What is happening to loan rates?

By
Mortgage and Lending with Finance Of America NMLS #311662

In the News

 

The core inflation report I told you about last week showed that inflation rose 3.6% in August from a year ago, the biggest jump in more than 30 years. Fed Chairman Powell said earlier this week that he finds this “frustrating.” Inflation may not be as “transitory” as they once thought. Here is what you should be on the lookout for this week:

Thursday:

  • Jobless claims

Friday:

  • Unemployment numbers

 

Both of these reports will give us a lens into how the economy is doing and therefore what moves the Fed will need to make.

Chart Check

I mentioned last week how the MBS will reach the #2 support line and test it. I said that I expect the market to over exaggerate as we lead up to these days, but may see a bounce back and that is what exactly what we saw. It then decided to bounce off the support line and actually poked above the #1 resistance line. See below

 

MBS 10-4

 

 

If it is able to stay about Line 1, then that line will have flipped from Resistance into Support and we can see some lower rates in the short term.

 

Conclusion

We are in a volatile period with rates, especially with inflation running higher. I’m letting my clients know what is going on with the markets and the Fed and if they are happy with the current rates, I’m locking them in. If the MBS stays above Line 1, then good times ahead, but it’s in the very beginning stages of that movement.

 

Please feel free to reach out with any questions with regards to rate and my thoughts on them. I’m more than happy to help out any way I can.

Posted by

Matt Brady

Builder Sales Manager, NMLS ID#311662

(858)342-8659 cell |844-268-1952 fax

mabrady@financeofamerica.comfamadvisor.com/matthewbrady   
8885 Rio San Diego Dr │ Suite 201  San Diego, CA 92108     

 

BIA SanDiego 19 year Member and P2 Sponsor

 

BIA SMCBoard Member since 2012

 

 

 

 

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