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Mortgage News Letter


Mortgage News Daily

Highest Rates in a Week After Surprisingly Strong Economic Reports
Thu, 16 Sep 2021 20:25:02 GMT

Mortgage rates moved higher again today, bringing the average lender to the worst levels since last Thursday. There are a few exceptions to that due to recent regulatory changes. Specifically, many lenders made improvements to loans for 2nd homes and investment properties. That's the short version. If you need to background, here's the long version . The average loan scenario was unaffected by the regulatory changes and thus was free to react to the day's bond market weakness. Bonds responded immediately to a pair of economic reports that came in much stronger than expected this morning. In general, stronger data pushes bond prices lower and yields (aka "rates") higher. The culprits in this case were the Retail Sales data for August and the Philadelphia Fed's Manufacturing Outlook Survey from ...read more

Mortgage Rates Start Stronger But Moved Higher During The Day
Wed, 15 Sep 2021 20:47:34 GMT

Mortgage rates began the day with promise. Actually, it was the underlying bond market (which largely dictates mortgage rates) was sending promising signals by apparently building on the bigger improvements seen on Tuesday. This is exactly what mortgage lenders needed in order to feel comfortable setting rates at even lower levels. Unfortunately , not long after the day began, bonds started losing ground. For more than a few lenders, the intraday losses were enough to prompt mid-day reprices (meaning that the initially-offered mortgage rates were replaced by slightly weaker terms. A mid-day reprice may or may not be a big deal depending on your perspective. In most cases, the "note rate" for your mortgage quote will remain the same and only the upfront costs will change. In even less threatening ...read more

Mortgage Rates Falling Back in Line With Best Recent Levels
Tue, 14 Sep 2021 20:13:36 GMT

Mortgage rates started the day modestly lower , but many lenders ended up offering mid-day improvements in response to market conditions. When it comes to rates, the bond market sets the tone. Bonds can move for a variety of reasons, but economic data is one of the quintessential inputs. If the incoming data suggests a hotter economy or higher inflation, rates tend to rise . The opposite is also true (weaker data = lower rates) as was the case today. The Bureau of Labor Statistics released the Consumer Price Index for the month of August today. This is one of the more widely-followed inflation reports. As such, rates improved when the report suggested inflation decelerated by more than expected. Rates didn't drop too much, but they're nonetheless back in line with their lower recent levels ...read more

Mortgage Rates Flat to Start The Week
Mon, 13 Sep 2021 20:19:39 GMT

Mortgage rates were fairly flat to start the new week. This leaves the average lender in the high 2% range for top tier conventional 30yr fixed scenarios (i.e. 20%+ equity, 740+ FICO, owner-occupied, single-family, detached homes). This is just a bit higher than the all-time lows seen at the beginning of the year when rates were in the mid-2% range. There's disagreement about where we go from here. The easy answer--and probably the more common one--is that rates will gradually move higher as we continue to distance ourselves from the worst days of the pandemic. But that answer actually implies its own counterpoint: a lot depends on covid! Specifically, if the delta-driven case count spike doesn't quietly subside, and more importantly, if cases accelerate into the fall months, rates could remain ...read more

Rate Reckoning Draws Closer
Fri, 10 Sep 2021 23:53:23 GMT

Rates are dictated by the bond market and bonds are flashing a warning sign about volatility on the horizon. In other words, rates look like they're ready to make a bigger move in the near future, for better or worse. This isn't readily apparent at first glance--especially when it comes to... ...read more