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Mortgage News Letter


Mortgage News Daily

Rates Catch a Break to Remain Near Long-Term Lows
Mon, 24 Jun 2019 20:58:43 GMT

Mortgage rates were generally flat today, depending on the lender. Some were noticeably better while others were a hair worse. In both cases, rates are very close to the lowest levels since late 2016. Changes from Friday would most likely be measured in terms of upfront costs as opposed to differences in the quoted "note rate" itself (the rate most people are talking about when they talk about mortgage rates). Upfront costs simply allow for smaller fine-tuning adjustments when the market doesn't move enough for lenders to change rate quotes by the customary 0.125%. Holding steady today is a major victory given the landscape at the end of last week. At the time, the underlying bond market (which dictates rates) was in the process of bouncing back into weaker territory following a stronger reaction ...read more

Mortgage Rates Slightly Higher; More Volatility on The Horizon
Fri, 21 Jun 2019 22:59:18 GMT

Mortgage rates have had an impressive run --the best since 2011, in fact, when it comes to total peak to trough movement. That winning streak might not even be over, but every time rates bounce recently--even if only slightly--it's cause for concern. For one of a few potential reasons, these big moves in rates only last so long. This one is big enough and long enough that it makes sense to keep an eye out for the big shift. In fact, if you're in the process of buying or refinancing (or if you work in the mortgage/housing market) it makes sense to keep an eye out for temporary shifts! That's the area of greatest concern currently. Following this week's Fed meeting, rates extended their fall to the lowest levels since November 2016. But since then, the underlying bond market has bounced in such ...read more

Mortgage Rates Hit New Long-Term Lows, Then Bounce
Thu, 20 Jun 2019 22:40:45 GMT

Mortgage rates plunged today as the bond market extended its positive reaction to yesterday's Fed announcement. The Fed doesn't set mortgage rates, but the market's expectation of Fed rate-setting policy has a major impact. In other words, because the Fed generally confirmed the market's suspicion that rate cuts could be warranted in 2019, traders were willing to push rates even lower than they already had in advance of Fed day. Some lenders had already adjusted rate sheets yesterday afternoon to account for the bond market improvements that were already in place. In those cases, the surge to lower rates wasn't quite as epic. But for lenders who kept the same rates intact all day yesterday, there was a huge shift this morning, with the average lender improving by an entire eighth of a percent ...read more

Mortgage Rates Mixed Despite Positive Reaction to Fed
Wed, 19 Jun 2019 22:49:42 GMT

Mortgage rates reacted favorably to today's Federal Reserve announcement and press conference--today's key events. But that doesn't mean every lender is in better shape than yesterday. The morning hours saw the bond market (which dictates rates) at weaker levels. Weaker bonds = higher rates, all other thing being equal. It wasn't until the 2pm Fed announcement that bonds began to improve, thus opening the window for mortgage lenders to issue new rates. Unfortunately, some lenders are less prone to mid-day reprices than others. There's also always a healthy fear of volatility in the bond market after the Fed announcement, even if bonds start out moving in a friendly direction. On a final note, the press conference with Fed Chair Powell didn't start until 2:30pm. By the time he was done answering ...read more

Mortgage Rates Enjoy Surprise Drop Ahead of Fed Day
Tue, 18 Jun 2019 21:33:26 GMT

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 ...read more