FRB

Browse articles from all of our Newsletters related to FRB.

April 21, 2017 - Inside MBS & ABS

MBS Trading Volume Inched Up in March; New Bond Creation Could Increase … All Eyes Are on the Fed

The average daily trading volume in agency MBS reached $207.8 billion in March, a mere 2.66 percent gain compared to the month prior and a sign that investors are in a holding pattern these days, trying to decipher both the stock market and geopolitical events. According to figures compiled by the Securities Industry and Financial Markets Association, average daily trading volume jumped 9.7 percent compared to the same month a year ago. In January 2017, $229.8 billion in product changed hands daily. Meanwhile, a recent decline in rates means...


April 7, 2017 - Inside MBS & ABS

Fed Starts to Plan for Shrinking its Huge Portfolio After Inflation Breaches Key 2 Percent Threshold

For years, officials at the Federal Reserve seemed nonchalant about coming up with a final exit strategy for the U.S. central bank’s massive holdings of agency MBS and debt and Treasury Securities, currently valued at approximately $4.5 trillion. But now, in relatively short order, the prospect of the Fed beginning to reduce its holdings has become a “thing” – so much so, in fact, that officials there reportedly are starting to put together just such a plan. The likelihood of such a move suddenly got much stronger when the Commerce Department announced late last week that the personal-consumption expenditures price index rose 2.1 percent from a year ago. The Fed has been striving to achieve 2 percent inflation for at least the last five years, and now appears to have the green light it has been waiting for. According to various press reports, the Fed’s plan would entail...


March 31, 2017 - Inside MBS & ABS

Audit Finds Little Change in Fed MBS Reinvestments, But Huge Net Interest Gain Helped Boost Remittances

There was little change in the amount of agency MBS held by the Federal Reserve in 2016 compared to the previous year, although the account generated a whopping $46.3 billion in net interest income last year. The 2016 net interest gains from Fannie Mae, Freddie Mac and Ginnie Mae MBS were down slightly from 2015, when the Fed reported $49.0 billion, according to an independent annual audit of the Fed. Conducted by KPMG, the audit estimated...


March 23, 2017 - Inside Mortgage Finance

Home-Equity Market Continued to Fizzle in Late 2016, HEL Debt Sinks to 13-Year Low

New originations of home-equity loans were up 8.0 percent in 2016 from the previous year, but the market peaked early and ended with consecutive quarterly declines in production, according to a new Inside Mortgage Finance ranking and analysis. Lenders originated an estimated $197.6 billion of home-equity lines of credit and closed-end second mortgages last year. It was the strongest output since 2008, but it was not enough to offset the years-long erosion of second-mortgage debt. At the end of 2016, the supply of outstanding home-equity loans fell...[Includes three data tables]


March 17, 2017 - Inside MBS & ABS

Federal Reserve Chooses to Raise Fed Funds Rate, Defers Talk About Its Huge Agency Portfolio

For the third time in as many years, the U.S. Federal Reserve decided to raise the federal funds rate by 25 basis points this week, as widely expected – only this time, the Fed didn’t wait until the very end of the year. The FOMC’s revised projections are for two additional quarter-point rate hikes later this year, three next year and three or four the year after. World stock indexes rallied...


March 17, 2017 - Inside MBS & ABS

Banks Help Pick Up Some of the Slack as Overseas Investors, GSEs Shed MBS Holdings in Late 2016

Thanks to strong growth in the agency market, the supply of single-family MBS outstanding continued to grow over the final three months of 2016, a new Inside MBS & ABS analysis reveals. Agency MBS outstanding pushed to a new record, $6.034 trillion, as of the end of last year. The biggest gainer continued to be Ginnie Mae, which reported a 2.2 percent increase in the fourth quarter and a 7.7 percent gain for the year. Freddie Mac matched Ginnie’s fourth-quarter increase, but its year-to-date gain was smaller, 4.2 percent. Fannie Mae had...[Includes two data tables]


March 16, 2017 - Inside Mortgage Finance

Commercial Banks Continue Servicing Pullback, Thrifts and Credit Unions Pick Up Some Slack

The volume of home mortgages outstanding continued to grow during the final three months of 2016, no thanks to the commercial banking industry. Recently released data from the Federal Reserve show $10.266 trillion of mortgage debt outstanding at the end of last year. That was up 0.7 percent for the quarter and reflected a 2.3 percent gain for the full year. The market still has a long way to go to catch up to the $11.240 trillion of mortgage debt outstanding at the end of 2007, but growth has been steady since bottoming out in mid-2014. The agency market continued...[Includes two data tables]


Poll

With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher

48%

50% to 74%

24%

30% to 49%

14%

Under 30%

14%