Fed Officials Surprise Investors

Jan 23 2017

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Comments from Fed officials and stronger than expected economic data were negative for mortgage rates this week. Renewed concerns about the United Kingdom's exit from the European Union offset a little of the increase, but mortgage rates ended the week higher.

Brexit is back in the news. On Tuesday, British Prime Minister Theresa May spoke about the UK's objectives in its negotiations for the United Kingdom to exit the European Union. According to May, the UK will not attempt to remain in the single market of the EU because it would require allowing the free movement of workers between the UK and the rest of the EU. Instead, the UK will negotiate trade agreements with the EU and other countries. It is difficult at this time to predict the effect Brexit will have on the economies in Europe. The uncertainty about the outlook for growth caused investors to shift to safer assets, including U.S. mortgage-backed securities. This added demand was good for mortgage rates.

On Wednesday, however, the Fed's Kaplan expressed support for tighter monetary policy due to progress in meeting the Fed's labor market and inflation goals. Of note for mortgage rates, he thinks that the Fed should soon begin to consider a reduction in the Fed's large holdings of MBS and Treasuries. The prospect that this change may take place sooner than expected was negative for mortgage rates. Later that day, Fed Chair Yellen said that most Fed officials expect to raise the federal funds rate gradually until it reaches 3.00% by the end of 2019. This was a faster pace than many investors had expected, and Yellen's comments also pushed mortgage rates higher.

MortgageNews_1-23.pngHousing data released this week revealed that the housing market ended 2016 on a positive note. In December, housing starts rose 11% from November, well above the expected levels. For the year, housing starts were 5% higher than in 2015, making it the best year since 2007. 

Looking ahead, additional information about policy changes under the Trump administration could continue to affect mortgage rates. Existing Home Sales will be released on Tuesday and New Home Sales will come out on Thursday. The first reading for fourth quarter GDP, the broadest measure of economic growth, will be released on Friday. Durable Orders, another important indicator of economic activity, also will come out on Friday. 

Topics: The Money Source, mortgage news

Experience EASY

Oct 04 2016

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At The Money Source, we like to make things easy for our clients, which includes our state-of-the-art mortgage platform called EASY. 

Our innovative, web-based EASY loan portal is user-friendly and designed for YOUR work flow. 

EASY delivers the features you need with the simplicity you want including:

  • Price, lock and deliver your loan in one system
  • Real-time status and conditions
  • Customized notifications based your needs
  • Easily create and manage users
  • Peer comparison

By partnering with The Money Source, you'll also benefit from a dedicated and experienced team, a large offering of products and the tools you need to grow your business. Click here to Become a Partner today!

Topics: Correspondent partner, The Money Source, Correspondent Mortgage, Pink Unicorn, correspondent loan team, mortgage platform, EASY, loan portal

The Money Source - A Great Place to Work

Sep 09 2016

The Results Are In - We Couldn't Be Happier!

GreattPlaceToWork2016_TMS_v2.jpgWe are pleased to announce that The Money Source was recently certified as a great workplace by the independent analysts at Great Place to Work®. We earned this credential based on extensive ratings provided by our TEAMS in anonymous surveys.

Categories we were rated on include:

  • Great Atmosphere
  • Great Rewards
  • Great Pride
  • Great Bosses

We are driven by our Core Values and our commitment to our people is something we take very seriously. We are very thankful to all who shared their thoughts about working here. Interested to see what else they had to say? Check out the results details in the link below! 

Great Place To Work Results

Want to join our team?

Send your resume to resume@themoneysource.com to learn more about openings at our company. 

Topics: Team, The Money Source, Core Values, Great Place to Work

Meet the TMS Team - Chris Warner

Sep 01 2016

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At The Money Source, our Team strives to provide Rock Solid Service every day. The people who make up our team are the key to our success. Meet one of the members who makes up our Default Servicing team - Chris Warner

Chris is the Senior Director of Default Servicing at The Money Source and has been a part of the team since September 2015. He started in financial services in 1976 in the consumer finance business and in 1997 he went to work for Conti Mortgage and he’s been in mortgage servicing since then.

Chris works in our Arizona office and during his free time he enjoys reading and going to the gym.

The best thing about working at TMS for Chris is working for our EVP of Servicing Rick Smith again. He also loves the atmosphere and the energy.

More facts about Chris:

  • Favorite Food: Italian food - spaghetti and meatballs is his favorite
  • Fun fact: He lived near Philly for a while and loves Philly sports. He got to tour Citizens Bank Park, meet Philly Phanatic and sit in the dugout!
  • Dream: Travel to Europe and visit Germany during Oktoberfest

Thanks to Chris for sharing a little about himself. 

