mortgage rates: Mortgage Market Update - A good day to lock! - 04/11/17 07:48 AM

mortgage rates: White House Turmoil Lowers Interest Rates - 04/01/17 10:06 AM
If you remember, right after the election in November, the stock market started to climb based on assumptions of pro-business policies that the Trump campaign had promised.
While Wall Street was very bullish, and the Dow climbed, the bond market suffered and mortgage interest rates went up very quickly. Well, we've had a reprieve caused by the struggle to get health care reform done, and the other issues swirling around the White House.
While interest rates are still slightly higher than they were in November,  they have improved over the past couple of weeks. This is a real opportunity for people who thought they … (0 comments)

mortgage rates: As Expected The Fed Raised Rates .25 - 03/15/17 11:46 AM
Well, the Fed raised the federal fund rate .25 surprising absolutely no one. The good news is the market was expecting this, and mortgage rates actually improved slightly.
The Fed also signaled that they intend to continue tightening our monetary policy throughout the year. That means we can expect to see at least two if not three additional .25  increases. 
Overall, now will be the best time to purchase homes and to sell homes. Mortgage interest rates will reach 5% this year for 30 year fixed loan.  While historically low, and this will reduce purchasing power and particularly first-time homebuyers need to get … (4 comments)

mortgage rates: Mortgage rates lower for the first time in more than two months - 01/06/17 12:36 PM

Fixed mortgage rates, which have been on a tear since the presidential election, retreated this week, falling for the first time in nine weeks.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average tumbled to 4.2 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.32 percent a week ago and 3.97 percent a year ago.
Read the source article at The Washington Post 

mortgage rates: What is Happening to the Bond Market ?? - 12/01/16 10:22 AM
Those that know me know I am a roll with the punches, always keep a positive attitude, silver linings guy. I know markets will change and I advise my clients with common sense and experience.
Pardon me, but I am freaking out just a little at the moment. Two days ago our regional paper asked me to write an article about where interest rates were going. I responded with a well reasoned analysis of the surprise enthusiasm after the election, a leveling off and then a steady increase through the new year. I expected bonds would recover and stay in the 99.5 to … (2 comments)

mortgage rates: Where mortgage rates headed in 2017? - 11/29/16 10:07 AM
Where mortgage rates headed in 2017?
There are two answers to that question, a short-term answer and a long-term answer.
To answer the short term question we need to start at the election in November. In the weeks after the election the stock market rallied to a historic high but the bond market dropped over 300 basis points. That drop in the bond market which directly impacts interest rates, is what most people were expecting to occur during 2017. The fact that it happened over a 10 day period was a bit of a shock to the system as mortgage rates increased approximately … (1 comments)

mortgage rates: Fed Not Likely To Increase Rates This Year! - 08/18/16 09:26 AM

There are only three meetings left this year for the Federal Open Market Committee, and the likelihood they’ll raise interest rates in one of them looks slim. Judging by the latest meeting minutes, the Fed isn’t making any sudden changes, per usual.
Read the source article at U.S. Housing Finance News

mortgage rates: What is The Highest Rate You Have Paid on a Mortgage? - 08/08/16 02:08 PM
I was discussing locking a loan with a client on a Jumbo loan here in San Diego. They were buying a million dollar home and needed an $800,000 loan. I asked him his exit strategy to determine how long he thought he would be in the home. I asked because I thought I could get him a 10 year ARM at 3.00% and a 30 Year fixed was 3.75%.
His response was "why is the 30 year so high". Yes the bottom of the market did see the 30 year at 3.5% but a better jobs report combined with investors trying to slow … (0 comments)

mortgage rates: Interest Rates Are the Lowest They Have Ever Been! - 08/05/16 12:04 AM

You’ve probably heard the words “lowest rates” often in the last few years, but as of yesterday, interest rates fell to the lowest they’ve ever been!
Since the United Kingdom voted to leave the EU, interest rates in the U.S. have been dropping, and as of August 1st, they’ve fallen lower than ever before. This is a once in a lifetime event!
So what does this mean for potential home buyers and home owners who want to refinance? Rates could arguably be lower, but banks and investors only have so much capacity and also use rates to control volume. 
It means that you might want to … (2 comments)

mortgage rates: What does BREXIT mean to Real Estate in US ?? - 06/27/16 09:21 AM
 Well it is not what I was hoping for, but the British people decide to exit the EU.
What does that mean for the US? Well from the lending side it means rates are low and likely to stay that way. Even if Brexit is not the best for the global economy it does present a great opportunity to buy or re-finance a mortgage.
It also means Janet Yellen and the FED will not raise rates, they may in fact reverse the .25 they added earlier this year and continuing to roll back the Quantitative Easing that had existed since 2008.
The bottom line is … (2 comments)

mortgage rates: Rates Lowest in 3 Years Means Now Can Be a Great Time To Refinance ! - 06/17/16 08:11 AM
If you’ve been wondering when a good time to refinance your home is, I’m here to tell you that the time is now!
Refinancing can be a great way to save money every month and reduce your monthly payment.
Lucky for you, rates are at historic lows, and they’re lower than they’ve been for three years. So refinancing right now could help save you thousands of dollars over the life of your mortgage. Just think of what you can do with that extra money!
Rates can go up at any moment, so waiting to refinance can mean losing out on saving money. Don’t let … (2 comments)

