Mortgage News

Mortgage Rates Enjoy Surprise Drop Ahead of Fed Day

Mortgage Rate News - Tue, 06/18/2019 - 17:33
Mortgage rates have generally been moving sideways for the past 2 weeks. This has accomplished a twofold goal of coming to terms with the strong gains seen in May as well as preparing for tomorrow's hotly-anticipated announcement from the Fed. It has been and continues to be the case that any major surprises (or even minor surprises) from the Fed could have big, immediate effects on rates for better or worse. But just as the sideways momentum was about to lull us to sleep this week, central bank news from across the Atlantic stepped up to change the field of play today. European Central Bank (ECB) President Mario Draghi delivered a speech this morning in which he laid out the likelihood of additional stimulus measures including rate cuts deeper into negative territory. European bond markets
Categories: Mortgage News

Mortgage Rates Stay Flat, But Risks Will Increase From Here

Mortgage Rate News - Mon, 06/17/2019 - 18:13
Mortgage rates were only modestly higher today. Most lenders were still quoting the same rates compared to Friday with the only difference being slightly higher upfront costs. This means the rate at the top of the average mortgage quote is still within striking distance of the lowest levels since September 2017. Rather than focus on the journey that has already occurred for rates, it's quickly becoming important to focus on the path ahead . Reason being: rates have generally been flat for more than 2 weeks now. This is incredibly uncommon given the pace of improvements in the several weeks before that. With the Federal Reserve releasing a policy announcement and updated forecasts on Wednesday (both hotly anticipated by financial markets), it seems clear that the sideways momentum in rates is
Categories: Mortgage News

Mortgage Rates Just Had Another Awesome Week

Mortgage Rate News - Fri, 06/14/2019 - 18:27
While we can't say that this week's best mortgage rate offerings were quite as good as last week's best, they were pretty darn close. In fact, quite a few lenders have simply been quoting the same rates for the entire 2-week period. That happens from time to time, but it never happens after rates make a strong run to the lowest levels in nearly 2 years. Seriously, I can't find any past examples of a similar turn of events. Therefore, it's safe to declare this to be yet another awesome week for rates, even though it's not an awesome week for the average mortgage originator to have much time to sleep, eat, or chill with the fam! Rather than cry for your friendly neighborhood originator, it makes more sense to add to their workload (if you haven't already). With a very important Fed announcement
Categories: Mortgage News

Mortgage Rates Continue Easing Back Toward Long-Term Lows

Mortgage Rate News - Thu, 06/13/2019 - 17:04
Mortgage rates moved lower for the 2nd straight day, which brings them back in line with Monday's levels. While these aren't quite the lowest rates of the past 2 weeks, they're much closer than they were on Tuesday morning. That means the average lender is nearly able to offer the lowest rates since September 2017! In the slightly bigger picture, underlying bond markets seem to be consolidating after the aggressive move to lower rates 2 weeks ago. In other words, if we can look past some of the recent volatility, the general trend has been sideways for nearly 2 weeks now. This is a good thing because, again, the "sideways" is happening at long-term lows for rates. All things being equal, that's a sign that the market is at least willing to see rates move even lower. Whether or not rates do
Categories: Mortgage News

Mortgage Rates Find Some Support as Stocks Cool Off

Mortgage Rate News - Wed, 06/12/2019 - 16:27
Mortgage rates moved higher over the past 2 days, but managed to find their footing today. I'll be the last person to claim interest rates and stock prices must follow one another, but at times, their relationship is the most convenient way to understand the market. Stocks had been rising last week while rates were holding at the lowest levels since September 2017. More than anything, this reflected optimism on both sides of the market surrounding potential Fed rate cuts in 2019. Last Friday provided some important insight. The hotly-anticipated jobs report came out much weaker than expected. That's the sort of thing that would certainly make traders all the more likely to expect Fed rate cuts. Indeed that was the case, but trading levels suggested the bond market had already found its maximum
Categories: Mortgage News

