Mortgage Update January 22 2018

“Mortgage Bonds begin the week near unchanged as the government shutdown enters its third day. There are no economic reports due for release today and the rest of the week’s calendar is light with housing and GDP in the spotlight.
I am recommending locking except for the those files that are new today with 45+ days to close. Have a great week!”

Mortgage Update January 19 2018

“Mortgage Bond prices are slightly lower and Stocks are mixed in the face of a possible government shutdown at midnight tonight. In economic news, Consumer Sentiment edged lower in early January though consumers reported persistent strength in personal finances and buying plans. I am recommending locking at current levels. If anything changes I will get back to you. Have a great weekend!”

Mortgage Update January 18 2018

“Mortgage Bond prices are being driven lower by improving economic conditions, higher inflation numbers and additional global Bond supply. Mortgage rates were reported the highest since last March though they remain at historically attractive levels. In housing news, December Housing Starts declined from November, while Weekly Initial Jobless Claims are at the lows seen in the early 1970s. The good news? Buying a home is not driven by rate, but by economic prospects and confidence in employment … and right now those metrics are the highest in years which should be a great tailwind for the home purchase market. I am recommending locking at current levels. If anything changes, I will get back to you.”

Mortgage Update January 17 2018

“Mortgage Bonds begin the day lower as volatility is back in full swing. Stocks are higher once again on strong corporate earnings along with upgrades to IBM and Citigroup. In housing news, the NAHB Housing Market Index for January remained at frothy levels. I am recommending carefully floating, but be aware that sentiment can quickly reverse. If anything changes, I will get back to you.”

Mortgage Update January 16 2018

“Mortgage Bonds begin the holiday-shortened week slightly higher despite the continued rally in Stocks. Housing news will be in the spotlight this week with a light economic calendar on tap. Home loan rates continue to hover just above all-time lows. I am recommending carefully floating but be aware that rising Stock prices could quickly reverse sentiment in the Bond markets. If anything changes, I will get back to you. Have a great week!”

Mortgage Update January 12 2018

“Mortgage Bond prices are modestly lower this morning after a hotter than expected inflation report. Home loan rates edged a bit higher this week though they still remain historically attractive. I am recommending carefully floating but be aware that sentiment can quickly reverse. If anything changes, I will get back to you. The U.S. capital markets and banks are closed on Monday in observance of Martin Luther King Day. Have a great long weekend!”

Mortgage Update January 11 2018

“Mortgage Bond prices are stabilizing this morning after yesterday’s declines, while the Stock markets continue to march higher. In economic news, wholesale inflation from the Producer Price Index was tame in December, while Weekly Initial Jobless Claims rose. Both reports were interest rate friendly. Home loan rates continue to remain historically attractive. I am recommending carefully floating as Mortgage Bond prices try to stabilize. If anything changes, I will get back to you.”

Mortgage Update January 10 2018

“Reports that China may slow or halt purchases of U.S. government securities are pushing U.S. Bond prices lower and yields higher this morning. The Mortgage Bankers Association reports that home loan rates were essentially unchanged last week, but they could be edging higher this week in Freddie Mac’s survey. However, home loan rates continue to remain historically attractive. I am recommending carefully floating brand new files coming in the door today. If anything changes, I will get back to you.”

Mortgage Update January 9 2018

“Mortgage Bond prices continue to edge lower this morning as the rally in the Stock markets marches on. There were no economic reports released today. The Treasury will sell 3-year Notes today and the added supply could impact Bond prices. Home loan rates remain just above all-time lows. I am recommending locking most files. Floating would be prudent for those files that have a lot of time to close and the intestinal fortitude to watch more price erosion.
If anything changes, I will bet back to you.”

Mortgage Update January 8 2018

“Mortgage Bonds begin the week flat to modestly lower, this despite lower Stock prices. In housing news, Fannie Mae reports that its Home Purchase Sentiment Index declined in December from November. With Mortgage Bond prices unable to improve today in a down Stock market, I am recommending locking. If anything changes, I will get back to you. Have a great week!”