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Mortgage News Letter

Mortgage News Daily

Mortgage Rates Continue Pushing Recent Highs
Mon, 18 Sep 2017 20:49:33 GMT

Mortgage rates resumed their recent uptrend today, after taking a quick break to end the week last Friday. The result is another push up to the highest levels in just over 3 weeks. The average scenario is being quoted rates that are about an eighth of a point higher compared to the lows seen in early September. The most prevalent top-tier conventional 30yr fixed rates still range from 3.875% to 4.0%, but the latter is increasingly in the spotlight. Context is important when it comes to this recent rate spike. The market movement that preceded it was arguably "too good," with rates benefiting from an unusual combination of geopolitical risk surrounding North Korea and event risk surrounding Hurricane's Harvey and Irma. It's not that markets responded to those events in unexpected ways--simply more

Mortgage Rates Stabilize Ahead of Next Week's Big Fed Announcement
Fri, 15 Sep 2017 21:09:26 GMT

Mortgage rates were steady to slightly lower on average today, confirming the end of a somewhat abrupt correction from last week's 2017 lows. In other words, rates rose quickly during the first days of the week and spent the last 3 days leveling off. To put "abrupt" in context and reiterate yesterday's thoughts, the worst case scenario would be an eighth of a percentage point higher in rate from last week. That's $14/month on a $200k loan. We've certainly seen worse weeks day, but only 2 of them were in 2017. The flat momentum at the end of this week isn't too likely to stick around next week. The Fed will (probably) make a landmark announcement that confirms the start of its balance sheet reduction efforts. This means slightly less bond-buying each month, and could put upward pressure on rates more

Mortgage Rates at 3-Week Highs
Thu, 14 Sep 2017 21:09:55 GMT

Mortgage rates moved higher today, despite resilience in underlying bond markets. If you were to ask bonds, they'd vote for rates remaining flat--well, sort of. There is a timing issue that I brought to your attention yesterday where mortgage lenders had yet to adjust for yesterday afternoon's bond market weakness (weaker bonds = higher rates) and were thus more likely to start today with higher rates, all other things being equal. That's exactly what happened. And while it does mean that rates are higher than they were yesterday, we're actually seeing some supportive cues in bond market for the first time all week. Specifically, bonds have held fairly steady today--something they've had a hard time with recently. It's early to say for sure, but this could be the first sign that this week's more

Worst 2 Days For Rates Since June
Tue, 12 Sep 2017 20:42:05 GMT

Mortgage rates continued higher at a reasonably abrupt pace today as last week's themes have been completely reversed. What themes are those? Generally speaking, markets were undergoing a risk-aversion trade given the rising geopolitical tension surrounding North Korea and the economic uncertainty associated with back-to-back hurricanes. Risk aversion tends to take the form of investors seeking safer haven assets like bonds at the expense of higher growth potential assets like stocks. Indeed, stocks had stumbled sideways to slightly lower last week while bond prices rose (higher bond prices = lower rates). Now that dynamic is reversing with stocks breaking to new all-time highs while bond prices move lower (lower bond prices = higher rates). In the bigger picture, the damage is still far from more

Mortgage Rates Jolted Higher, Relatively
Mon, 11 Sep 2017 21:33:25 GMT

Mortgage rates finally had a bad day , but everything's relative. This sort of bad day leaves the average lender quoting rates that would have been the best of 2017 any other time before last week. It's only when compared to last week that we'd consider them to be moderately higher. How much higher are we talking about? Let's put it this way : most borrowers will still be quoted the same interest rates seen on Friday with the weakness being seen in the form of slightly higher upfront costs. In the worst cases, the cost change could be just over 0.3% of the loan amount, or $300 for every $100,000 borrowed. The alternative would be to move up an eighth of a point in rate and pay lower upfront costs (or potentially get a lender credit, depending on the scenario). As far as the motivation for the more