Topics: The Money Source Servicing, The Money Source, Chris Warner, Arizona, default servicing

Retail Sales Stall

Aug 12 2016

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The most significant economic report released over the past week, retail sales, fell far short of expectations, which was good for mortgage rates. A decline in bond yields overseas also helped, and mortgage rates ended the week lower. 

After several months of strong readings, Friday's retail sales data fell far short of expectations. Excluding the volatile auto component, retail sales in July fell 0.3% from June, below the consensus for an increase of 0.2%. Auto sales rose a strong 1.1% in July, and total retail sales in July were flat from June, but again this was far below the consensus for an increase of 0.4%. .

Consumer spending accounts for about 70% of economic output in the U.S., and the retail sales data is a key indicator. Consumer spending during the second quarter was one of the bright spots for the economy. Since the data can be volatile from month to month, investors will be closely watching to see if the July results reflected just a temporary pause or the start of a longer period of weaker spending. Slower economic growth reduces the outlook for future inflation, so the retail sales data was positive for mortgage rates.

Over the past week, bond yields overseas declined. When this happens, it makes the yields on U.S. bonds relatively more attractive to global investors, driving up the demand. This in turn causes the price of U.S. bonds to rise and yields to fall. The strong demand was seen at the Treasury auctions which took place this week. Mortgage-backed securities (MBS) prices also rose, causing mortgage rates to move lower. 

Looking ahead, the Consumer Price Index (CPI), a widely followed monthly inflation report, will come out on Tuesday. CPI looks at the price change for goods and services which are sold to consumers. Housing Starts also will come out on Tuesday. The minutes from the July 24 Fed meeting will come out on Wednesday. These detailed minutes provide additional insight into the debate between Fed officials and have the potential to significantly move markets. 

All material Copyright © Ress No. 1, LTD (DBA MBSQuoteline)

Topics: The Money Source, mortgage news, consumer price index, mortgage rates, consumer spending

Meet the TMS Team - Gloria Mascola

Aug 09 2016

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At The Money Source, our Team strives to provide Rock Solid Service every day. The people who make up our team are the key to our success. Meet one of the members who makes up our Customer Service team - Gloria Mascola. 

Gloria Mascola is a Customer Care Manager at The Money Source and has been a part of the team since February 2016. For 20 years, she worked for Anthem Inc. as a Customer Service Representative and worked her way up to Call Center Manager. She was presented with the opportunity to join TMS and she’s been happy here ever since.

Gloria works in our Meriden, CT office and she loves to spend vacation in Narragansett, Rhode Island with her family every summer. She is also an avid volunteer of Relay for Life. Even though cancer hasn’t affected her personally, she has friends that have battled.

Gloria’s favorite part about working at TMS is the environment because it feels like she’s working with family. When she started she was welcomed with open arms and everyone was so nice. She loves that TMS really cares about its employees.

More facts about Gloria:

  • Dream of hers: To see her sons through college and make sure they have a bright future
  • Favorite food: Seafood, especially shrimp
  • Favorite TV Show: The Walking Dead, 48 HRS

Thanks to Gloria for sharing a little about herself!

Topics: People Matter, Meet the Team, The Money Source, Meet the TMS Team, Customer Service, Meriden, CT, Gloria Mascola

Job Gains Surge

Aug 05 2016

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Over the past week, two highly anticipated economic events caused significant, but offsetting, reactions for mortgage rates. The negative impact of Friday's strong Employment report was greater than the positive effect of Thursday's Bank of England announcement, and mortgage rates ended the week a little higher. 

Mortgage rates increased following the release of Friday's upside surprise in the important monthly Employment report. Against a consensus forecast of 180K, the economy added 255K jobs in July. In addition, upward revisions added 18K jobs to the results for prior months. The unemployment rate remained at 4.9%, above the consensus of 4.8%, as more people entered the workforce. 

Average hourly earnings, an indicator of wage growth, exceeded expectations, and they were 2.6% higher than a year ago. Stronger job and wage gains are negative for mortgage rates, since they increase the outlook for future inflation.

On Thursday, the Bank of England (BOE) announced a 25 basis point rate cut and a new bond purchase program to stimulate economic activity. Investors had expected the rate cut, but the additional bond purchases were a surprise to some. In the statement, the BOE said that the outlook for economic growth had "weakened materially" following the Brexit vote on June 23. The added demand for bonds from the BOE helped push global bond prices higher and yields lower, including U.S. mortgage rates. 

Looking ahead, second quarter Productivity will be released on Tuesday. The JOLTS report, which measures job openings and labor turnover rates, will come out on Wednesday. The most significant report of the week, Retail Sales, will be released on Friday. Consumer spending accounts for about 70% of economic output in the U.S., and the retail sales data is a key indicator. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. 

