Life at 6%

The expectation is that the Federal Reserve will increase rates by 50 basis points in the meetings scheduled for Tuesday and Wednesday. 

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!   Surging inflation once again is shaking the markets like a rag doll.   On Friday, the U.S. Consumer Price Index clocked an 8.6% increase year-over-year in May. Stock futures sank and bond yields soared. The expectation is the Federal Reserve will increase rates by 50 basis points in its meetings, scheduled for Tuesday and Wednesday.    What does this mean for the originations side?   The average 30-year conforming mortgage rate reached 5.6% Friday, up about 20 basis points over the prior week, per Black Knight's Optimal Blue OBMMI pricing engine. With the spreads getting ridiculous, several LOs told HousingWire Monday that rate locks on the benchmark 30-year fixed were coming in around the 6% mark.    LOs – how has the volatility in the market during the past week or so affected your business? Are your prospective borrowers spooked? Also, based on the recent market shakeup, how much less volume do you expect to originate in 2022?

Please share your thoughts with me at flavia@hwmedia.com.

 

Flávia Furlan Nunes

Mortgage reporter, HousingWire

Wyndham Capital Mortgage plans new round of layoffs

Mortgage

Consumer direct lender Wyndham Capital Mortgage is doing a new round of layoffs in North Carolina, according to a WARN notice.

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Five things to look for when partnering with a third-party review provider

Presented by Selene Finance

Many originators are outsourcing to third-party providers the responsibility of conducting the risk and data analysis. If you're interested in partnering with a provider, here are five things to consider.

Foreign investors play key role in MBS market

Mortgage, Politics & Money

Foreign investors represent an outsized percentage of MBS buyers who could step up to buy additional MBS as the Fed sheds its holdings.

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Doorway Home Loans to merge with Priority Mortgage

Mortgage, IPO/ M&A

Doorway Homes and Priority Mortgage are the latest mortgage lenders to announce a merger amid a challenging mortgage market.

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