The U.S. housing slump caused mortgage bond prepayments to slow in November, but not as much as had been anticipated, according to reports. Speeds slowed by about 5%-7% for Fannies, Freddies and Ginnies, but had been expected to drop by about 11%. Along with the weak housing market, the decline is owed to tighter lending practices and a lower number of collection days--down to 20 from 22 the previous month. The average 30-year fixed mortgage rates slumped to 6.21% in November from 6.38% in October, according to Freddie Mac. The more seasoned coupons and vintages slowed the most, said analysts. Paydowns dropped to $31.7 billion in November from $33 billion the previous month, according to Credit Suisse. Meanwhile, the fixed-rate net issuance spiked to $49 billion from $37.3 billion. Analysts differ on what to expect in December. Credit Suisse predicts a 5%-10% slowdown in prepayments, while JP Morgan is eyeing a 4% dip.
-
Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
6h ago -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
7h ago -
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
April 24 -
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
April 24 -
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
April 24 -
The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
April 24