Wednesday, March 26, 2014

Mortgage Rates Are Skyrocketing And It Is Only Going To Get Worse! Banks Are Beginning To Realize Once The Fed Is Out, There Is No Secondary Market For Mortgage Backed Securities…

The 30yr/15yr mortgage rates just spiked, almost 5% for the 30yr now. Does anybody have any idea what is going on? Seems weird it would spike suddenly like this. Anybody watch the 10yr/30yr treasury yields?
 
This is tied to Taper and the fact the Federal Reserve isn’t going to be buying every trash piece of MBS the banks can throw together anymore…
Banks are beginning to realize once the Fed is out, there is no secondary market for Mortgage Backed Securities…
Especially when they are discounted in your risk based capital as a tier II or tier III asset.
Fed’s Plosser – Worried About Risks Of Exit
“I think our balance sheet is very large,” Philadelphia Federal Reserve Bank President Charles Plosser told CNBC on Tuesday. “I am worried about the exit & sort of what the unintended consequences may be.”
Case Shiller Home Price Index Declines For Third Month A Row: Longest Negative Stretch Since March 2012
Another month, another sequential drop in the Case Shiller NSA index – the one the index creators themselves say should be used, not the Seasonally Adjusted data used by most commentators eager to find the best data. At a sequential decline of -0.08% in January, this was the third drop in a row – the longest consecutive period of sequential declines since March 2012  – and post a year over year increase of 13.24%, down from 13.38% in December, and the lowest since September 2013. Clearly, the pricing gains across the country are slowing.
ALBERT EDWARDS: The Next Shock Will Be Enough To Send The Economy Into Recession
Out of Gas: Most Americans Can’t Afford New Cars
HUGE DISAPPOINTMENT FROM THE RICHMOND FED
“Shipments and the volume of new orders declined,” reported the Richmond Fed. “Manufacturing employment remained flat, while the average workweek edged up and wages rose moderately.”
richmond fed index
Richmond Fed
Saddletramp

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