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
Good Morning
I hope everyone got out and had a chance to vote yesterday. There are plenty of times when I think to myself, why does my one vote matter? Then I think about all the countries in the world who don’t allow their citizens a right to vote and realize how lucky we are to get a choice. I hoped there would be a massive write in vote to get me elected to something, even though I didn’t run for anything but, it wasn’t meant to be. Oh well.
So, rates have tentatively dropped back to their lower levels after a volatile week in the market. Will they hold or revert back, that’s anyone’s guess with the potential for a major move coming later today when Obama speaks to the nation slightly before the Federal Reserve releases their monthly statement. The speculations over the past week about the Fed’s statement has been one of the main factors in volatility and we will just have to wait and see what comes about this afternoon for direction going into the rest of the week.
If you’re sitting at home wondering what Freddie Mac is forecasting with the housing market, you can read it here.
Have a great week.
Rates: 30 year fixed at 4.125% and the 15 year at 3.50%, 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
Good Morning
Over the past 4 days, we have seen Mortgage Bonds declining in the market, what does that lead us to? Higher interest rates. You will see that from this time last week, interest rates have risen by .25%. This is a huge jump compared to the movement we have been seeing over the past 4-6 months.
A lot of this has to do with the same reason the Dow Jones dropped over 100 points this morning. Investors are starting to become worrisome about how much the Federal Reserve plans on putting into another stimulus package as well as their intentions for doing so. In the Mortgage Bond market, the fear is that the Federal Reserve wants to create an inflationary environment. Inflation is bad for Mortgage Bonds because of the long term nature of the investment, so when there is fear in the market about inflation, we will see Mortgage Bonds being sold off leading to higher interest rates. Bonds are dipping lower again this morning so it wouldn’t be out of the blue to see rates rise again by the end of the week.
If anyone finds a few shingles in their yard, they might be mine, that wind has been crazy!
Have a great week.
Rates: 30 year fixed at 4.375% and the 15 year at 3.75%, 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
Good Morning
Rates have lowered a little this morning after a bad day in the stock market yesterday. As always, there are multiple reasons why this may have happened, one theory is that this big move was in part due to China raising interest rates unexpectedly. The theory goes that if China’s economy slows down, then the world economy will most likely be affected as well.
Of course, Stocks are bouncing back today and although we haven’t seen this conversely affect the mortgage bond market as of yet, there is a strong possibility we could see a reversal in the next few days….of course, in this market climate…there is also a possibility they will stay right where they are at J.
So, on to the baby news: Our little girl, Elle (‘L’), is just over 3 months now and is occupying all of our free time as expected. I’m thinking of buying some stock in coffee with all my intake lately but other than the sleepiness, we’re absolutely ecstatic to have this little girl in our lives.
Have a great week.
Rates: 30 year fixed at 4.125% and the 15 year at 3.50%, 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
Good Morning
Once again, interest rates are holding steady, the 15 year fixed has dropped a little more but that’s about it.
The news that we have been watching was the carefully chosen words from the Federal Reserve yesterday when their meeting minutes were released. Their seems to be a growing sentiment that if the economy continues to crawl and unemployment keeps as high as it has been that they may feel a need to take more action as early as the beginning of next month, their next meeting.
What does that mean for interest rates? At this point it is anyone’s guess as to what action will be taken and how the market will react to that action. Historically, we’ve seen this result in immediate rises in conventional mortgage rates, my belief is to plan for the worst and hope for the best…we are still in an unpredictable and strange market climate, the past isn’t necessarily predicting the future…all we can do is hold on and see where this crazy train takes us.
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
Mortgage Planner of 10 years, specifying in ensuring that home buyers both understand and enjoy the mortgage process, not worrying about last minute changes and closings not happening.
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