Mortgage Rates Move Up From Long-Term Lows

Mortgage Rate News - Mon, 06/10/2019 - 17:00
Mortgage rates had a fairly epic week last week, spending each day effectively pinned to the lowest levels since September 2017. That followed a swift move lower in the previous week and solid improvements every week since late April. Typically, we see a fairly quick bounce after dropping so rapidly to long-term lows. Last week was exceptional in that the lows managed to stick around for 5 straight days. Things may be changing today. Over the weekend, the bond market (which dictates mortgage rates and interest rates in general) digested news that Mexico tariffs are off the table for now. The initial tariff announcement was a key source of inspiration behind last week's stellar performance so it's no surprise to see rates push back in the other direction as the news is unwound. In the bigger
Categories: Mortgage News

Rates are Flat This Week and That's Awesome!

Mortgage Rate News - Thu, 06/06/2019 - 17:51
Mortgage rates didn't move much today. That's been the theme for most lenders every day this week. Rarely has an absence of change been so awesome! That's because rates also happen to be at the lowest levels since 2017. It's rare to rates make a strong move (like the one we saw last week) deep into long-term lows and then hold almost perfectly steady for 4 straight days. Usually, such opportunities prove fleeting, as they did in late March 2019 when the previous long-term lows were only available for a day and a half, depending on the lender. If you happen to see media coverage of rates today and it suggests a massive drop this week, chances are it's based on Freddie Mac's weekly rate survey. Freddie's numbers are just fine in the long run, but they can lag reality when markets are volatile
Categories: Mortgage News

Mortgage Rates Steady to Higher Depending on The Lender

Mortgage Rate News - Wed, 06/05/2019 - 17:00
Mortgage rates began the day very little changed versus yesterday's latest offerings. That meant another morning of access to the lowest rates since late 2017. As the day progressed, bond markets weakened and several lenders were forced to issue mid-day reprices (meaning slightly higher rates or upfront costs, depending on the scenario). Reprices can go both ways, but generally speaking, lenders are quicker to reprice toward higher rates/costs when bonds are weakening than they are to offer improvements when bonds are strengthening. It should be noted that different lenders are offering drastically different rates at the moment. This is a byproduct of market volatility and differences in business models. Some lenders are better able to keep pace with this volatility than others. If markets
Categories: Mortgage News

Mortgage Rates Held Mostly Steady Despite Scary Market Movement

Mortgage Rate News - Tue, 06/04/2019 - 18:11
Mortgage rates hit their best levels since late 2017 yesterday and have generally been making stellar moves for the past 2 weeks. To be fair, it's been the broader bond market (which dictates mortgage rates, among other things) that's been making the most stellar moves. Mortgages merely got pulled along for the ride. It's disconcerting and perhaps even alarming , then, to see that broader bond markets scurried back in the other direction today. Depending on the time of day, the bond market weakness (which coincides with rising rates) ranged from moderate to significant . To put it in context, 10yr Treasury yields (which tend to move in concert with mortgage rates) moved higher at the fastest pace in nearly 2 months today. With that in mind, it's nothing less than striking to consider the average
Categories: Mortgage News

Mortgage Rates Continue to Plummet

Mortgage Rate News - Mon, 06/03/2019 - 18:09
Mortgage rates dropped quickly again today, easily hitting the lowest levels since late 2017 for the average lender. The move comes in response to a surge in volatility and perhaps even a wave of panic in financial markets. Stocks have fallen somewhat swiftly as trade tensions increasingly look like an ongoing narrative as opposed to a temporary issue. The bigger story, however, is in the bond market (which is directly responsible for most interest rates, including mortgages). Relative to stocks, bonds have been undergoing a much bigger move as the market attempt to reprice its expectations for Fed rate cuts. Yes, that's CUTS with a "C" now. Up until the past few days and weeks, you were just as likely to hear about potential "hikes." But all that seems to have gone out the window, and quickly
Categories: Mortgage News

