Morning Color
Date:
July 26, 2010 at 8:45 Eastern| Benchmark | AUG FN30 4.0 | FN30 CC | FN30 NR | SEP EDF 2.0 BUNDLE | AUG GN30 4.0 |
| Last Close | 101:24 | 3.66% | 4.66% | 99.124 | 102:12 |
| Current Level | 101:25 +1 | 3.65% -1 bp | 4.65% -1 bp | 99.093 -3.1 bps | 102:14 +2 |
Latest Spreads:
| Product | Last | Change |
| FN30 CC Spread | 87 bps | -2 bps |
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| MTD -10 |
| FN30 4.5 TOAS | -47 bps | +5 bps |
| C30 Avg GPM | 87 bps | -2 bps |
| Production Index | Day over day | 76.8% |
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| % of 10 day avg | 84.2% |
| Mand-BE Spread | 50 bps | -5 bps |
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| MSR Retain IRR | 16.4% | -12.7% |
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| MSR Index | 99.0% | MTD -1.0% |
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 | $195.83/sqft | +$2.98/sqft | +$9.11/sqft | -2.0% |
Economic News/Activity Today
| Time | Release | Period | B'Berg Survey | Actual | Prior | Revised |
| 8:30 | Chicago Fed Nat Activity Index | JUN | -- | -0.63 | 0.21 | 0.31 |
| 10:00 | New Home Sales | JUN | 320K | -- | 300K | -- |
| 10:00 | New Home Sales MoM | JUN | 6.7% | -- | -32.7% | -- |
| 10:30 | Dallas Fed Manf. Activity | JUL | -- | -- | -4.0% | -- |
Market Color
New home sales are due out later this morning and are projected to print near record lows. Several economists have revised their 3-5 year global growth forecasts downward from around 4.75%-5% to the 3%-3.25% range, dragging equities futures lower in early trading, while bonds are mixed. Right now, the futures market is pricing in an 85% chance that the Fed keeps rates at .25% through November 3rd, 2010. Currently, the Ten Year yield is at 2.99% (2.99% on Friday) and the 2-10 yield spread is at 239bps, flattening 2bps since yesterday 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**
Compass Analytics | 580 California Street, Suite 1725 | San Francisco, CA 94104 | 415-462-7500
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