BluefoxToday blog : Is the mortgage industry on the mend?

Is the mortgage industry on the mend?

Maybe it is if the focus is on the mortgage-backed securities market. More specifically on privately-issued mortgage bonds. Just a few months ago there was hardly any market for them at all, and if there were one, the prices of them were on life support.

But now this particular sector is stirring. At least a little bit. Mortgage bonds secured by 30-year fixed-rate prime paper issued in 2006-07 traded for 55 cents on the dollar in March, reports Amherst Securities Group, a dealer and market maker in mortgage-backed securities. That was then, now the same paper is going for almost 80 cents to the dollar. A nice improvement in about three months. It shows that private money is slowly returning to the home loan marketplace, that investors see some stability and viability in it. This should especially help out in the jumbo mortgage segment where private financiers have historically played a major role.

This seems to be just one of the first steps toward a healthier mortgage environment. As long as there is interest toward the market, that's a positive sign, instead of scaring investors to run away from it. The fundamentals, though, are still rather distorted and it'll take many months to right them. But a small encouraging advance here and there is what's needed to get the momentum changed and this appears to be one of those.


Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst - syndicated mortgage, housing and property management blog
My cell: 702-499-1006

Comment balloon 8 commentsEsko Kiuru • June 16 2009 11:14PM


This is a great introspective post. I love that it's positive. I'm feeling really positive about the market myself at the current time.

Posted by Vickie Nagy, Vickie Jean the Palm Springs Condo Queen (Coldwell Banker Residential Real Estate) over 11 years ago

Esko, I hope that the mortgage industry is on the mend!  That would be a good sign for all of us!

Posted by Tony & Darcy Cannon, The C Team (Aubrey and Associates Realty) over 11 years ago

Esko:  Sure hope you're right.  I reblogged your post.  We can all use major good news in the high end.

Posted by Jim Hale, Eugene Oregon's Best Home Search Website (ACTIONAGENTS.NET) over 11 years ago

Esko this is really good goods.  The jumbo market could use some help, right now I can't even offer a 30 year fixed conventional rate on a jumbo loan.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 11 years ago


Little by little we see positive signs pop up.

Posted by Esko Kiuru over 11 years ago

Tony & Darcy,

This seems to be a nice start.

Posted by Esko Kiuru over 11 years ago


Private investors returning to the marketplace is very encouraging.

Posted by Esko Kiuru over 11 years ago


Jumbo segment would be a major benefactor if this continues.

Posted by Esko Kiuru over 11 years ago