|10 year government bond yield||0.61%|
|30 year fixed rate mortgage||3.02%|
Stocks are up this morning on stimulus talks in Europe and positive news on a COVID vaccine. Bonds and MBS are up.
Happy half century birthday to Freddie Mac. “As our company celebrates 50 years, we stand on the threshold of a new stage in our evolution as an organization, leading an industry poised for fundamental transformation and playing a critical, stabilizing role during a time of extreme volatility for our country,” said David Brickman, CEO of Freddie Mac.
Economic growth accelerated in June, according to the Chicago Fed National Activity Index. Led by improvements in production- and employment-related indicators, the Chicago Fed National Activity Index (CFNAI) increased to +4.11 in June from +3.50 in May. Three of the four broad categories of indicators used to construct the index made positive contributions in June, and two of the four categories increased from May. The index’s three-month moving average, CFNAI-MA3, moved up to –3.49 in June from –6.36 in May.
FHFA has maintained the same goals for Fannie and Fred in the upcoming year. 24% of mortgages should be from low income borrowers, while 14% of mortgages have to come from low income areas.
Forbearance rates fell to a 2 month low, according to the MBA. 7.8% of mortgages are in forbearance. By source, Fannie and Freddie forbearance numbers are 5.6%, government are 10.3% and non-government guaranteed mortgages were 10.4%. This was the biggest drop in forbearances since they began tracking them.