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 →

Mortgage Rate Recap and Outlook For Week Ending March 16, 2018

This week's news has had little impact on mortgage rates.  Trade war concerns shifted from steel and aluminum tariffs to China's history of piracy issues in technology and intellectual property. The majority of the media commentary is around the appointment of Larry Kudlow as White House economic advisor. Kudlow has a pro-growth, anti-tariff, pro-tax-cuts stance, and those are negatives for long bonds (which directly impact mortgage rates). The elephant in the room is the Senate's passing a bipartisan bill relaxing restrictions placed on the banking industry via the 2010 Dodd-Frank Act.  The new…continue reading →

Mortgage Rate Recap and Outlook For Week Ending March 9, 2018

The big news dominating financial markets right now is split between the continued improvement in employment numbers and the potential impact of the pending Tariffs on steel and aluminum. So far this year, most economic releases have met or exceeded predictions, proving that the economy is growing. But right now - the focus of the markets is on speculation about a potential global trade war when the tariff bill is signed by President Trump. As far as the upcoming Fed meeting, markets have already absorbed the effect of the pending rate increase. The…continue reading →

Mortgage Rates Rise To The Highest Levels In ~3 Years

After rising for the 5th straight week, 30-Year-Fixed mortgage rates are now at the highest levels since April 2014. 15 Year-Fixed is fairing even worse; now at the highest levels in almost 7 years. According to Mortgage Banker Association weekly survey,  30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since April 2014, 4.50 percent, from 4.41 percent, with points increasing to 0.57 from 0.56. 1 point is equal to 1% of the loan amount. The interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than…continue reading →

Mortgage Interest Rate Prediction for 2018

Fannie Mae, Freddie Mac, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) have all issued their economic forecasts for 2018, including their predictions for where mortgage interest rates will be by the 4th quarter of the year. And while their attention is focused on the same key factors impacting our economy this year - individual predictions for the year ending rates range from a stable 4.1% (Fannie Mae) to a cringe-worthy 4.9% (Freddie Mac and MBA) 30 year fixed rate mortgages. Clearly -- they’re not buying their crystal balls…continue reading →

Will Mortgage Rates Ever Go Back Up?

Some of you reading this will remember this number - 16.63 percent. That was the average mortgage rate in 1981. In fact, from 1980 to 1991 the average mortgage never dipped below 10 percent. The 1990’s were a little kinder for homebuyers and homeowners though - the average mortgage rate for that decade was a mere 8.11 percent. As we ushered in a new millennia in 2000 the average mortgage rate stood squarely at 8.05 percent before dipping into new territory in 2003 - the fives. New ground was broken yet again in…continue reading →

The Insider Secret of a No Closing Cost Mortgage

Mortgage quotes come with options that you may not be aware exist, but definitely need to understand if you want the best mortgage for your unique situation. The terminology used by mortgage lenders to describe these options is probably foreign to most borrowers - par, above par and below par pricing. These mortgage terms also come with more consumer friendly names - especially above par pricing and below par pricing. Consider par pricing in golfing terms - if you make a par you are even. You neither pay more or less for the…continue reading →

What Brexit Means to the Mortgage Market

The United Kingdom - surprisingly and foolishly in my opinion - voted to exit the European Union yesterday. Brexit - dutifully dubbed by the acronym loving media - will have wide-ranging effects on multiple continents and countries - including right here in the USA. One of the biggest, and most immediate, effects for Americans is how it will change mortgage interest rates. In fact, the positive change in rates can already be felt - for now. In the typical “flight to safety” reaction by international investors, they moved assets from flailing equity markets…continue reading →