Category Archives: Mortgage Rate Trends and Analysis

Commentary on mortgage rate trends

Mortgage Rates Ease Up

 

 

Freddie Mac announced today that fixed mortgage rates backed off this week from a two-year high.mortgage rates Lenders are now offering the 30-year home loan at an average of 4.51% compared with 4.58% just a week ago.

The 15-year fixed-rate mortgage averaged 3.54%, It is down from 3.60%. Starting interest rates for popular types of variable-rate loans were up slightly.

 

August was as good as a month has been lately for mortgage rates. With this summer proving the volatility of the mortgage rates, it now seems that they have eased off.

 

Vice President and Chief Economist of Freddie Mac, Frank Nothaft fully recognizes the fluctuation we have seen and that the housing market needs to be watched closely.

 

“The Fed is monitoring the housing market closely after the run up in mortgage rates over the past few months. The 13.4 percent drop in new home sales in July led financial markets to speculate whether the Fed might delay reducing its bond purchases and allowed long-term bond yields and fixed mortgage rates to decline over the week.”

 

While the rates have plateaued and even dropped slightly it is not likely that the drop in rate will continue but in the mean time it will give on the fence “refinancers” a few more moments to make their decision.

 

Good News! Mortgage Rates are Going up!

Good News About Rising Rates

moneygraph

You’ve probably heard all the rationalizations, but none of them satisfy. It doesn’t if rates go up because at least for a while they’ll still be pretty low, maybe even as low as when people lived in boxcars and sang hobo songs to each other during the Depression.  Moreover, even in the unlikely event that mortgage rates rise as much as one whole percentage point, it won’t cost you any more each month than a family night out at Dave & Busters.  

Government Incompetence Extending Low Rates

For all the criticism leveled at Congress over its inability to come to any kind of lasting fiscal agreement, there may in fact be a positive side to the story that goes under-reported.  Don’t get me wrong I am not a cheerleader for low mortgage rates above all else.  In fact, I would gladly cheer higher rates in exchange for a stronger economy that is producing jobs and increasing incomes. Yet, the benefit of low mortgage rates, as a tool for consumers to repair damaged financial positions is powerful and is a result of the political dysfunction in Washington above all else.

To speak with one of our licensed mortgage professionals to find out how much you could be saving, click here or contact us today at 866-896-5826.

Mortgage Rates: Ground Hog Days?

I know Ground Hog Day doesn’t occur for several weeks but today is shaping up to remind me of the 1993 Comedy by the same name that starred Bill Murray and Andie McDowell.  As you film aficionados recall, a TV weatherman played by Murray visits Punxsutawney, Pennsylvania to cover the annual Ground Hog Day spectacle.  According to legend, if Punxsutawney Phil sees his shadow, there will be six more weeks of winter weather. If he does not see his shadow, there will be an early spring.  In the movie Bill Murray’s character somehow gets caught in a time loop and every day becomes an exact replica of the day before…in his case…Ground Hog Day.  While today in the markets is not an exact replica of yesterday and the day before, it is a little too close for comfort for those wanting mortgage rates to remain low.

To speak with one of our licensed mortgage professionals to find out how much you could be saving, click here or contact us today at 866-896-5826.

Foreign Markets Push Mortgage Rates Higher

Thursdays are usually the day each week that we focus on the job market.  Each Thursday at 8:30 AM ET the US Department of Labor releases the results of its survey of new applicants for first-time state unemployment benefits.  Today was no different.  The report was issued and it showed some surprising results, yet the markets have completely ignored them.  Why?  The answer is economic news about the two other major economic powers: China and the European Union.

To speak with one of our licensed mortgage professionals to find out how much you could be saving, click here or contact us today at 866-896-5826.

Traders Push Market, Rates Drop

Last week was filled with intrigue and a substantial amount of economic data.  This week is filled with speculation and an almost complete lack of economic data.  Both environments are good breeding grounds for volatility in the markets and for interest rates. Nevertheless, it is always important to remember that traders want to see activity and trends no matter how well supported by facts since they make money on the trades of investment products rather than the direction of the products price movements.

To speak with one of our licensed mortgage professionals to find out how much you could be saving, click here or contact us today at 866-896-5826.

Mortgage Rates: An Unexpected Jolt

When I was 14 I had the unfortunate experience of being near where a bolt of lightning hit a tree.  I wasn’t standing under the tree mind you, I was smarter than that.  I was inside a cabin lying on the bare metal springs of a bunk bead on the first day of camp.  The unfortunate proximity and position resulted in a brief (and bumpy) experience of human flight.  Yesterday mortgage rates, while minding their own business seemingly out of the storm, received a jolt that sent them flying.  This jolt came from the usually tame minutes of the previous meeting of the Federal Reserve’s Open Market Committee.

To speak with one of our licensed mortgage professionals to find out how much you could be saving, click here or contact us today at 866-896-5826.

Mortgage Rates: Now What?

Well the most written about topic of the last six months in this space has been the fiscal cliff and its impact on mortgage rates.  Now that the imminent drop has been averted, what does it mean for the direction of mortgage rates?  The truth is that of all the scenarios I have speculated about the deal actually passed was not one of them.

To speak with one of our licensed mortgage professionals to find out how much you could be saving, click here or contact us today at 866-896-5826.