MBS Day Ahead: New Conforming Loan Limits Coming Into Focus; Bonds Turning a Corner?
Posted To: MBS Commentary
We'll start off with more of an industry-specific curiosity (as opposed to diving right into markets/rates). Then again, the conforming loan limit is a key consideration for rates, and it will be updated in less than a month! Today's FHFA home price data was the 2nd to last month needed to calculate the annual change in home prices (which FHFA relies on to determine new loan limits). But it's not quite as easy as just looking at the headline 8.0% annual growth. Loan limits are based on FHFA's expanded data set that is only released quarterly. Fortunately , that expanded data set tends to fall very close to the Home Price Index headlines. We'll get September's data (and thus the quarterly number) next month. We got August today, and it was very strong. But do you really…(read more)