Wednesday, January 14, 2015 4:45 PM
Good evening,
What a difference a coupon makes!
TEAM, below are two charts which will help explain to borrowers who might be looking at rates at 4.250% or higher who have not seen the rates improve or keep up with the market. The divergence between low and high rates continue as a result of recent developments with FHA and lower interest rates. These two occurrences have ramped up prepayment speeds on servicing rights which are causing 3.5 and lower coupons (left chart) to see greater demand and 4.0 and higher coupons (right chart) to see no demand thus a continuing sell off.
Fed Saw Consumer Spending Rise Amid Concern on Lower Oil Prices
2015-01-14 19:17:47.967 GMT
By Jeff Kearns and Christopher Condon
(Bloomberg) -- A Federal Reserve survey showed most regions saw “modest” or “moderate” economic growth driven by gains in consumer spending, while the energy-rich Dallas district slowed as oil prices plunged.
“Consumer spending increased in most districts, with generally modest year-over-year gains in retail sales,” the Fed said today in its Beige Book, based on reports from its 12 districts gathered on or before Jan. 5. “Auto sales showed moderate to strong growth.”
The report follows Commerce Department data earlier today showing that retail sales slumped in December from the prior month. From a year earlier, sales increased 3.2 percent in December following a 4.7 percent gain in November.
Several districts “expect somewhat faster growth over the coming months,” the Fed report showed. “Payrolls in a variety of sectors expanded moderately” and “significant wage pressures were largely limited to workers with specialized technical skills.”
The Beige Book offers Fed policy makers, who meet Jan.
27-28, anecdotal evidence about the state of the economy as they consider when to raise interest rates for the first time since 2006. Oil prices have plunged by more than half since June.
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