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Mortgage News Letter

Mortgage News Daily

Mortgage Rates Sideways to Slightly Higher Despite Stock Rout
Fri, 23 Mar 2018 21:08:54 GMT

Mortgage rates were just barely higher in many cases today, although underlying bond markets recovered enough ground by the afternoon to suggest Monday's rates will recoup those losses. The only catch is that other factors can have an effect on bonds between now and then. If bond markets are weaker by Monday morning, this afternoon's strength will be overshadowed. Bottom line here: rates will start Monday with a very slight advantage "all things being equal." Incidentally, the reason we don't see this advantage today is that the bond market gains were small enough and happened late enough in the day that mortgage lenders didn't update their rate sheets. The source of inspiration for the aforementioned bond market strength was a much bigger move in stocks. The latter are generally freaking out more

Mortgage Rates Back at This Week's Lows
Thu, 22 Mar 2018 21:38:04 GMT

Mortgage rates continued lower today on a combination of global reaction to yesterday's Fed Announcement and apprehension over new tariffs on China. The Fed Announcement was positive due to Jerome Powell's press conference--an event that happens late enough in the day that overseas markets don't really have a chance to react. Because of that, domestic markets sometimes hold back a little until they can feel out the global reaction. In other words, rates were pretty sure they were headed even lower yesterday afternoon, but they wanted to see how the rest of the world felt about it. Turns out, everyone felt pretty good about it, thus delivering the first ingredient in today's improvement. The tariff and "trade war" narrative was the 2nd ingredient, but it was a bigger deal for stocks, which ultimately more

Mortgage Rates Higher, Then Lower After Fed Announcement
Wed, 21 Mar 2018 22:07:16 GMT

Mortgage rates rose to new 4-year highs this morning as lenders took a defensive stance ahead of the afternoon's Fed Announcement. The caution proved to be warranted, at least at first, as bond markets reacted negatively to the first phase of Fed-related information. Notably, the Fed Announcement itself wasn't the issue . If anything, it was moderately friendly for rates. Instead, it was the Fed's rate hike outlook (released concurrently with the policy announcement) that did the damage. But again, we're talking about underlying bond markets here. Lenders' rate sheets already reflected that damage preemptively. When new Fed Chair Jerome Powell began his press conference half an hour later, bond markets (which underlie rates) began to improve. Just over an hour after the initial drama, bonds more

Mortgage Rates Highest in a Week Ahead of Fed
Tue, 20 Mar 2018 21:07:51 GMT

Mortgage rates rose to the highest levels in more than a week today, but that's the most dramatic way to put it. In terms of outright movement, today was fairly average. It only earns the "highest in a week" distinction due to the incredibly flat trend that persisted from Tuesday through yesterday afternoon. More simply put, most borrowers would still be quoted the same rate as yesterday with the only difference being slightly higher upfront costs (or lower upfront credit, depending on the scenario). All the recent stability in rates begs the question: what might come along to shake things up again? Enter tomorrow's policy announcement from the Federal Reserve (the Fed) . While the Fed doesn't directly dictate mortgage rates or even longer term rates like US Treasury yields, the Fed Funds Rate more

Mortgage Rates Maintain Flat Trajectory Ahead of Fed
Mon, 19 Mar 2018 20:43:23 GMT

Mortgage rates have been on a tear recently , moving sideways with reckless abandon. Since the middle of February, the "effective rate" (based on actual rate sheet offerings and upfront costs) has held inside a narrow range of 4.52% and 4.58%. This lies in stark contrast to the persistent move higher during the first month and a half of 2018 which saw the same effective rate rise from roughly 4.0% into the 4.5% range. When rates are as flat as they are on the approach to a key market event like this Wednesday's Fed announcement. We often see a break in that narrow range after the key event. For now, there's no reason to believe Wednesday WON'T be such a day this time around. Even if Wednesday turns out to be a dud in terms of its impact on rates, it's always safest to plan for the risk (or more