November 10th Market Update: Rates are back on the rise.

Good Morning

I came across an article in regards to mortgage standards continuing to tighten with smaller banks here. On the larger scale from a broker’s perspective, we are also still seeing additional parameter tightening with mortgage’s on the wholesale side as well. Will it get easier to get people approved for loans going forward? I believe it will but we will not see the lax programs that were available 2-3 years ago making a comeback. Part of the reason there were major issues with the mortgage market to begin with is due to the poor choices made in how much and what people could get approved for.

We’re seeing rates take an immediate turn back upwards today and may even see them raise again by the end of the day at the pace the market is moving. Part of this movement in Mortgage Backed Securities (MBS) has to do with the jobless claims number released this morning but the majority of this is continued fears from the Federal Reserves announcement last week to put more money into the market in an attempt to curb deflation and bring about inflation. Inflation is never a good sentiment when it comes to buying MBS so we are seeing a sell off…leading to interest rates rising. Will it balance back out in a few days? Most likely but eventually the balance point is going to shift from the rates we are seeing today to a higher spectrum, it’s just a matter of when that will occur.

For now, we still have some great rates when you really think about it. There is still plenty of opportunity to take advantage.

Thanks

Matt

Have a great week.

Rates: 30 year fixed at 4.25% and the 15 year at 3.625%, FHA: 4.25%: As always rates change with individual credit scenarios and programs, with credit in the mid 700s and a 20% down payment these rates are what you should be seeing