Mortgage Rates Drop Well Into the High 3's

Mortgage Rate News - Fri, 05/31/2019 - 16:56
Mortgage rates were decisively lower today, following a massive market movement on news of new tariffs to be imposed on Mexico. In general, trade wars are economically negative. They hurt stocks and help bonds. When bonds are improving, it means bond prices are rising and yields (another word for "rates") are falling. Long-story short, investors are pricing-in a new reality where trade tensions do measurable damage to the global economy. This not only forces money out of stocks and into bonds, but it also implies lower inflation and increased odds of Fed rate cuts. The specific implication for mortgage rates was quite good today. Mortgages have been lagging the moves seen in Treasury yields, for the most part. That was NOT the case today--at least for the lower portion of the rate spectrum
Categories: Mortgage News

Are Mortgage Rates Really Under 4.00%? Yes and No

Mortgage Rate News - Thu, 05/30/2019 - 16:46
Mortgage rates were mixed today, with some lenders holding steady while others offered mid-day improvements in response to strong performance in the bond market. In either case, today's loan quotes are likely to be as good as they've been since the first few weeks in 2018. But are they under 4.00%? That's the claim being made by more than a few news stories out there. Let's take a look at the underlying facts. First off, any time you see consensus among mortgage rate headlines on a Thursday morning, chances are the story is citing Freddie Mac's weekly mortgage rate survey. Today's survey has the average 30yr fixed quote dropping to 3.99% for the first time since (you guessed it) the first few weeks of 2018. But that doesn't mean anyone can go down to the corner store and pick up a 3.99% mortgage
Categories: Mortgage News

Mortgage Rates Lowest Since January 2018

Mortgage Rate News - Wed, 05/29/2019 - 17:04
Mortgage rates fell again today, just barely inching to the lowest levels since early 2018 . Keep in mind, that factoid is based on an average of multiple lenders. Some of them aren't quite back to the low rates seen at the end of March. Others had crossed that line several days ago. Either way, the actual NOTE RATE at the top of the average rate quote would be the same then and now. The EFFECTIVE RATE would be just slightly lower due to a small advantage in upfront lender costs (origination or points, depending on the lender). Relative to market sentiment at the beginning of May, the last 3 weeks have been unexpected. In other words, there was no obvious reason to expect or fear the sort of slide in stocks and yields that we've seen since then. But of course, that's just the sort of thing
Categories: Mortgage News

Mortgage Rates Are Great, But They Could Be Greater

Mortgage Rate News - Tue, 05/28/2019 - 17:52
The world of mortgage rate analysis is both simple and complicated . On a simple note, rates are near long-term lows and they'll generally continue to follow the broader market for interest rates (which is largely based on US Treasuries, domestically). On the more complex note, mortgage rates aren't directly tied to Treasuries, don't move frequently throughout the day, and can vary from lender to lender. Due to those 3 factors, we get days like today where 10yr yields are down significantly (normally a good indication that mortgage rates will be down), yet some lenders are actually offering somewhat higher rates compared to last Friday! What's up with that? Generally speaking, the lenders who are worse off today are those who were more aggressively priced on Friday. Compare today to last Wednesday
Categories: Mortgage News

Rates Are Back to Lowest Levels in More Than a Year

Mortgage Rate News - Fri, 05/24/2019 - 17:52
Mortgage rates fell again today as mortgage lenders got caught up with yesterday's market movements. Mortgage rates are based on bond market trading levels, but mortgage lenders only adjust rates once per day unless there's quite a bit of movement. Yesterday saw such movement, and in those cases, lenders typically adjust rates to reflect only part of the overall shift in markets until the shift is confirmed for a certain amount of time. As such, when bond markets began the day in similar territory to yesterday, lenders were able to bring mortgage rates even lower than yesterday. With that, the average lender is back to the lowest rates in more than a year . It should be noted that several lenders are still a bit higher than they were on March 27th and 28th of this year. Other lenders are in
Categories: Mortgage News

