The Data and Analytics division of Black Knight Financial Services (NYSE: BKFS) reports the following “first look” at May 2017 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.
– Easing Interest Rates Spur Increase in Prepayment Activity; Delinquencies Pull Back After April’s Increase
– Prepayments (historically a good indicator of refinance activity) jumped 23% month-over-month, reaching their highest point so far in 2017
– Delinquencies reversed course after calendar-driven increase in April, seeing a 7% month-over-month decline
– Inventory of loans either seriously delinquent (90 or more days past due) or in active foreclosure continues to improve, with both hitting 10-year lows in May
– Just 2.12% of Colorado borrowers are past due on mortgage payments, the lowest of any state; Mississippi has the highest non-current rate of any state at 10.16%
US Treasurys edge lower as bond investors look to data, Fed speeches
US government debt prices were lower on Friday, as investors geared up for a slew of data releases and speeches by US Federal Reserve members. The yield on the benchmark 10-year Treasury note sat higher at around 2.15% at 8:28 a.m. ET, while the yield on the 30-year Treasury bond was up at 2.73%. Bond yields move inversely to prices. On the final day of trading for the week, economic data is expected to keep investors busy with manufacturing PMI data and services PMI data due out at 9:45 a.m. ET, followed by the latest new home sales data, out at 10 a.m. ET. On the central bank front, a whole host of speeches are set to take place by Fed officials on Friday. In Nashville, St. Louis Fed President James Bullard is expected to appear at the Illinois Bankers Association’s annual conference, where he is expected to comment upon the US economy and monetary policy. Cleveland Fed President Loretta Mester will be at the 2017 Policy Summit on Housing, Human Capital, and Inequality in Cleveland, where she’s likely to talk about community development.In the meantime, Fed Governor Jerome Powell will be speaking at The Federal Reserve Bank of Chicago Symposium on Central Clearing. When it comes to commodities, oil continues to be a hot topic for investors, as oil prices showed signs of recovery on Friday, with US crude and Brent trading slightly higher in early trade. No auctions are set to take place on Friday.
WSJ – US new-home sales rise in May, prices hit record
– Purchases of new, single-family homes rose 2.9% to a seasonally adjusted annual rate of 610,000 in May
New-home sales rose in May and prices hit a record level, more evidence of strong demand and tight inventories in the housing market. Purchases of new, single-family homes—a narrow slice of all US home sales—rose 2.9% to a seasonally adjusted annual rate of 610,000 in May, the Commerce Department said Friday. Economists surveyed by The Wall Street Journal had expected a sales pace of 590,000. New-home sales have seesawed so far in 2017, reaching a rate of 644,000 in March and then falling in April to 593,000. Over a broader period, the market for new homes appears to be picking up. From a year earlier, new-home sales rose 8.9% in May and so far this year have climbed 12.2%. At the current sales pace, there was a 5.3 months’ supply of new homes on the market in May. The median sale price for a new home sold in May was $345,800, the highest recorded for data dating back to 1963. The average sale price also came in the highest at $406,400. Earlier this week, the National Association of Realtors reported sales of existing homes, which compose the bulk of the market, rose 1.1% in May to a seasonally adjusted annual rate of 5.62 million.
SpaceX aims for rarefied air with upcoming launches
– SpaceX will launch two different Falcon 9 rockets, on Friday and Sunday.
– Elon Musk’s company would be the first to both launch and land two rockets in 48 hours.
– United Launch Alliance successfully launched two rockets in two days in March 2008.
With its pair of launches on Friday and Sunday, SpaceX hopes to demonstrate its rocket services can be a cost-effective, rapid-turnaround means of reaching the final frontier. No private company has successfully launched two rockets in a 48-hour time frame since United Launch Alliance did so in March 2008 — and SpaceX aims to both land its rockets and reuse them later. A joint venture of Lockheed Martin and Boeing and a major competitor to SpaceX, United Launch Alliance’s CEO Tony Bruno wished SpaceX well, writing on Twitter, “Good Luck & congrats upon success. Having routinely achieved high launch rates, I know that tempo is anything but routine.” The first launch by Elon Musk’s company will occur at Kennedy Space Center in Florida during a two hour window beginning at 2:10 p.m. ET. The BulgariaSat-1 Mission will deliver a commercial communications satellite to orbit aboard SpaceX’s Falcon 9 rocket. The first stage of this specific rocket was used previously this year, in a launch from Vandenberg Air Force Base in January. After separating with its payload, the Falcon 9’s first stage will attempt to land upright on a mobile droneship stationed in the Atlantic Ocean. Two days later, SpaceX will launch a separate Falcon 9 rocket from California’s Vandenberg Air Force Base, this time with a payload of 10 Iridium NEXT satellites. Scheduled for 4:25 p.m. ET Sunday, this mission will continue to fulfill SpaceX’s contract to deliver 75 Iridium satellites into low-Earth orbit by mid-2018. The Falcon 9’s first stage is then intended to land on another SpaceX autonomous droneship, this time located in the Pacific Ocean. In 2008, on March 13 and March 15, United Launch Alliance succeeded in blasting off one of each of its Atlas V and Delta II rockets. However, both launch vehicles were expendable systems, and were not reused.
MBA forecasts commercial/multifamily mortgage originations to decline in 2017
The Mortgage Bankers Association (MBA) projects commercial and multifamily mortgage originations will be down slightly in 2017, ending the year at $478 billion, a decrease of 3% from the 2016 volumes. Mortgage banker originations of just multifamily mortgages are forecast at $206 billion in 2017, with total multifamily lending at $245 billion. “Commercial and multifamily market activity has downshifted at the start of 2017,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Markets continue to move forward, but the rapid increases in property values, transaction volumes and other fundamentals that characterized the post-recession period have given way to more regular changes tied to the economy as well as changes in supply and demand. For many parts of the market, the downshift is a positive development.” Commercial/multifamily mortgage debt outstanding is expected to continue to grow in 2017, ending the year roughly two% higher than at the end of 2016.