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HOME2023-01-22T13:43:33-07:00

“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 (PM) - 10/09/26 {{catlist}}
October 9, 2026 READ MORE Now reading the articles per the instructions. None of the links in the email content are direct news article URLs that meet the fetching criteria. The links are all tracking links, email platform redirect links, or registration pages. Per the instructions, I will skip silently and proceed to write the blog post. **WTMS Blog Today = What's up in Mortgage Today (PM) - 10/09/2026** The mortgage bond market delivered a modest bounce this week despite persistent headwinds, with UMBS and GNMA securities posting small intraday gains as 10-year Treasury yields carved out a two-day low near 5.22 percent. After Wednesday's aggressive rally that briefly touched best levels in four trading days, the week finished with Friday's sideways action before the Columbus Day weekend, signaling that the market remains cautious rather than convinced of a sustained reversal. Most importantly for originators, mortgage prices finished the week near their best levels, offering a rare window for positive reprices even as underlying rate pressure continues. The persistent culprits behind elevated yields remain largely unchanged: geopolitical tensions fueling inflation fears and increased Treasury issuance, corporate bond competition for investor demand, resilient economic data refusing to roll over, and a Federal Reserve willing to defend its inflation-fighting stance. War-related headlines provided mid-week relief and triggered the stronger two-day sequence, yet oil prices and fiscal concerns remind the market that any relief could prove fleeting. The key technical level to watch remains a sustained break below 5.20 percent in the 10-year yield, which would signal genuine phase-one progress toward a legitimate turn. Earnings season momentum and stock market strength are creating an unusual disconnect: the Magnificent Seven technology stocks are driving equity gains with expected third-quarter earnings growth far outpacing the S&P 500 average, while mortgage lending volume fell 15 percent year-over-year in September. Bank trading revenues are expected to reach nearly $19 billion across major firms next week, yet mortgage originator forecasts point to quarter-over-quarter declines of seven to ten percent. This bifurcated economy—booming tech, struggling housing—means originators must navigate thinner gain-on-sale margins and more difficult pipeline hedging. Credit bureaus Equifax and TransUnion both announced new cost-reduction tools this week aimed at giving lenders more flexibility over when they order scores and what they pay. Neither bureau disclosed specific savings amounts, raising legitimate questions about whether any reductions would benefit borrowers or simply improve lender margins. The move highlights the industry's ongoing push for competition and lower credit costs in an environment where every basis point of profit matters. Mortgage prepayment speeds decelerated sharply in September with Fannie Mae speeds falling seven percent month-over-month to 6.7 CPR and Ginnie Mae speeds dropping ten percent to 7.6 CPR, leaving fewer than one percent of outstanding mortgages economically attractive to refinance. Servicer-level data reveals meaningful differences in borrower behavior: Rocket remains among the fastest-paying servicers while Idaho HFA has ranked among the slowest for fourteen consecutive months. These variations underscore why investors must look beyond headline averages when evaluating mortgage-backed securities performance. Lock or hold decisions remain data-dependent as the market waits for next week's inflation figures and further Fed guidance before committing to the "big reversal" narrative. A sustained drop below 5.00 percent in late November would confirm a legitimate turning point, but betting on immediate continuation remains risky given ongoing fiscal pressures and geopolitical uncertainty. Borrowers closing in the next few weeks should consider capturing any improvement rather than hoping for steady declines. **Locking vs Floating** Two consecutive days of gains have created an inflection point worth monitoring, yet the market is not jumping into a "big reversal" trade with full conviction. A sustained break below 5.20 percent would mark phase-one progress, but true confirmation requires a move below 5.00 percent by late November. Until that threshold is reached, rallies should be viewed as tactical opportunities rather than evidence of a fundamental shift in bond market momentum. **Today's Events** Friday brought consumer sentiment data with October readings showing weakness as gasoline prices, elevated borrowing costs, and hiring slowdowns weighed on households. No major economic data is expected over the three-day weekend. **Bond Pricing** **UMBS 30 yr** | Coupon | Price | Intra-Day Change | | 5.5 | 95.66 | 0.09 | | 6.0 | 98.27 | 0.05 | | 5.5 | 96.04 | 0.57 | **GNMA 30 yr** | Coupon | Price | Intra-Day Change | **Treasuries** | Term | Yield | Price | Intra-Day Yield Change |

Market Data Mortgage Today (AM) - 10/09/26 {{catlist}}