mortgage rates: Did you miss it ?? - 03/27/15 03:41 AM
This past week may have been the best week to lock in 2015! Especially for Jumbo financing. Rates on 30 year fixed loans on Wednesday for the best borrowers were 3.625% to 3.75% FIXED.
My near term outlook remains positive, and rates are still historically amazing. However, the magnitude of the selling the last two days is  worrisome.
Initial Weekly Jobless Claims: 282K vs est of 290K very close to consensus estimates and not a driving force in rates in early bond trading.
February New Home Sales finally broke above 500K with a reading of 539K vs market expectations of … (0 comments)

mortgage rates: BUY NOW! the sequel! - 04/14/14 11:36 AM
I wrote a blog 26 days ago suggesting those on the fence to buy a home get moving. Indications are that NOW is a great time to get historically low rates before the politicians figure out a way to get the economy moving before the mid term elections.  While last week's economic calendar may have started off on the quiet side, the news picked up steam in the second half of the week. Read on for the highlights.
There was good news in the labor markets, as weekly Initial Jobless Claims fell by 32,000 in the latest week to 300,000. This was … (0 comments)

mortgage rates: Buy now! Rates are going to go higher! - 03/19/14 07:09 AM
You gotta love the government, “The Fed reaffirmed its plan to keep short-term rates low to help support the economy.” Then this, literally in the next paragraph, “The central bank also said it will cut its monthly long-term bond purchases by another $10 billion to $55 billion because it thinks the economy is strong enough to support further improvements in the job market.
”Rates are on the way up, now is the time to buy!

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mortgage rates: What makes mortgage rate change all the time? - 02/10/14 01:29 AM
Mortgage rates are primarily driven by bond markets. If people flee the stock market and move money to more conservative investments like bonds rates generally drop. Here is a calendar of what might affect rates this week.
The bond and mortgage markets opened quietly unchanged early this morning with stock indexes slightly lower at 8:30. There are no scheduled economic releases today, and this week has just a few key reports later in the week. The week  is dominated by Federal Reserve officials speaking and Janet Yellen testifying at the House and Senate in the semi-annual required testimony by the head of … (1 comments)

mortgage rates: First Women Fed Chief! - 01/07/14 10:16 AM
Janet Yellen has been confirmed as the next chief of the Federal Reserve, making her the first woman in charge of the central bank in its 100-year history.  Ms. Yellen is considered to be dovish when it comes to monetary policy.  This may not mean too much.  But, should the economy slip like it has each of the past few years – further tapering may be put off.  There is even an outside chance that if the economy slows and inflation cools too much – we may see the Bond buying pick up.
Mortgage Bonds continue to trade in a sideways … (1 comments)

mortgage rates: Lock em If you got em! - 01/03/14 01:15 AM
If you have clients floating, waiting for a better rate they may be disappointed. Mortgage Bonds are drifting lower so far today as prices remain in a wide sideways range with little impetus to move meaningfully higher.   
Standard & Poor’s (S&P) is making some positive predictions within its recently published 2014 US Housing and Residential Mortgage Finance outlook.  They see just a 15% - 20% risk of a recession, continued declines in negative home equity rates and a 6% increase in the S&P Case Shiller 20-City Home Price Index. 6% is healthy and in line with more historical rates of appreciation.  

mortgage rates: Fed Announces Tapering to begin in Jan - 12/20/13 03:29 AM
Heading into Wednesday's highly anticipated Fed meeting, investors were divided about what the Fed statement would reveal. The Fed announced that it will begin to scale back its bond purchase program. The stock market rallied after the news, but mortgage rates rose modestly and ended the week a little higher.
The Fed announced that it will begin to scale back its bond purchases from $85 billion per month to $75 billion. Treasury and MBS purchases each will be reduced by $5 billion per month. Fed officials expect to continue reducing the pace of bond purchases at future meetings depending on … (2 comments)

mortgage rates: Cautiously Floating- Last full trading day of 2013 - 12/20/13 03:25 AM
The last full week of trading in 2013 ends today as the Christmas holiday approaches. And looking ahead to next week, the Bond markets will be closing at 2:00pm ET on Christmas Eve, while Stock trading ends at 1:00pm. All capital markets are closed on Wednesday, December 25 in observance of Christmas.
Mortgage Bonds opened lower and pushed further into negative territory after a government report showed that economic growth grew faster than first estimated in the 3rd quarter of this year.  But Bonds were able to shrug off the good news and roared back into positive territory. 
The Bureau of Economic Analysis … (0 comments)

mortgage rates: Should your clients lock their loans? - 12/04/13 01:32 AM
YES!  We would recommend locking prior to Friday's job report. Good News in the economy is bad news for Bonds – be sure your clients and referral partners get it.  ADP which provides a look into the health of the labor market, reported that there were 215K jobs created in the private sector in November, well above the 160K.  October's numbers were also revised sharply higher to 184K from 130K.  The gains in November represent the largest in a year.  The report comes before the government's official November Jobs report this Friday where it is expected that both private and government employers … (0 comments)

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Matt Brady

Lending With Competence And Character

Del Mar, CA

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