Seven Year Low in Foreclosures
The number of U.S. homes set on the path to foreclosure slid to a seven-year low in the third quarter, reflecting a gradually improving housing market and fewer homeowners falling behind on mortgage payments.
Lenders initiated foreclosure action on 174,366 homes in the July-September period, the lowest level since the second quarter of 2006, foreclosure listing firm RealtyTrac said Thursday.
Foreclosure starts declined 13 percent from the previous quarter and were down 39 percent from the third quarter last year, the firm said. Foreclosures peaked in 2010 at 1.05 million units and have been declining ever since.
The national slowdown in foreclosure starts comes as the U.S. housing market continues to recover from a deep slump, a rebound driven by rising home prices, steady job growth and fewer troubled loans dating back to the housing bubble days. Fewer homes entering the foreclosure pipeline should translate into fewer properties that eventually end up lost to foreclosure.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) lost -69 basis points from last Friday’s close which caused 30 year fixed rates to move upward. We saw our best rates on Monday and our worst rates on Thursday.
The bond markets were once again held hostage by the government shutdown which occurred October 1st. As a result, mortgage backed securities (MBS) traded in a narrow range with a well-defined ceiling of resistance that traders were unwilling to trade above due to the uncertainty of the length of the shutdown.
Several economic reports were not released. And the few reports that were released such as Initial Weekly Jobless Claims and Consumer Sentiment Index were weaker than expected.
We did have three Treasury auctions with the 3 year and 10 year notes seeing a pull-back in demand but the 30 year bond saw an improvement in demand.
The Federal Open Market Committee (FOMC) released the minutes from their last meeting. In the minutes, it was revealed that only one committee member voted to taper at the last meeting. However, there were several members that felt the economic conditions were improving and that they would be willing to taper by the end of the year. Of course that is off the table now due to the government shutdown and the corresponding drag to our economic growth.
President Obama officially nominated Janet Yellen as the next Federal Reserve chair which was widely expected.
|Date||Time (ET)||Economic Release||Actual||Market Expects||Prior|
|15-Oct||8:30 AM||Empire Manufacturing||–||4.5||6.3|
|16-Oct||7:00 AM||MBA Mortgage Index||–||NA||1.30%|
|16-Oct||8:30 AM||Core CPI||–||0.10%||0.10%|
|16-Oct||9:00 AM||Net Long-Term TIC Flows||–||NA||$31.1B|
|16-Oct||10:00 AM||NAHB Housing Market Index||–||57||58|
|16-Oct||2:00 PM||Fed’s Beige Book||–||NA||NA|
|17-Oct||8:30 AM||Initial Claims||–||330K||374K|
|17-Oct||8:30 AM||Continuing Claims||–||2900K||2905K|
|17-Oct||8:30 AM||Housing Starts||–||915K||891K|
|17-Oct||8:30 AM||Building Permits||–||932K||918K|
|17-Oct||9:15 AM||Industrial Production||–||0.30%||0.40%|
|17-Oct||9:15 AM||Capacity Utilization||–||78.00%||77.80%|
|17-Oct||10:00 AM||Philadelphia Fed||–||7||22.3|
|17-Oct||10:30 AM||Natural Gas Inventories||–||NA||90 bcf|
|17-Oct||11:00 AM||Crude Inventories||–||NA||6.807M|
|18-Oct||10:00 AM||Leading Indicators||–||0.60%||0.70%|
I will be watching these reports closely for you and let you know if there are any big surprises:
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.