October 9, 2026 READ MORE **WTMS Blog Today = What's up in Mortgage Today (AM) - 10/09/2026** Bonds staged a modest rally Thursday after Fed official Chris Waller's hawkish comments spooked markets in early trading, but Treasury yields retreated from multidecade highs as oil prices fell and geopolitical tensions eased around Iran. The 10-year yield closed near 5.23%, down from earlier peaks around 5.34%, signaling that investors remain torn between inflation concerns and hopes for relief. UMBS 6.0 coupons finished Thursday around 97.78, holding most of their recent losses. Initial jobless claims fell to 197,000 for the week ending October 3, reinforcing that labor markets remain resilient despite some softening in continued claims data. The calendar ahead is extremely light, with only preliminary University of Michigan Consumer Sentiment and Boston Fed President Collins's remarks on tap. Thursday's Treasury auction cycle showed solid demand at the longer end of the curve, with the 30-year sale generating a 2.54x bid-to-cover ratio and nearly 94% of awards going to non-dealers—well above historical averages. This strong indirect bidding suggests institutional investors still see value despite the elevated yield environment. The Treasury's $6 billion long-end buyback program also provided price support. However, the follow-through after the auction was mixed, as bonds cheapened once the real buying pressure subsided. Mortgage originators should note that while Thursday's rally felt encouraging, it represents a technical bounce rather than a fundamental break in the relentless uptrend that has dominated since late August. Servicer-level prepayment speeds reveal meaningful differences in borrower behavior across originator platforms. Rocket/Quicken continues to lead as the fastest payer on both 30-year and 15-year UMBS loans, while Freedom Mortgage and Fifth Third rank among the quickest on longer-dated securities. Conversely, Bank of America, loanDepot, and Provident frequently trail as the slowest servicers on 30-year pools, with Lakeview, JPMorgan Chase, and Provident lagging on 15-year mortgages. These servicer-specific patterns have persisted for months, suggesting structural differences in loan origination, customer demographics, or operational practices. September mortgage prepayments continued their sharp deceleration, with Fannie Mae speeds falling to 6.7 CPR—the slowest pace since April 2025—as rates climbed from 5.98% in February to 7.28% by early October. Equity markets bounced Friday as oil prices slipped below $103 per barrel and investors digested OpenAI's guidance that it will hit $70 billion in annualized revenue by year-end. The S&P 500 futures rose 0.4% and Nasdaq 100 contracts climbed 0.9%, buoyed by relief that the artificial-intelligence investment boom remains on track despite rising borrowing costs. President Trump's statement that the U.S. will not attack Iran before the midterm elections eased geopolitical risk, removing a major inflation catalyst that had pushed crude prices higher. European markets rallied as well, with the Stoxx 600 rising 1.2% and French bonds outperforming as political uncertainty began to fade. The narrowing of the French yield premium over German debt—from 160 basis points to under 130—signals that global bond-market stress, while still elevated, is moderating. September mortgage fundings declined 15% year-over-year and 10% month-over-month, according to Curinos proprietary data drawn directly from lenders. The average 30-year conforming retail funded rate in September stood at 6.58%, up 8 basis points from August and 10 basis points from last year. Refinance rates climbed 15 basis points month-over-month and 20 basis points year-over-year, while purchase rates rose a more modest 7 basis points month-over-month. Mortgage volume weakness reflects both the higher-rate environment and the dwindling pool of economically viable refinance candidates—currently estimated at only 0.5% of outstanding mortgages. Lenders should prepare for continued volume headwinds through year-end unless rates reverse meaningfully. Capital markets execution remains a core focus for originators looking to capture margin that best-efforts delivery leaves on the table. Polly announced a partnership with newly launched F9 Advisors, a capital markets execution firm led by former Compass Analytics leaders including Brandon Story and Virgil Caselli Jr. F9 will run pipeline hedging, lock desk operations, and loan sales inside the Polly operating system, ensuring that data, pricing, and positions remain entirely within the lender's platform and visible to leadership. This model allows lenders to scale capital markets expertise without building expensive internal teams or switching technology stacks. Rob Kessel, founder of Compass Analytics and Panoramic Capital Academy, serves in an advisory capacity to the partnership. **Locking vs Floating** Rates have climbed relentlessly since late August, with the 10-year yield hitting multidecade highs near 5.34% this week before modest recovery Thursday. Originators should remain defensive until the market proves it can sustain a correction—roughly 6 basis points of decline per day for at least two consecutive days. Multiple structural