Mortgage News

Mortgage Rates Moderately Higher Today

Mortgage Rate News - Tue, 04/14/2020 - 17:25
Mortgage rates were moderately to significantly higher today depending on the lender, the program, and on one's own definition of words like "moderate" and "significant." If you're well aware of the recently extreme level of variability between lenders and volatility in mortgage rate pricing, then today was just another random day. But in the context of more normal times, rates were disappointingly higher. It's also worth mentioning that disappointment is relative considering we're still talking about conventional 30yr fixed rates in the mid-3% range. In the current environment, so much depends on specifics and context. We can talk about the average lender moving in a general direction on the average conventional loan. But if you are a well-qualified FHA/VA borrower, you may have seen pricing
Categories: Mortgage News

1 Step Forward and 2 Back For Mortgage Rates

Mortgage Rate News - Mon, 04/13/2020 - 17:42
Mortgage rates have been volatile and unpredictable to say the least. Some of this has to do with overall market volatility surrounding the market's reaction to new realities presented by coronavirus. On a tangential note, the pandemic created a separate, bigger issue for the mortgage market with the CARES Act (which invites those in need to skip up to 360 days of mortgage payments even if they can't document that need). Mortgage investors are guaranteed timely repayment by mortgage servicers and housing agencies, but the volume of forbearances could mean there's not enough cash for the normal guarantees. The result is drastically reduced demand among investors until they get a better sense of the fallout. Lower demand = higher rates, all other things being equal. Rates are only as low as they
Categories: Mortgage News

Lowest Rates in 8 Years, But All Kinds of Disclaimers

Mortgage Rate News - Thu, 02/27/2020 - 18:29
Mortgage rates hit the lowest levels in 8 years either today or yesterday, depending on the lender, just narrowly edging out the rates seen in early July 2016. There are multiple caveats, however. First off, lenders are responding to recent market movements in different ways. Some lenders move down faster and then remain flat even as the bond market (which dictates rates) improves. Other lenders have been slow to react, but have since moved down more steadily. Still others are somewhere between those extremes. Perhaps the most important thing to note about mortgage rates this week is that, while they are certainly at long-term lows, they are absolutely NOT moving lower as fast or as much as US Treasury yields. I discussed this in greater detail in the previous rate article and then again this
Categories: Mortgage News

Important Lessons From Near-Record Low Mortgage Rates

Mortgage Rate News - Mon, 02/24/2020 - 20:24
Mortgage rates continue to carve out the unlikeliest of victories in 2020 with significant help from coronavirus. The epidemic has taken a year that was almost certain to start off with a steady move toward higher rates and turned it into one of the strongest starts on record. In fact, when it comes to the combination of ground covered and levels achieved, no other year has started off any better. Other years have seen a similarly big drop in rates during Jan/Feb, but there aren't many. Of those years, 2016 was the only one to remotely match the rates we're currently seeing. Unless tragedy strikes the mortgage world by the end of this week, 2020's late February rates will be roughly 0.25% lower than they were in 2016. But rates ultimately did move lower in 2016 after the Brexit vote in late
Categories: Mortgage News

Mortgage Rates Back Near Multi-Year Lows

Mortgage Rate News - Thu, 02/20/2020 - 16:36
Mortgage rates haven't been this low for this long in years--3.5 years to be exact. Brexit was the talk of the town in the middle of 2016 and it resulted in rates very close to all-time lows for well over 3 months (all of July, Aug, Sept). Although rates aren't quite as low this time around, they average lender is still quoting 3.5% or lower on top tier scenarios. That's only happened on a consistent basis in 2016 and 2012. Moreover, the current stint is approaching a month in length. Combine that with the fact that rates haven't been over 3.875% since the middle of 2019, and the current mortgage environment is more than worthy of being viewed in the same legendary light as 2012 and 2016. In 2012 it was the European crisis and massive central bank bond buying. In 2016 it was Brexit and massive
Categories: Mortgage News

Mortgage Rates Hangin' Tough Despite Stock Market Recovery

Mortgage Rate News - Fri, 02/14/2020 - 17:26
Mortgage rates have primarily been at the whim of the general tone of coronavirus news for the past few weeks. That meant a swift move to multi-year lows followed by an uneven correction back toward higher levels. But the correction has been anything but threatening, and it stands in stark contrast to a much sharper correction seen in the stock market (i.e. stocks quickly got over coronavirus fears and returned to all-time highs). Why are rates able to hang tough at levels that are still quite close to long-term lows while other parts of the market seem to have moved on? Although the US stock market has moved on to some extent, Asian equities markets have not. They are pricing in the global economic impact that will ultimately be seen due to coronavirus. Granted, that impact may not be huge
Categories: Mortgage News

Mortgage Rates Still Giving Back Coronavirus Gains

Mortgage Rate News - Wed, 02/12/2020 - 17:12
Mortgage rates have spent just over a week moving back up from the lowest levels in more than three and a half years. Those long-term lows came courtesy of the panic surrounding the coronavirus outbreak, which led investors to move more money into safe havens like bonds. When demand for bonds rises, rates fall, including mortgage rates. The move back up coincides with a steady decrease in the level of panic surrounding the outbreak. Global stock markets have not been shy about reversing coronavirus-related losses, with US stocks actually back to all-time highs. Chinese equities haven't made up nearly as much ground by comparison. And finally, the bond market (which dictates interest rates) isn't anywhere close to its pre-coronavirus levels. All of that having been said, rates are still moving
Categories: Mortgage News

Mortgage Rates May Be Pressured Higher As Virus Fears Ebb

Mortgage Rate News - Tue, 02/11/2020 - 16:49
Mortgage rates were very slightly higher today after being modestly lower over the weekend, but in general, remain very close to the lowest levels in more than 3 years. They weren't too much higher than current levels even before the coronavirus outbreak took center stage, but the virus definitely deserves credit for the extra downward momentum in recent weeks. Given that Chinese equities markets are already indicating the financial market psyche has shifted, it may only be a matter of time before US bond markets (which dictate mortgage rates) follow suit. That's not to say that bonds must follow stocks. If that were the case, we wouldn't see bond yields close to all-time lows while stocks are at all-time highs. Rather, it's simply a comment on the fact that Chinese equities serve as a good
Categories: Mortgage News