Mortgage Rate Recap and Outlook for the Week Ending November 22, 2019

The effect of the Hong Kong protests (compounded by the judiciary’s stay on the mask ban) may not be as forthcoming immediately. Yet, it has what it takes to derail even the German and the US economy to some degree. It does not augur well for a US economy already being hit by the Trade War. The protests in Hong Kong (a Special Administrative Region of China) may well have brought the US Treasury down last week, thus bringing the 30 Yr Fixed below 4%. Mortgage Rates: Rates Decrease across the Platform This…continue reading →

Mortgage Rate Recap and Outlook for the Week Ending November 15, 2019

When the bond yield curve had inverted in late August, the USA began to harbor recessionary fears. These fears have since diluted; a trend reflected by a slight increase in the mortgage rates over the last couple of months. America's manufacturing sector is still under the pump and this creates an atmosphere of economic weakness. At such times, investors may rush for bonds thereby decreasing bond yields and bringing down interest rate along with it. Of course, if it turns out this way, mortgage shoppers will feel a little more confident about their…continue reading →

Mortgage Rate Recap and Outlook for the Week Ending November 8, 2019

At the time of writing this piece, we await the University of Michigan's Consumer Sentiment Index. It is expected to rally close to 96. Mortgage shoppers will have their eyes glued to it. It is worth noting that the higher the number, the more optimistic the consumers are and hence more likely to make purchases in the near future, the situation clearly affecting the mortgage rate. Mortgage shoppers will hope for their greater good that the index doesn't rise past October's 95.5 MortgageRates: rates decrease across the board This week’s Mortgage Banking Associations’ (MBA) weekly rate survey reveals…continue reading →

Mortgage Rate Recap and Outlook for the Week Ending October 30, 2019

Manufacturer sentiment has grown in October according to ISM's October Manufacturing Index but the reading of 48.3, despite being an uptick on September's 47.8, is still below 50 (chief wreckers being weak global growth cues, appreciated dollar and trade skepticism). This, though, spells good tidings for the mortgage market. With over a decade of following economic expansion, one expects the labor market to rally. And while the October percentage may not be as good as recent times, adding 128,000 new jobs and posting 3.6% unemployment rate is applaudable (and, in fact, beyond expectation),…continue reading →

Mortgage Rate Recap and Outlook for the Week Ending October 23, 2019

Call it the rise of the Planet Automaton, or simply, lack of productivity but wage growth (and it has foxed economists) is sluggishly seen in the light of the low unemployment rate. This is the exact opposite of how the cookie is supposed to crumble in times of expansion.    Federal spending (up by 8% for Fiscal ‘19’) has overrun an increase in revenue (up by 4%), leaving our country with a shade under a $1 trillion fiscal deficit. Never in the last 7 years has the budget gap been so wide. The…continue reading →

Mortgage Rate Recap and Outlook for the Week Ending October 16, 2019

The US economy added 140,000 jobs in September, thus keeping the unemployment rate hovering around the acceptable 3.7% mark. And so, though job growth has cooled, we are still at a point where the layoffs are not going out of hand- a possible turnabout that could compromise the US expansion project. Exports are weak, thanks to the trade war. The manufacturing industry is unquestionably in a state of contraction and the service sector has been carried away in its slipstream. And while the US, nobly, is not transferring tariff costs to the end-consumer…continue reading →

My 2019 Predictions for Mortgage Rates, Home Prices, and Stock Market

"It's tough to make predictions, especially about the future" - Yogi Berra And when it comes to predicting Stock Markets, Home Prices, and Mortgage Rates, well, it becomes tougher.  All three are impacted by such myriad of geopolitical and economic news and the emotions resulting from them that it's virtually impossible to foresee all of the variables at the beginning of the year. With that caveat, let's dive into where we are at the beginning of the year and where we are heading or at least where I think we are heading. 2019 Dynamics…continue reading →

Mortgage Rate Recap and Predictions For Week Ending October 19th, 2018

Yesterday the Fed released the Beige Book which contained an even stronger emphasis on the impact of tariffs and labor shortages than the previous two publications. Along with that, all twelve districts in the U.S. said the economy is expanding moderately or at a moderate pace in their region. The issue of labor shortages isn't new news, but employers are stepping up their enticements to try and lure potential job candidates, which include job training and no drug testing. They aren't, however, increasing wage levels but offer non-cash benefits to entice workers. Pending…continue reading →

Mortgage Rate Recap For Week Ending October 19th and Outlook for Week of October 22, 2018

The overview for the week is that housing markets are weakening, growth in wages continues to be below expectations, and Saudi Arabia is in a negative spotlight over the killing of a critic of the Saudi Crown Prince. The stock market is experiencing significant volatility, which saw a gain of 547 points in the DJIA on Tuesday (half of the prior week's loss), but losses on Wednesday and today total 14 points more than the gain on Tuesday. So on top of last weeks -1007, the DJIA is down another 65 points so…continue reading →

Mortgage Rate Recap and Outlook For Week Ending September 28, 2018

The Federal Reserve raised the Fed Fund overnight rate by one-quarter percent yesterday, as predicted. Commentary by Fed President Powell also indicted another increase will come at their December meeting. The markets expected this rate increase so minimal movement in the markets as a result. Further based on the commentary released from the Fed meeting yesterday, going forward the Federal Reserve Board is going to be more reactive and sensitive to market changes. Given this strategy, it's difficult to predict the timing of future rate hikes over the next two years. The Fed…continue reading →

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