Mortgage Update February 28 2018

“Newly appointed Fed Chairman Powell sent a chill throughout the U.S. markets yesterday signaling there could be a faster pace of interest rate hikes this year. In economic news, the second reading on fourth quarter 2017 Gross Domestic Product was in line with estimates while manufacturing activity in the Chicago region was lower than expectations. Mortgage rates remained unchanged in the latest week, reports the Mortgage Bankers Association. I am recommending floating but Mortgage Bond prices remain on shaky ground. If anything changes, I will get back to you.”

Mortgage Update February 27 2018

“Mortgage Bond prices are near unchanged as Fed Chairman Jerome Powell testifies in front of the House Financial Services Committee on the state of the U.S. economy. In economic news, home prices continued to rise in December, reports S&P Case-Shiller. In addition, February Consumer Confidence hit its highest level since November 2000. I am recommending floating but be aware that sentiment can quickly reverse. If anything changes, I will get back to you.”

Mortgage Update February 26 2018

“Mortgage Bonds begin the week modestly higher ahead of a packed economic calendar and Fed Chair Powell on Capitol Hill. It’s a big week for economic data with readings on housing, inflation, manufacturing, economic growth and consumer attitudes. January New Home Sales will be released at 10:00 a.m. ET this morning. I am recommending floating but be aware that volatility continues in the markets. If anything changes, I will get back to you. Have a great week!”

Mortgage Update February 23 2018

“Mortgage Bonds are trading higher this morning in an attempt to recover from 4 1/2 year price lows this past Tuesday. There were no economic reports released today. Freddie Mac reported that cash out refinancing for the fourth quarter of 2017 rose to their highest level since the third quarter of 2008. I am recommending floating but be aware the sentiment can quickly reverse. If anything changes, I will get back to you. Have a great weekend!”

Mortgage Update February 22 2018

“Mortgage Bonds are bouncing a bit higher after yesterday’s steep losses. In economic news, first time unemployment claims continue to hover near the lows seen in the early 1970s. I am recommending floating but be aware that sentiment can quickly reverse. If anything changes, I will get back to you.”

Mortgage Update February 21 2018

“Mortgage Bond prices are near unchanged as they continue to hammer out a base of support at four-year price lows. In housing news, January Existing Home Sales declined from December due in part to a low level of homes for sale on the market. I am recommending floating. If anything changes, I will get back to you.”

Mortgage Update February 20 2018

“Mortgage Bonds begin the week lower as the roller coaster trading pattern continues. There are no economic reports due for release today and the week’s calendar is virtually non-existent with just Existing Home Sales and Weekly Claims. To begin the week I am recommending floating, but be mindful that sentiment can quickly reverse. If anything changes, I will get back to you.
Have a great week!”

Mortgage Update February 16 2018

“Mortgage Bond prices are higher as they try to build on yesterday’s gains. In economic news, Housing Starts in January rose nearly 10% from December to the highest level in more than a year. The big gains come despite the recent rise in home loan rates though they still remain historically attractive. I am recommending floating heading into the long holiday weekend. If anything changes, I will get back to you. Have a great weekend!”

Mortgage Update February 15 2018

“Mortgage Bond prices are modestly higher this morning after yesterday’s decline. In economic news, wholesale inflation was a bit hotter than expected while the NAHB Housing Market Index remained at lofty levels. Freddie Mac reported that home loan rates increased once again this week though they remain historically low. I am recommending floating as long as Mortgage Bond prices can remain positive. If anything changes, I will get back to you.”

Mortgage Update February 14 2018

“Hotter-than-expected inflation from consumer prices pushed both Stock and Bond prices lower this morning though Bonds are off their worst levels, while Stocks have turned positive. The Mortgage Bankers Association reports that home loan rates rose to their highest level in four years though they still remain historically low. With Mortgage Bond prices at such low levels, I am recommending floating. However, sentiment can quickly reverse in this environment. If anything changes, I will get back to you.”