Date:
June 28, 2010 at 8:45 Eastern
| Benchmark | JUL FN30 4.5 | FN30 CC | FN30 NR | SEP EDF 2.0 BUNDLE | JUL GN30 4.5 |
| Last Close | 103:12 | 3.84% | 4.82% | 98.836 | 103:29 |
| Current Level | 103:15 +3 | 3.82% -2 bps | 4.80% -2 bps | 98.838 +0.2 bps | 103:31 +2 |
Latest Spreads:
| Product | Last | Change |
| FN30 CC Spread | 88 bps | -5 bps |
|
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| MTD -13 |
| FN30 4.5 TOAS | -23 bps | -11 bps |
| C30 Avg GPM | 85 bps | +7 bps |
| Production Index | Day over day | 74.8% |
|
| % of 10 day avg | 91.3% |
| Mand-BE Spread | 32 bps | -5 bps |
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|
|
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| MSR Retain IRR | 12.0% | -3.1% |
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|
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| MSR Index | 91.0% | MTD -9.0% |
House Price Data provided by Radar Logic, Inc.
| RPX MSA | Price per Square Foot | M-T-M* | Q-T-Q* | RPX Implied HPA through 12/31/2010 |
| 25-MSA Composite | $192.85/sqft | +$2.89/sqft | +$6.85/sqft | -0.4% |
Economic News/Activity Today
| Time | Release | Period | B'Berg Survey | Actual | Prior | Revised |
| 8:30 | Chicago Fed Nat Activity Index | MAY | -- | 0.21 | 0.29 | 0.25 |
| 8:30 | Personal Income | MAY | 0.5% | 0.4% | 0.4% | 0.5% |
| 8:30 | Personal Spending | MAY | 0.1% | 0.2% | 0.0% | -- |
| 8:30 | PCE Deflator (YoY) | MAY | 1.8% | 1.9% | 2.0% | -- |
| 8:30 | PCE Core (MoM) | MAY | 0.1% | 0.2% | 0.1% | -- |
| 8:30 | PCE Core (YoY) | MAY | 1.2% | 1.3% | 1.2% | -- |
| 10:30 | Dallas Fed Manf. Activity | JUN | -- | -- | 2.9% | -- |
Market Color
Even though personal income showed a slight downtick in the economic releases this morning, personal spending posted an increase, showing that the consumer may be getting more confident about where the economy is heading. The G-20 agreed to pursue higher capital requirements for banks once economies start to recover fully. Right now, the futures market is pricing in a 76% chance that the Fed keeps rates at .25% through November 3rd, 2010. Currently, the Ten Year yield is at 3.08% (3.15% on Friday) and the 2-10 yield spread is at 243bps, flattening 4bps since Friday morning.
Disclaimer: C30 Avg GPM (Conventional 30-year Average Gross Profit Margin), MSR Index, FN30-NR, BE-MAND Spread and MSR Rich/Cheap represent generic industry measures. Actual results and measures will likely vary by individual originator or servicer.
* Radar Logic Daily™ Price Data represents the previous day's 28-day average price per square foot compared to previous month's (M-T-M) or quarter's (Q-T-Q) 28-day average price. For more information on RPX™ Forward Contracts, Radar Logic Daily™ Price Data on an MSA or ZIP level contact or valuation and/or hedging application of either, please contact Compass at 415 462 7500.
**If you would like to be added to this distribution list or would like an explanation of any of these numbers, please send an email to dbennett@compass-analytics.com**
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