The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Zillow analyst on whether home prices can keep climbing

Today’s episode of HousingWire Daily features an interview with Nicole Bachaud, as she discusses annual and monthly home price appreciation growth, rising inventory levels and rent prices.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Politics & Money

For the housing market, look at bonds over MBS

Long term downtrend in bond yields is the real story

hand-money-HW+

This is the first time I am writing about mortgage backed securities (MBS) because I hardly ever consider this aspect of the housing market in my work. But since now even Federal Reserve members are discussing the pros and cons of MBS, this is a good time to give you my take.

The 10-year yield has been in a downtrend since 1981, and so have mortgage rates, so the MBS market hasn’t ever been a focus of mine. Recently though, I have been reading a lot of speculation that when quantitative easing ends, the U.S. housing market will be in trouble because mortgage rates will skyrocket and cause a crash in sales and prices that would amount to the second coming of the housing bubble. 

It is an easy argument to make that during the pandemic, the purchase of MBS by the Federal Reserve was needed to bolster the economy. Today, however, when inflation seems a larger negative talking point than economic sluggishness, it makes less sense that the Federal Reserve is still buying MBS.

However, why hasn’t the bond market blown up higher with solid economic growth, a whisper of when tapering will happen, and hotter than normal trend inflation. 

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