Monthly Market Commentary

ECONOMIC UPDATE 2020 has been a very difficult year on many fronts, and the economic outlook for Q4 is less certain with Congress unable to agree on additional fiscal aidDespite the uncertainty, the economic data trend, as a whole, continues to exceed expectations,...

ECONOMIC UPDATE August was atypically busy for broad financial marketsFed Chair Jerome Powell unveiled a new monetary policy framework during his annual Jackson Hole address, including a shift to average inflation targetingDespite various distractions in recent weeks,...

ECONOMIC UPDATE The path of COVID-19 remains the predominant driver of economic outlooks, and July was not a positive month on that frontQ2 GDP was expectedly bad on a historic level, but Q3 began with positive momentum on multiple fronts, but continued progress will...

ECONOMIC UPDATE Broad market functionality is much improved despite the uncertain economic outlook, thanks in large part to the actions of monetary and fiscal policymakersEconomic forecasting is as challenging as ever, and the Citigroup Economic Surprise Index posted...

ECONOMIC UPDATE Despite depression-like unemployment statistics, financial markets have rebounded strongly from the March lowsFed policies are having an extraordinary impact on market functionality, but Fed Chair Powell recently called for more fiscal aid to avert a...

ECONOMIC UPDATE With much of the global economy on lockdown, unemployment has surged and output has slowed dramaticallySome states are beginning to re-open parts of the economy, but a recent ABC News/Ipsos poll suggests consumers remain hesitant to resume certain...

Using TBA MBS as Hedging Alternative to Agencies Could Potentially Save Your Institution Millions Understanding and tracking hedge cost is critical in any mortgage pipeline hedging process. When forward committing loans to investors, there is an implied hedge cost...

ECONOMIC UPDATE Financial markets experienced extraordinary volatility in March as the COVID-19 pandemic worsenedA self-imposed social lockdown is sending shockwaves across the global economy, but policymakers have responded with substantial monetary and fiscal...

Recent events have prompted significant volatility in the mortgage market. The 10-year U.S. Treasury rate (10UST) dropped to all-time lows below 1% and significant selling was seen in risk markets. Multi-point swings in pricing have occurred over very short periods of...

ECONOMIC UPDATE Coronavirus fears paralyzed risk markets in the final week of FebruaryMarkets are now pricing for Fed rate cuts in March and April and an emergency rate cut of 50 bps was announced on March 3Fed Chair Powell issued a short statement on February 28...