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 →

Mortgage Rate Recap and Outlook For Week Ending May 18, 2018

Jobs data released this week was very positive, with jobless claims at their lowest levels since 1969. On top of that, the frequently volatile Philadelphia Fed Business Outlook Survey came in at 34.4 versus the predicted 21.0. As far as geopolitical events having an impact on trading we had some uncertainty over North Korea - South Korea talks even happening, let alone the historic meeting between a US Pres and North Korean leader. However, this did little to move the markets, as has the continuing back and forth over a US-China trade war.…
continue reading →

Mortgage Rate Recap and Outlook For Week Ending May 11, 2018

Most of the economic data released this week has been in line with predictions and expectations resulting in a little to no impact on the long-term bond market, which has a direct effect on mortgage rates. Mortgage Backed Securities (MBS) reacted negatively yesterday to two factors: oil moving above $71/barrel, and a slight reduction in geopolitical concerns.  It remains to be seen what will unfold with Iran, but with Wednesday's announcement, the market has moved on and to a positive reaction in the scheduling of the North Korea talks. The bigger picture for…
continue reading →

Mortgage Rate Recap and Outlook For Week Ending May 4, 2018

While the stock market had a sell-off after the Federal Open Market Committee (FOMC) meeting yesterday, the mortgage bond market did not react to the Fed's leaving the overnight rate alone. Bond traders have already factored in the Fed's position on inflation and their predicted rate increases for the year and this month's FOMC meeting did not challenge that at all. While some key economic data hit the Fed's 2% target inflation rate, these are one-time markers, and the Fed is looking for a trend that encompasses a broader span of time to…
continue reading →

30 Year Fixed Mortgage Rates Quickly Heading Towards 5%

Mortgage Rates Recap and Outlook For the Week Ending April 27, 2018 30 Year Fixed Mortgage rates for Conforming Loans (Loan Amount $453,100 and below) climbed to the highest levels since September 2013. 30 Year Fixed Mortgage rates for Jumbo Loans (Loan Amount >$453,100) climbed to the highest levels since January 2014. The 15 Year Fixed mortgage rates climbed to the highest level in  7 years (Since April 2011). The 5/1 ARM rate didn't fare any better- rising to the highest level since February 2011. Because of the rapidly rising rate, the refinance share…
continue reading →

Mortgage Rate Recap and Outlook For Week Ending April 20, 2018

Mortgage-backed securities have languished in the same trading 'rut' for the last ten weeks. What's important about that is the top of the 'rut,' and the bottom of that 'rut,' and here's why. As the markets react to the release of economic indicators, national, and global news, bonds, and mortgage-backed securities have been rising and falling within the same tight range (i.e., the 'rut'). If they were to break out above the top of the range - mortgage rates would fall, and if they were to fall below the bottom of the range…
continue reading →

Mortgage Rate Recap and Outlook For Week Ending April 6, 2018

The markets continue to be impacted primarily by trade war fears, as China fires back this week with a list of trade tariffs against US goods after the US announced new tariffs on Tuesday. Both countries have not immediately implemented the tariffs, setting the stage for talks that will likely produce new formal trade agreements. This is the likely eventual outcome of the trade war drama that's impacted the markets in the last few weeks. The other significant market news this week was the reported increase in trade deficits, now at -$56.7 billion,…
continue reading →

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

The markets will close ahead of the long weekend at 2 pm EST on March 29th, and traders began 'parking" money in the bond market late Wednesday, the 28th. That means the market will react to the economic data released this week until Monday, April 2nd. We'll see traders moving money out of bonds and putting it to work, based on the data showing inflation increasing slightly. Top of the economic indicators released this week was the Feds key measure of inflation - Personal Consumption Expenditures (PCE) with a year-over-year (YOY) reading of…
continue reading →

Mortgage Rate Recap and Outlook For Week Ending March 23, 2018

This week's news focused on the Federal Reserve Bank's Open Market Committee meeting on March 21st, with minimal speculation about the outcome of the meeting -- an increase in the Federal Funds overnight rate.  There was a surprisingly mild reaction in the bond and stock market after the Fed hiked the rate from 1.5 to 1.75%, and increased their economic projections. But -- when the Fed meets, the real impact on the market is in the minutes of the meeting and commentary by individual Fed officials. Mortgage Backed Securities (MBS) moved to their…
continue reading →

Get Mortgage blog Delivered To You

res-mobile