | 101.99 | -0.06 | **Treasuries** | Term | Yield | Price | Intra-Day Yield Change | |---|---|---|---| | 2 yr | 3.867 | 100.015 | -0.002 | | 3 yr | 3.888 | 98.912 | -0.002 | | 5 yr | 3.998 | 99.448 | -0.005 | | 7 yr | 4.18 | 100.424 | -0.007 | | 10 yr | 4.364 | 98.082 | -0.007 | | 30 yr | 4.961 | 96.723 | -0.005 | Subscribe free to WTMS at WellThatMakesSense.com for daily mortgage market intel. Market Data

Mortgage Today (PM) - 04/30/26

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April 30, 2026

WTMS Blog Today = What's up in Mortgage Today (PM) - 04/30/2026 Bonds shook off geopolitical nervousness and rallied into the close as oil prices retreated, pulling the 10-year yield down to 4.383% by 3:21 PM. MBS prices climbed 31 basis points on the day, signaling genuine bid strength in mortgages despite a heavy economic data dump that included strong jobs reports and sticky wage inflation. Yesterday's yield spike to 4.66% now looks like a potential technical ceiling—a pattern eerily similar to March 24–26 that could support another bounce if yields hold under 4.37%. The real question for originators isn't whether this bounce holds; it's whether this choppy, 30+ basis point intraday range becomes the new normal. This volatility destroys pipeline clarity and makes rate locks harder to sell when clients see the market swinging wild. The Fed held rates flat yesterday but signaled serious internal division with four dissenting votes—the most since 1992. That split matters far more than the hold itself because borrowers don't care what the Fed did; they care what comes next, and a fractured FOMC sends no clear signal about rate direction. With Powell's tenure ending soon and his successor uncertain on inflation strategy, the market is pricing in "higher for longer with surprises," which is exactly the environment where origination suffers most. You can defend a 7% rate world if clients believe rates go higher. You can defend a 4% world if clients see cuts ahead. But a 4.38% world with a confused Fed heading into a leadership transition? That's when lock-unlock hesitation paralyzes pipelines. Economic data arrived mostly in line with expectations, which actually worked in bonds' favor by removing surprise risk. Jobless claims fell to 189K versus 215K forecast—the lowest reading in over three years—but mortgages barely flinched, suggesting the market is already pricing in labor strength. Core PCE inflation matched expectations at 0.3% month-over-month and 3.2% year-over-year, offering no fresh inflation shock. GDP came in at 2.0% annualized versus 2.3% expected, which is softer but not recessionary and not enough to spark a rate-cut narrative. When data cooperates this way, technicals and sentiment dominate, which is why the oil correlation mattered more than any single number on the calendar. UMBS 30-year coupons posted solid intraday gains across the curve: the 5.0% coupon climbed 40 basis points to 98.75, the 5.5% gained 28 basis points to 100.66, and the 6.0% rose 20 basis points to 102.18. GNMA securities trended similarly but with slightly softer momentum, suggesting institutional demand is favoring agency UMBS paper over government mortgage-backed bonds. Treasury volatility compressed—the 2-year yield fell 8.2 basis points while the 30-year fell only 3.3 basis points—indicating a modest flattening bias as longer rates held firmer. For lenders holding hedges, this curve behavior creates both cover-your-short opportunities and risk if the steepening resumes. The 10-year Treasury yield's technical floor at 4.34–4.37% is now the most important level for originators to watch over the next 48 hours. If that breaks lower, expect another 4–6 basis point decline in primary mortgage rates as the market tests the 4.28–4.19% ceiling range, which could unlock a small wave of refi activity and ease origination pressure. If yields bounce back above 4.40% instead, we're back to the rangebound chop that killed productivity all April, and clients will hunker down until the Fed narrative clarifies or a new leadership team emerges. War-related headlines will likely remain the wildcard—small geopolitical flare-ups are now triggering 2–3 basis point swings faster than any economic release. The real origination test isn't today's 31-basis-point MBS pop; it's whether lenders can convince borrowers that a fragmented Fed and 4.38% rates justify locking sooner rather than later. Hesitation thrives in this gray zone where no direction is clear and surprise risk cuts both ways. Lock your stronger files while technicals favor yields under 4.40%; float only if you've earned enough pipeline flow to afford the volatility tax. The next 72 hours will tell us if this bounce is real support or just another false signal before yields resume climbing. **Locking vs Floating** Yesterday's yield spike and today's oil-driven rally illustrate why technical ceilings matter: if 4.66% was a genuine blow-off top, then yields pulling back under 4.40% could indicate early support forming. From a purely technical view, yesterday's high yields matched those seen on March 24–26, suggesting this level has tested buyer interest twice before. From a market psychology view, volatility will continue to stem from geopolitical headlines and Fed messaging confusion, not from economics alone. Lock borrowers in the 4.34–4.40% range; float if you're chasing risk premium on a potential dip toward 4.20%. **Today's Events** Continued Claims (Apr)/18: 1,785K vs 1,820K forecast, 1,821K prior Core PCE (m/m) (Mar): 0.3% vs 0.3% forecast, 0.4% prior Core PCE (y/y) (Mar): 3.2% vs 3.2% forecast, 3.0% prior Core PCE Prices QoQ Q1: 4.3% vs 4.1% forecast, 2.7% prior Employment Costs Q1: 0.9% vs 0.8% forecast, 0.7% prior GDP Q1: 2.0% vs 2.3% forecast, 0.5% prior Jobless Claims (Apr)/25: 189K vs 215K forecast, 214K prior PCE (y/y) (Mar): 3.5% vs 3.5% forecast, 2.8% prior PCE prices (m/m) (Mar): 0.7% vs 0.7% forecast, 0.4% prior **Bond Pricing** **UMBS 30 yr** | Coupon | Price | Intra-Day Change | **GNMA 30 yr** | Coupon | Price | Intra-Day Change | **Treasuries** | Term | Yield | Price | Intra-Day Yield Change | | 2 yr | 3.865 | 100.02 | -0.082 | | 3 yr | 3.889 | 98.908 | -0.078 | | 5 yr | 4.003 | 99.426 | -0.074 | | 7 yr | 4.186 | 100.384 | -0.065 | | 10 yr | 4.371 | 98.024 | -0.057 | | 30 yr | 4.966 | 96.646 | -0.033 | Market Data

