We often stress the importance of the monthly “jobs report” in trying to forecast the direction of mortgage rates. The objective of this post is to provide an explanation of why this report is so important. Let’s first have a look at what information can be found in the monthly “jobs report”. Here is a […]
Over the past two weeks the Dow Jones Industrial Average has lost approximately $316 Billion (yes with a ‘B’) in market capitalization. This weakness in the stock market has caused 30 year fixed rates to fall by .375%. If you have not yet read this blog posting on how the stock market impacts mortgage rates […]
As mortgage lenders continue to restrict their lending guidelines in response to the “subprime fallout”, it is no wonder that mortgage originators are increasing their reliance on FHA and state-sponsored first time home buyer programs to fill the void. In Oregon we have the Oregon Bond Program. This particular program is offered through the Oregon […]
The weak stock market may continue to help mortgage rates move lower. However, a weakening dollar may raise inflationary concerns. The European Union reported the highest year-over-year inflation reading in 16 years this morning. How can European Inflation impact mortgage rates in the US? In order to combat inflation the EU will have to begin […]
Fannie Mae released an announcement yesterday which indicated they are tightening some of their guidelines to qualify for a new mortgage. The reason this is important is because Fannie Mae dictates underwriting guidelines for virtually all mortgage lenders. There is one guideline change within this announcement that we feel will be impactful and thought we […]
This morning’s Personal Consumption Expenditure Report (PCE) showed that core inflation increased in line with analysts’ expectations. This is good news for mortgage rates because there has been a lot of concern over growing price pressures in our economy (inflation is the primary factor that drives mortgage rates). With the stock market indexes losing value, […]
Some mortgage programs saw improvements to rates this morning. As expected the Fed kept rates unchanged yesterday afternoon. Watch today’s you tube video to better understand what they said and how it may impact mortgage rates. Attention will now be focused on tomorrow’s Personal Consumption Expenditure (PCE) report. This report includes the Fed’s favorite gauge […]
Rates are higher this morning. The big news event of the day will take place today at 2:15 EST when the Fed gives their post-meeting statement. We already know that the Fed is likely to leave rates unchanged. What is more important is how they craft their language. Watch today’s you tube video to understand […]
Mortgage-backed bonds are trading higher this morning which has helped rates remain unchanged from yesterday despite a sell-off in the afternoon. The bond market is benefitting from a weak stock market. Over the past week I’ve referenced the impact that the stock market can have on mortgage rates. For a detailed explanation please search for […]
Weakness in the stock market has helped rates stabilize. The Dow Jones Industrial Average is back below 12,000 as credit related concerns continue. If weakness in the stock market persists we could see mortgage rates benefit. We don’t expect a lot to change with regard to interest rates until Wednesday when the Fed is scheduled […]