Mortgage Rates Drop Quickly as Market Panic Sets In

Mortgage Rate News - Thu, 05/23/2019 - 17:49
Mortgage rates dropped quickly today as global financial markets underwent a volatile shift. When money is flowing out of stocks and into bonds (as it was today) rates move lower. There are several underlying reasons for the move and it's impossible to assign a value to each of them with perfect precision. Several of the most noticeable ingredients include: ongoing trade tensions, political upheaval in Britain, and weak economic data early in the day. Even though "stock selling" can be seen as an "effect" as opposed to a "cause," it was big enough that it created additional momentum for the bond/rate market. Simply put, when that much money is flowing out of stocks, it needs a safe place to hide. That place is often the bond market. The net effect for mortgage rates hasn't been fully realized
Categories: Mortgage News

Mortgage Rates Catch a Break

Mortgage Rate News - Wed, 05/22/2019 - 17:10
Mortgage rates moved higher at a pace that was probably quicker than the average homebuyer would like yesterday . That was part of a 4 day move leading back up from the lowest levels in more than a year (or close to them, depending on the lender). That 4-day move could have easily been quite a bit longer, and it still could be, as long as we overlook today's market movement. Thankfully, it's taken rates back in a friendlier direction. At issue is the unexpected flare-up in British politics surrounding Theresa May's referendum gambit yesterday. To be fair, the gambit was unexpected, but the flare-up makes perfect sense. Long-story short, if May is ousted (and that seems likely), it creates uncertainty surrounding a major economy and financial center. It also makes a "no-deal" Brexit more likely
Categories: Mortgage News

Mortgage Rates Bounce Back

Mortgage Rate News - Tue, 05/21/2019 - 17:11
Mortgage rates had a fairly decent day yesterday as far as most lenders are concerned. A few lenders saw fit to bump rates up in the afternoon following a day of weakness in the bond market (which directly affects the rates lenders can offer). Because a majority of lenders did NOT make that mid-day adjustment, they were always likely to do so with today's first rate sheets--especially if bonds didn't improve overnight. Not only did bonds not improve today, but they weakened a bit more. This made lenders' decisions easy. With that, the average conventional 30yr fixed quote moved back up to levels last seen on May 9th and 10th. In outright terms, some loan scenarios will be an eighth of a percentage point higher in rate while others will merely be looking at a reasonably big bump in closing costs
Categories: Mortgage News

Rates Hold Near Lows, But Things Could Change Tomorrow

Mortgage Rate News - Mon, 05/20/2019 - 18:25
Mortgage rates moved microscopically higher today, depending on the lender. In terms of underlying movement in the bond market, however, rates should have risen a bit more than they did. This has to do with the timing of the bond market weakness and the amount of movement lenders typically want to see before changing their mortgage rate offerings for the day. Simply put, weaker bonds suggest higher rates, but bonds didn't weaken fast enough for most lenders to see their "re-price" threshold. All of the above means that most lenders continued to offer rates that were very close to the lowest levels in more than a year. Only a handful of days have been any better, and all of them have occurred in the past 2 months. Much of the credit for the recent drop in rates goes to the well-publicized trade
Categories: Mortgage News

Mortgage Rates End Week Near Long-Term Lows

Mortgage Rate News - Fri, 05/17/2019 - 16:04
Wednesday was the best day this week for Mortgage rates with the average lender at the lowest levels in more than a month and very close to the lowest levels in more than a year. Things changed on Thursday with rates moving up slightly. That said, Thursday would have been the best day in more than a month had it not been for Wednesday! Friday brought effectively no change to Thursday's levels, thus keeping the average lender very close to long-term lows . In fact, the average loan quote won't have changed in terms of the quoted interest rate during the past 3 days--only in terms of the upfront costs. In other words, APR would be slightly higher while the payment rate itself would be unchanged (APR factors certain upfront costs into a total cost of financing). In the bigger picture, rates have
Categories: Mortgage News