May 16, 2019

NDM News

It’s no secret that Nations Direct has some of the best conventional pricing in the industry on our Premier Conventional product.  And with our 0.25 FHA special we have looked really strong on FHA loans above 680 FICO for quite some time now.

What might be a surprise is that we are even a price leader below 640 on FHA and VA loans.  Our rates on sub 640 FICOs is one of the most aggressive rates in the industry.

Market News

Stocks opened higher Today as Walmart and Cisco posted stronger than expected earnings reports. Yesterday, President Trump signed an executive order allowing the U.S. to ban telecommunications network equipment, a move designed to target Chinese technology companies Huawei and ZTE. Additionally, the Trump administration postponed their decision to impose tariffs on autos, creating a small market rally in the U.S. and Europe.

Bond prices are slightly down, and the 10-year treasury is yielding 2.39%. The 10-year yield reached 2.35% recently, coming close to its lowest level since December 2017. There is a huge push for treasuries right now. Heightened trade tensions and weak data in China and the U.S. has magnified the fragility of the global economy. Everyone wants safe haven assets amid global concerns, resulting in the slide of yields.

U.S. new home construction rose for a second month and beat estimates. This indicates a positive momentum swing for the housing sector to start the second quarter. Residential starts increased by 5.7% and permits for future construction rose 0.6%. Despite lower mortgage rates and the Federal Reserve’s patience on borrowing costs, the outlook for the sector is much brighter than before.

 

Josh Pappert – VP, Capital Markets
Nations Direct Mortgage