Mortgage rates appear to be trending higher as economic uncertainty prevails over the financial markets. Friday’s jobs report indicated that the labor market remains very weak. June marked the 6th consecutive month that the US economy lost jobs. However, higher commodity prices continue to raise concerns over inflationary pressures in our economy. The Fed is […]
This morning’s jobs report did show continued weakness in the jobs market. The report indicated that the US Economy lost 62,000 jobs last month. This marks the 6th straight month of contraction in the jobs market. As I explained in yesterday’s ‘rate update’, a weak jobs report is likely to help mortgage rates. However, the […]
Mortgage Rates rose modestly yesterday afternoon after the stock market rallied in the afternoon. Attention is now focused on tomorrow’s monthly jobs report. I have posted a new article on my blog explaining the importance of the monthly jobs report which you can view at this link. The bottom line is that the monthly jobs […]
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 […]