Mortgage Today (PM) - 04/29/26

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April 29, 2026

WTMS Blog Today = What's up in Mortgage Today (PM) - 04/29/2026 Mortgage-backed securities ended the day down 56 basis points on 30-year UMBS 5.0, as geopolitical tensions over Iran's Strait of Hormuz blockade combined with a hawkish Fed tone to push bonds lower. The 10-year Treasury climbed 8.1 basis points to 4.429%, reflecting investor concerns about sustained energy inflation and limited rate-cut expectations. Markets initially absorbed the Fed's quarter-point hold steadily, but four dissenting votes—the most since 1992—signaled pushback against the "easing bias" language, unsettling bond traders and locking in afternoon losses. War-related supply shock fears dominated today's volatility more than any Fed policy misstep. Overnight weakness began with news of a potential U.S. blockade extension at the Strait of Hormuz, pushing oil upward and yields across the curve higher before the Fed even opened its mouth. The central bank statement removed no policies and added measured caution about Middle East "implications," stopping short of dovish reassurance that mortgage originators might have hoped for. By 4:54 p.m., when losses reached their deepest, geopolitical anxiety had completely overshadowed any positive rate-cut signal the Fed could offer. Mortgage originators should note the absence of overhead technical support in the 10-year yield, which sits just below 4.43% with a ceiling at 4.48% now under pressure. MBS weakness accelerated as GNMA and UMBS securities across all coupon points finished the day in negative territory, mirroring a broader flight to safety in Treasury markets. Originators holding rate locks face margin compression if this weakness persists, and pull-through rates are likely to suffer as clients lose confidence in near-term refinancing upside. Lock recommendations remain defensive pending resolution of energy volatility or clearer Fed guidance on the path forward. Economic data mixed signals with soft housing permits offset by robust durable goods and capital expenditure readings. The MBA Purchase Index came in at 177.7 versus 175.6 previously, showing mild purchase momentum despite elevated rates, while refi activity dropped to 977.9 from 1,023.1 as rates above 4.4% discourage rate-and-term business. Housing starts beat expectations at 1.502 million units, suggesting builders are still moving forward despite cost headwinds tied to new HUD energy efficiency rules now being phased out. For originators, this means the spring purchase season may not collapse, but refi pipelines will stay thin. A critical policy shift emerged as HUD scrapped Biden-era energy efficiency standards that had choked off new construction lending in entry-level and rural markets. FHA and USDA programs can now process loans tied to homes failing to meet those stricter codes, unlocking deal flow that had migrated to private programs or stalled entirely. This change particularly helps loan officers working in affordable housing and rural markets, where cost barriers had become insurmountable; expect an uptick in FHA/USDA volume once word spreads through the correspondent and broker channels. Real estate professionals should see improved transaction feasibility in markets that had been locked out. AI-driven automation is rapidly reshaping the origination landscape, with industry executives openly discussing 15% workforce reductions tied to partnerships with companies like Valon and HomeVision. The technology is moving beyond documentation efficiency into full underwriting and valuation automation, raising the question of whether the mortgage industry is entering an "efficiency era" where human roles shrink permanently or pivot to relationship management only. For loan officers and support staff, the implication is clear: survival depends on mobility into advisory, compliance, or specialized roles that machines cannot yet replicate. Locking vs Floating Defensive positioning remains prudent until overhead resistance clears. The market pain from Iran geopolitics should eventually self-limit—oil spikes high enough to choke economic growth and yields rise enough to attract value buyers—but the inflection point is unknowable. Absence of technical support argues against aggressive floating; lock any client showing hesitation. Today's Events MBA Purchase Index (Apr): 177.7 vs 175.6 previous MBA Refi Index (Apr): 977.9 vs 1,023.1 previous Mortgage Market Index (Apr): 298.5 vs 303.3 previous Building Permits (Mar): 1.372M vs 1.39M forecast, 1.538M previous Building Permits (Feb): 1.538M vs 1.386M previous Core CapEx (Mar): 3.3% vs 0.5% forecast, 0.6% previous Durable Goods (Mar): 0.8% vs 0.5% forecast, -1.4% previous Housing Starts (Mar): 1.502M vs 1.40M forecast Bond Pricing UMBS 30 yr | Coupon | Price | Intra-Day Change | GNMA 30 yr | Coupon | Price | Intra-Day Change | Treasuries | Term | Yield | Price | Intra-Day Yield Change | Market Data

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