All material Copyright © Ress No. 1, LTD (DBA MBSQuoteline)

Topics: The Money Source, mortgage news, mortgage rates, retail sales, bond purchase program, employement report

Meet the TMS Team - Alan Hershkowitz

Jul 27 2016

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At The Money Source, our Team strives to provide Rock Solid Service every day. The people who make up our team are the key to our success. Meet one of the members who makes up our Legal team - Alan Hershkowitz.

Alan is a Legal Reviewer at The Money Source and has been a part of the team since May 2016. After attending SUNY Stony Brook, he went on to earn his Juris Doctor at Western New England University School of Law. He's worked in the legal department of a court services company and focused primarily on foreclosures.

Alan was born in Stony Brook, NY and still lives there. He's the oldest of three children and has two younger sisters. When he has free time, Alan likes to play sports and go out with his friends.

The best thing about working at The Money Source, is that he gets to work with fun and outgoing people.

More facts about Alan:

  • Favorite TV Show: Sons of Anarchy
  • Favorite Food: Seafood
  • Dream: To come up with the next "billion dollar app" and never work another day in his life
  • Fun fact: He was once in the same elevator as Rosie O'Donnell

Thanks to Alan for sharing a little about himself!

Topics: People Matter, The Money Source, Core Values, Alan Hershkowitz, Meet the EA Team, legal review

ECB Holds Steady

Jul 22 2016

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Thursday's European Central Bank (ECB) meeting was viewed as negative for U.S. mortgage rates. The economic data released this week had little impact. As a result, mortgage rates ended the week a little higher.

Some investors were disappointed by Thursday's decision by the ECB to make no change in monetary policy. To help ease the impact of the June 23 Brexit vote, some wanted to see the ECB provide additional stimulus. Looser monetary policy from global central banks with bond purchase programs has been viewed as positive for mortgage rates in recent years. The reaction on Thursday morning to the lack of additional stimulus was an increase in mortgage rates. Comments from ECB officials left the door open for looser policy at the next meeting in September, however, and the impact of this meeting was small.

June was another good month for the housing market. Sales of existing homes rose in June for the fourth month in a row to an annualized rate of 5.6 million units, which was the best level since February 2007. This was achieved despite a very low supply of homes available for sale. There was just a 4.6-month supply in June. A healthy balance between buyers and sellers is considered to be a little over a 6.0-month supply.

Home builders are certainly aware of the lack of supply as they have ramped up construction. The Commerce Department reported that there were more houses under construction at the end of June than at any time in the last eight years.

Looking ahead, the next U.S. Fed meeting will take place on July 27. No change in rates is expected, but the statement from the Fed could have a significant impact on mortgage rates. Before the Fed meeting, the new home sales data will come out on Tuesday. The pending homes sales data and the report on durable orders will be released on Wednesday. The first reading for second quarter Gross Domestic Product (GDP), the broadest measure of economic growth, will come out on Friday. 

All material Copyright © Ress No. 1, LTD (DBA MBSQuoteline)

Topics: The Money Source, economic data, US Mortgage Rates, bond purchase program

Stocks Rally, Rates Rise

Jul 15 2016

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Investors showed a preference for stocks over bonds this week. The economic data had little impact. As a result, mortgage rates ended the week a little higher.

With long-term bond yields at or near record low levels following the Brexit vote on June 23, investors decided this week that stocks had become relatively more attractive than bonds. Investors shifted assets from bonds to stocks, pushing the Dow to a record high, and mortgage-backed securities (MBS) prices lower. Since mortgage rates are set based on MBS prices, rates moved higher. Mortgage rates still remain significantly lower than they were before the Brexit vote.

The recent increase in mortgage rates has occurred despite little change in the outlook of investors for future Fed policy. Numerous Fed officials made speeches over the past week, and the central theme was that federal funds rate hikes will take place at a very gradual pace. In futures markets, investors have priced in less than a fifty percent chance of a rate hike during the remainder of 2016.

After a slow start to the year, retail sales posted a fourth straight month of solid gains on Friday. Retail sales excluding the volatile auto component surpassed expectations with an increase of 0.7% in June. Consumer spending accounts for about 70% of economic output in the U.S., and the retail sales data is a key indicator. 

Partly due to the pickup in consumer spending, second quarter Gross Domestic Product (GDP), the broadest measure of economic growth, is expected to more than double the 1.1% level seen during the first quarter. 

Looking ahead, most of next week's economic data will come from the housing sector. The NAHB housing confidence index will come out on Monday. Housing Starts will be released on Tuesday. Existing Home Sales and the Philly Fed regional manufacturing index will come out on Thursday. In addition, there will be a European Central Bank (ECB) meeting on Thursday which could influence U.S. mortgage rates. 

Topics: The Money Source, mortgage news, economic data, federal funds rate

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