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How Greece and China Woes Will Affect Your Mortgage Rates?

Have you ever wondered how the number is derived that makes up your mortgage rate? Why is your mortgage rate 4.5%? 5.25%? 3%? Mortgage rates are born from bonds and the mortgage-backed securities (MBS) markets. Similar to corporate bonds and the stock market, mortgage-backed bonds trade actively every day. Pricing changes constantly. Rates change constantly. Your mortgage rate is a moving target until you lock it. Feeling lucky? Get A Live Mortgage Rate Quote Mortgage Backed Securities Market Movers So, if the mortgage backed securities market is actively traded, what moves the market?…continue reading →

First Time Home Buyers Heat Up Summer Buying Season

Homes are selling like its 2006 all over again. Contracts to buy home reaches 9-months high. Where the economic tides go so goes the the housing market typically. That is why continued strength in the US economy has led to continued strength in the housing market recently, especially with first-time homebuyers. The National Association of Realtors® (NAR) reported recently in their monthly numbers  that sales of existing homes in May were at the highest rate in nearly six years and April sales, originally reported down by more than 3 percent, weren't hit as…continue reading →

Mortgage Rates Continue To Climb – Now At Highest Level Since Oct, 2014

Mortgage backed securities (MBS) suffered one of the worst weeks in recent times. As a result, mortgage rates continued to climb higher. After the recent MBS sell off, rates are now at the highest level since October, 2014. However, they are still ~.0.25% lower than at the same time last year. MBS is a type of bond traded on Wall Street. It's daily yield impacts the mortgage rates. Just this past week, MBS lost a whopping 160 bps pushing the 30 Year Fixed rates over 4% for most borrowers. A quick look at…continue reading →

April Housing Data Show Robust Price Increase, Shorter Selling Time

Total existing-home sales, which are completed transactions that include single–family homes, townhomes, condominiums and co–ops, declined 3.3 percent to a seasonally adjusted annual rate of 5.04 million in April from an upwardly revised 5.21 million in March. Despite the monthly decline, sales have increased year–over–year for seven consecutive months and are still 6.1 percent above a year ago. The problem does not appear to be a sign of housing market weakness however. Lawrence Yun, NAR chief economist, says sales in April failed to keep pace with the robust gain seen in March. "April's…continue reading →

Mortgage Rates Jump Sharply – Reach Highest Level In 6 Weeks

Mortgage Rates climbed swiftly this week, reaching the highest point since March 17th, 2015. Mortgage rates are directly impacted by the trading of mortgage bonds on Wall Street. This week there has been rapid and deep movement to Bond Markets both in the US and Europe - like shaking a bottle of Coke before opening it. See the chart below for how mortgage bonds (Called Mortgage Backed Securities or MBS in short) have been doing for last week or so. A Red stick means MBS declined in price that day and a green…continue reading →

8 Blunders That Will Absolutely Spoil Your Mortgage Approval

  A lot of unhappy faces project through the conference call. Would-be homebuyers, real estate agents, title & escrow and a mortgage team - they all invested something. Whether it be time, money or both; watching a home purchase explode days before closing is painful. It’s also expensive for the potential homebuyer and can be a setback that pushes a potential home purchase into next home buying season or beyond. It can almost always be avoided too. Get PreApproved For a Home Purchase It all starts with a great team. Choose your mortgage…continue reading →

When is Your Credit Score Not Actually Your Credit Score?

How about when you get a mortgage lender to pull it? Maybe. Anytime it is important is more concise. It’s frustrating no doubt: Scrimping and saving for 6+ months to have that down payment you need to get a lower rate. Dutifully watching what you assume to be your credit scores flick and flutter throughout the months you are saving. Prospective homebuyers are often confused, chagrined or downright furious when they learn mortgage & auto lenders see a different score than they do. They should be. How is that fair? The reality is…continue reading →

How Does Falling Oil Price Impact Mortgage Rates?

Gas is cheap - pleasantly affordable even. Americans from coast to coast are saving money. I am saving money. How long will our good fortune last? It depends, how long will crude oil prices stay low? Low oil prices are offering a hidden gift to consumers that goes beyond the gas pump: They also indirectly support lower mortgage rates. Despite a fairly significant uptick in rates over the past week or so, rates on the 30 Yr fixed remained very close to historic lows. Freddie Mac, who has surveyed mortgage lenders since 1973…continue reading →

Employment, Oil and Fed – Triple Whammy Spikes Mortgage Rates

Usually good employment report in itself is bad enough for mortgage rates. Combine that with a rally in Oil and a statement from a regional Fed President and you have a perfect storm. Employment Report - US added 257,000 jobs last month (much higher than the predicted number of 237,000). The November and December numbers were also revised up sharply. If that isn't strong enough, the wages went up too - the average hourly wage of private sector workers rose 0.5% from December. This is the greatest 3 month job gain in 17…continue reading →

Are We Heading Into One Of The Strongest Buying Seasons?

Every month the National Association of Realtors (NAR®) tracks metrics key to the overall health of the housing market.  There are a number of important metrics you would want to pay attention to, if housing data analysis is in your wheelhouse, or if you are pondering your next housing move. One of the most  eagerly anticipated, and one of the most telling, metrics is “existing-home sales.”  The data set that is used to track this all-important metric is compiled nationally from Multiple Listing Service (MLS) data. The data used to determine existing home…continue reading →