Mortgage Rate Recap and Outlook For Week Ending July 20th

Mortgage rates finished up another week at almost the same point that they began.  It's been a stagnant two+ months for rates, and it doesn't appear to be breaking out of that pattern soon. All the recent economic data continues to point to building inflation, primarily due to a severely tight labor market. Jobless claims announced this week were not only below predictions, but they hit a 60 year low. Federal Reserve Chairman Jerome Powell testified before the House this week, but his bias and policies are consistent, with no new information to…continue reading →

Mortgage Rate Recap And Outlook For Week Ending July 13th, 2018

Overall, despite steady inflationary trends in economic data (Consumer Price Index hit the highest level since 2012), the threat of trade wars is keeping a large portion of investor funds in the US long-term bond market. Without an influx of additional investor dollars into US Bonds, there'll be no noticeable improvement in mortgage rates. While the market also watched for results from the NATO summit, now that it's ended - nothing concrete came from it (the 2% spending level for all member nations was already in the 2014 budget) and attention remains focused on the increasing threat…continue reading →

Mortgage Rate Recap and Outlook For Week Ending June 29, 2018

It's tempting to take a risk and not lock in an interest rate when you see mortgage rates decline even by a small amount. This is not the week to give in to that temptation. The bond market, which directly impacts mortgage rates, is watching some potentially intense situations unfold globally and these situations could mean a reduction in interest rates if it weren't for one thing: technicals.  What does that even mean? First, let's look at the two leading global situations that have the bond markets' attention. The first is the EU…continue reading →

The Best Advice on What Not to Ask Your Mortgage Loan Officer

The saying "you don't even know what you don't know," might be the perfect description of someone starting the complicated process of getting a mortgage. Prospective borrowers need to do substantial research to learn which fundamental questions to ask when interviewing lenders. While there's no shortage of advice on the critical questions to ask, most of those questions will only get you a little of the information you need, and some of the questions are just plain wrong. So what should you ask, or not ask, when you interview lenders? In this post,…continue reading →

Mortgage Rate Recap and Outlook For Week Ending June 22, 2018

As of the end of April, the year-over-year (YOY) nationwide increase in home prices is at 6.4%, based on actual appraisals for all loans sold to Fannie Mae, Freddie Mac or Ginnie Mae (all conforming and government loans.) While it's now almost the end of June, and the data is aged, it's a positive sign from the standpoint that it's not double-digit appreciation which might indicate a housing price bubble. Overall, the markets have not held a lot of surprising data over the last week, with jobs and other economic indicators coming in…continue reading →

Mortgage Rate Recap and Outlook For Week Ending June 15, 2018

After trending down for the last two weeks, mortgage rates increased over the previous week and could continue that trend. This week saw the Federal Reserve raising not only the Fed Funds rate, but also the Prime Credit rate, and the Reserve Balance rate. In comments by the Federal Reserve Chairman, Jerome Powell, a hawkish shift from the Fed is apparent. Based on robust economic data, healthy rate of job growth and increased consumer spending, the Fed feels the potential to increase rates again in 2018 is likely. The increase in Retail Sales is…continue reading →

Mortgage Rate Recap and Outlook For Week Ending June 8, 2018

Without any geopolitical flare-ups over the last week, the impact of economic data has been very mild with no measurable effect on the markets or mortgage rates.  The biggest job news was the filing of Jobless claims coming in slightly below predictions, but the 4-week moving average ticked up to 225,500 - amazingly low. Global economic news has also had little effect on mortgage rates, with continued talk of a timeline to end qualitative easing (QE) in the ECB the only topic of import. While the markets are quiet now, all eyes are…continue reading →

Mortgage Rate Recap and Outlook For Week Ending June 1, 2018

The market continued to improve in the early part of the week, led by the drama coming from Italy and a sharp drop in oil prices.  These issues are no longer impacting the markets, and mid-week Mortgage Backed Securities began to move back into the red, creating a slight pressure of increasing rates to come. Year over year PCE, the key inflation indicator, came in at 1.8% - below the Feds target of 2% - and other economic data was also relatively mild. The release of the Feds Beige Book yesterday (not a…continue reading →

Mortgage Rate Recap and Outlook For Week Ending May 25, 2018

Some old influences on the long-term bond market worked to slightly lower rates this week, as fear of geopolitical events sparked a move of institutional money into the safety of the long-term bonds. Specifically - the negative talk from North Korea's leader and officials and the cancelation of the summit next month with the US brought back the fear factor that had influenced the market a couple of months ago. On top of that, the Mortgage-Backed Securities markets benefited from a more dovish stance from the Federal Reserve based on concerns about trade…continue reading →

What Interest Rate Can You Really Get For Your Mortgage?

When you set out to buy a home, one of the first things you look at is where mortgage interest rates are these days. The second thing you want to know is can you get that rate? If the answer is no and you can only get a higher interest rate, you'll want to know what gives? Understanding how they determine the interest rate you qualify for, versus what you see in a general online search, is critical. It boils down to the risk you represent to the lender, based on specific factors…continue reading →

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