headwinds persist: geopolitical inflation from Middle East conflict, elevated Treasury issuance fueled by fiscal deficits, strong corporate bond issuance competing for investor money, resilient stocks and AI investment drawing capital away from bonds, gradual decline in foreign demand partly driven by tariffs, and a Federal Reserve willing to use rate hikes as its inflation-fighting tool. A meaningful rally would require a sustained break below the 5.20% level, though true risk-reward does not improve materially until yields reach the 5.00% range in late November. **Bond Pricing** **UMBS 30 yr** | Coupon | Price | Intra-Day Change | | 5.5 | 95.38 | -0.19 | | 6.0 | 98.04 | -0.18 | | 5.5 | 95.77 | 0.30 | **GNMA 30 yr** | Coupon | Price | Intra-Day Change | **Treasuries** | Term | Yield | Price | Intra-Day Yield Change |

Market Data Mortgage Today (PM) - 10/08/26 {{catlist}}
October 8, 2026 READ MORE **WTMS Blog Today = What's up in Mortgage Today (PM) - 10/08/2026** Bonds staged a genuine two-day rally that markets are calling the first real turning point since yields broke above 5.3% earlier this fall. The 10-year Treasury dropped 6.3 basis points to 5.225% by mid-afternoon, with UMBS 6.0 coupons gaining 42 basis points to 98.25. MBS pricing strength and a stronger-than-expected 30-year bond auction provided additional conviction to the move. Today's action follows Wednesday's modest recovery, creating a momentum pattern worth monitoring. However, analysts caution this remains embryonic and needs sustained conviction to confirm a real shift in direction. The rally drew support from war-related headlines and what appears to be classic "buy the dip" behavior at key yield ceilings around 5.33–5.35%. Investors appear to be testing whether the bond market's recent selling pressure has finally exhausted itself. Fed funds futures for mid-2027 moved alongside the 10-year yield, suggesting the market is repricing expectations for future rate decisions. Treasury auction results turned surprisingly solid after the rally had already pushed prices higher. The exact catalysts remain somewhat opaque, leaving traders to construct competing narratives about fundamental drivers. Seven structural headwinds continue to support elevated rates across the curve: geopolitical inflation concerns tied to ongoing conflicts, massive Treasury issuance from fiscal imbalances, heavy corporate bond supply competing for investor demand, resilient equity markets absorbing capital that might otherwise flow to bonds, weakening foreign demand partly driven by tariff uncertainty, genuinely strong economic data, and a Federal Reserve willing to deploy its rate tool aggressively. These factors remain anchored in place regardless of two good trading days. Without a meaningful shift in one or more of these elements, the rally faces headwinds that could reassert themselves quickly. Morning trading started weak after Fed Vice Chair Chris Waller reiterated that more rate hikes were needed given strong economic growth and persistent inflation concerns. His comments spooked the short end of the curve at 4:30 a.m. Eastern, pushing Fed funds futures for next year higher and dragging near-term yields with it. Rising oil prices added pressure to the bearish sentiment early on. By mid-morning, however, the tone shifted as bonds recovered almost entirely, closing out the overnight weakness without obvious new catalyst. The disconnect between morning hawkishness and afternoon strength illustrates how fragile the current sentiment remains. For originators, today's modest relief should not trigger aggressive locking strategies until the market proves it can hold gains consistently. A sustained break below 5.20% on the 10-year would represent phase one confirmation, but real conviction requires the market to close November below 5.00%. Historical precedent shows that yield rallies from peaks can run anywhere from 30 basis points over six weeks to extreme examples of 100 basis points in two months, depending entirely on economic shifts. Lock decisions should remain calibrated to client demand rather than the belief a major correction is underway. Lenders holding rate sheets steady through this volatility are positioned safely regardless of which scenario unfolds. **Locking vs Floating** Treasury auctions and yield-support levels matter more than intraday price swings when deciding lock positioning. The market appears to be testing whether 5.33–5.35% on the 10-year acts as a hard ceiling for investor demand, and today's action suggests it may be holding. A confirmed break below 5.20% would signal phase one of a potential correction, though November data and economic conditions will determine whether any rally sticks. Until the market demonstrates sustained momentum—ideally through month-end—borrowers in no rush should stay floating, while those with committed purchase deadlines should consider locking to protect certainty. **Today's Events** October 8, 2026: Initial Jobless Claims (8:30 a.m. ET) expected at 200K vs. prior 197K; Continued Claims (8:30 a.m. ET) expected at 1,710K vs. prior 1,701K. **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 |

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