Housing: -May Starts 560,000 (annualized), up 3.5% from April, above 540k expected. -May Permits 612,000 (annualized), up 8.7% from April, most in 2011. -We need about 1,500,000 Housing Starts a year to keep pace with population growth and units scrapped to disaster or obsolescence.

After a four week rally that set new 2011 lows, rates are up slightly on net mortgage bond selling since yesterday. Bond yields (or rates) are now back up to the previous 2011 low level set March 16 after the Japanese earthquake and ‘not-a-war’ in Libya reached peak panic levels.

The nuclear meltdown situation in Japan is no less dire today as helicopters and water cannons are now being used to cool fuel rods and prevent spreading of radioactive material, but after utter market panic yesterday caused stocks and rates to drop, they’ve now reversed course almost entirely (Dow +166, S&P +21, and FNMA 30yr [...]

Rates improved a bit yesterday and gave up ground today, making 30yr fixed rates on loans up to $417k hold at 5%, with higher loan amounts and condo loans about .125% to .25% higher.

The rate climb discussed in recent weeks continues with Conforming 30yr fixed rates .75% higher than all-time lows October 7-8. This means a $184/mo higher mortgage payment for a loan of $417,000, and $323/mo higher for a loan of $729,750. Rates for Jumbo loans above $729,750 are only up .25% because these loans are not [...]

Yesterday’s inflation data helped rates drop about .25% since rising about .375% off lows set ahead of the Fed’s quantitative easing announcement. But today’s much stronger than expected Philly Fed number of 22.5 has caused a sharp 75 basis point mortgage selloff, pushing rates back up about .25%. Philly Fed went from 1 on October [...]

Wells Fargo Bad Loan Repurchases Fell In 3Q Yesterday we learned that Wells Fargo’s repurchase obligations fell in the third quarter. Wells Fargo, who has not stopped foreclosure processes, reduced its reserve for repurchases to $1.3 billion from $1.4 billion in the second quarter, and outstanding buyback requests fell to $3.8 billion of loans from [...]

Don’t forget Sunday is Talk Like A Pirate Day. Here’s another joke to celebrate the occasion and a couple more below. A pirate with an eye patch seemed sad at a bar. The bartender asked, “What’s wrong?” The pirate replied, “Arrrgh, they wanted me to be a teacher – but I only had one pupil!”

Lawmakers Solicit Consumer Comments On 7 Financial & Housing Reform Topics Do you want some input in financial reform? There are many ways to do this, and here is another. The public will have the opportunity to submit written responses to seven questions that will be published in the federal register online at www.regulations.gov. The [...]

In Favor Of Bank Tax Yesterday I noted a few comments by Warren B. about the tax on banks. In an effort to give equal time, many feel that a bank tax is fine. They say that because the government is already giving the banks money at 0% and the banks are buying treasuries and [...]