In 2008 Mortgage Industry largely caused the crisis that led to the Great Recession, in 2020 it's a mere innocent bystander that is getting beat. All kinds of asset markets (Mortgage Bonds, Treasurys, Stocks, even Oil, and Commodities) are in an unprecedented, unchartered territory where the traders have no clue what to do with them. Let's look at some numbers just in the last two weeks: VIX, which measures the volatility in the stock markets, rose from 13 to 75 (100 being the most volatile) The S&P 500 has dropped ~25% Oil prices…
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Breaking Down the Fed Announcement and its Impact on Mortgage Rates
Federal Reserve cuts rates to zero and launches a massive $700 billion quantitative easing program The Fed on Sunday said it will begin buying $200 billion of mortgage-backed bonds, a move that will stabilize and likely lower mortgage rates, which moved sharply higher last week. Fed also lowered the Funds rate to zero. So, when can you see a 0% rate on the mortgage statement? Probably - never. And that is because the Fed Funds rate has pretty much nothing to do with mortgage rates. This blog that I published last week goes…
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Mortgage Rates Jump 0.25% even as Fed cuts Rates and Treasurys Tumble
Mortgage rates went from ridiculously low to not-so-bad in just over a week. Everything that the media thinks should have happened to keep it at the ridiculously low level did happen. Fed cut rates by half a percent. Treasurys tumbled to levels never seen before and the stock market crashed to a point where the Dow officially entered the bear market, ending the 11-year run in the bull market territory. Given all this, mortgage rates should have fallen more. Instead, it climbed 0.25% in the last couple of days. What happened here? Let's…
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Mortgage Rate Recap and Outlook for the Week Ending February 21, 2020
The speed of residential construction has shot up over the past few months and is well in line to reach its best figures in over a decade. For a market that has been short on inventory for some time now, this is great news, especially with the spring season already calling on us. Mortgage Rates: rates increase all around This week’s Mortgage Banking Associations’ (MBA) weekly rate survey reveals an increase across the board. According to the MBA Weekly Survey: “The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) increased to 3.77 percent…
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Mortgage Rate Recap and Outlook for the Week Ending January 31, 2020
The mortgage market had reacted favorably to the Coronavirus threat. Now that the trend is reversing, we may see a partial correction in the mortgage market. It is nothing new. Global threats that loom suddenly bring about economic movements with it and just as soon as the threats disappear, the money movement returns to its initial levels. The refinancing activity and demand for homes are on a move in the meantime, buoyed by near-record interest rate levels. Mortgage Rates: rates decrease all around This week’s Mortgage Banking Associations’ (MBA) weekly rate survey reveals a decrease across the board.…
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The FICO 10 Suite: Will It Make Borrowing More Difficult?
Triggered by very high consumer-debt levels, markets went into a tailspin in 2008. Back then, the debt figure was $13 trillion. Status Alert: the same figure is $14 trillion now. Fair to say, the lenders are getting a little fidgety. It is true that the demons of recession aren’t giving them nightmares yet but the lending fraternity knows that the phase of expansion can’t last eternally and that the USA might feel the pinch someday if generous (and fingers-crossed kind of) lending continues. FICO Score 10 Suite It is in this context that…
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Mortgage Rate Recap and Outlook for the Week Ending January 24, 2020
Consumer sentiment may rally from here based on multiple positive indices, near all-time-low rates, and the general good feeling that a new year brings. House constructions as well as number of homes sold are expected to pick up. While Americans are aware that the expansionary phase can't last eternally, they are no more wary of the recession pundits and this is no small news. Mortgage Rates: rates decrease all around This week’s Mortgage Banking Associations’ (MBA) weekly rate survey reveals a decrease across the board with the exception of 30-year Fixed jumbo balances. According to the MBA Weekly Survey: “The…
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Mortgage Rate Recap and Outlook for the Week Ending January 17, 2020
Phase One of the Trade deal isn't expected to deliver a panacea. It, however, augurs well for the economy under pressure as the positive spin to the Trade War, augmented by stable inflation and decent job growth, is likely to keep nerves in check. January is a calm month. Everyone is willing to be in the first gear till the time all the numbers of the last year pour in. The excitement, though, may begin soon as many indicators, otherwise unnoticeable, may have a distinct shine given that this is the election year.…
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Mortgage Rate Recap and Outlook for the Week Ending January 10, 2020
A nation’s economy is affected by even the faintest geopolitical unrest but the fact that Trump has addressed any concerns regarding the Iranian fallout stabilizes our perception of the economy. So rates are not going on a tailspin, rest assured! The employment report for the private sector in particular may push the rates up and even the lenders can keep them high (artificially) in order to reduce the application stress. Mortgage Rates: rates decrease all around This week’s Mortgage Banking Associations’ (MBA) weekly rate survey reveals a decrease across the board. According to the MBA Weekly Survey: “The average contract…
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2020 FHA Mortgage Loan Limits for all the Counties in Colorado (CO)
ADAMS 1 Unit – $575,000 2 Unit – $736,100 3 Unit – $889,800 4 Unit – $1,105,800 ALAMOSA 1 Unit – $331,760 2 Unit – $424,800 3 Unit – $513,450 4 Unit – $638,100 ARAPAHOE 1 Unit – $575,000 2 Unit – $736,100 3 Unit – $889,800 4 Unit – $1,105,800 ARCHULETA 1 Unit – $331,760 2 Unit – $424,800 3 Unit – $513,450 4 Unit – $638,100 BACA 1 Unit – $331,760 2 Unit – $424,800 3 Unit – $513,450 4 Unit – $638,100 BENT 1 Unit – $331,760 2 Unit –…
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