MBS down despite home sales boom

By Ryan Bolger
25 Sep 2014

The Commerce Department announced on Wednesday that new home sales hit a six year high in August, but the increase is not thought to have had a material impact on MBS issuance, which continues to drag.

Projected new home sales for 2014 rose to 504,000 from earlier estimates of 427,000, but MBS issuance has declined steadily since the beginning of 2013.

The fact that new homes account for around 10% of all home sales makes the metric highly volatile, according to Brean Capital RMBS ...

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