Mortgage News Oct. 21, 2015

Andy Simon | October 21st, 2015

by Ben Bauer

Mortgage Bond prices are modestly higher this morning after losing some ground in yesterday's session. 

There is no economic data to influence trading, while geo-political headlines are also absent. 

S&P futures are higher as General Motors beat earnings estimates by a wide margin, Boeing upped its full-year outlook after an earnings beat, while the bullish tone is shrugging off an earnings miss by Coca-Cola.

The big Mortgage Bankers Association (MBA) conference just wrapped up in San Diego with some interesting forecasts for originations. The MBA released its forecast for 2016 originations saying it sees a 10% increase in purchase originations in 2016 compared to 2015 to $905 billion.  However, refinance originations are expected to decrease by one-third to $405 billion.  On net, mortgage originations will decrease to $1.32 trillion in 2016 from $1.45 trillion this year. 

The MBA went on to say that it expects jobs to increase in 2016, GDP to be 2.3%, while interest rates will rise next year, but will remain below 5% for 30-year mortgage rates.

Mortgage Bond prices continue to trade sideways and have been trapped in this pattern since the beginning of October, unable to break above current levels.