There is no new economic data scheduled for release today. At 2PM EST the Fed will release the minutes from their April 30th meeting. Sometimes this event can draw some reaction in the financial markets. In the absence of any significant financial news we will be watching the stock market and technical trading patterns for […]
We mentioned in yesterday’s rate update that stocks may come under selling pressure because of technical trading patterns. Indeed that is happening this morning which is supporting mortgage-backed bond prices. Rates are modestly lower. The technical trading picture for mortgage-backed bonds is complicated. We are going to recommend a locking stance for individuals who want […]
If you’ve been a consistent reader of ‘rate update’ or this blog you know that inflation expectations are the primary factor for driving mortgage rates. When expectations of inflation increase it causes rates to rise and vice versa. There are two articles published this morning which give contradictory forecasts for inflation. It just goes to […]
A HELOC is a line of credit much like a credit card that is secured against the equity in a home. These are most often originated after a person has owned a home but can also be originated as a part of a purchase transaction. HELOCʼs have extremely flexible terms and is an excellent financial […]
There is not much in the way of economic data scheduled to be released this week so we’ll be watching technical trading patterns and the stock market for clues on the direction of mortgage rates. Stocks are currently trading up against technical resistance. Should the stock market reverse from recent highs we could see mortgage […]
Mortgage rates have improved modestly from yesterday’s levels thanks to the technical support. Bond prices have now regained the levels they reached a week ago today. We are shifting our outlook to a neutral focus after being in a floating stance the past few days. Current Outlook: neutral
Mortgage-backed bonds have found technical trading support at the 200-day moving average (blue line in the chart below). After rates increased by .25%-.375% over the previous four trading days it looks like bond prices may rise helping push rates back down. Watch today’s you tube video for explanation about this chart. Current Outlook: floating
Mortgage-rates have now increased by .25%-.375% since we shifted our outlook to locking on Friday, May 9th. The cause of the rate increase has been strength in the stock market and worse than expected inflation data. However, this morning’s Consumer Price Index (CPI) report may help rates reverse course. The monthly report which is an […]
This morning’s monthly retail sales report issued by the commerce department is raising concern over inflation. Watch today’s you tube video to learn what the report showed. Here is a link to a blog posting explaining the relationship between inflation and mortgage rates. Current Outlook: locking
What causes mortgage rates to go up or down? How come one day 30-year fixed rates are 6.00% and the next they’re 6.125%? For many people the vision of a boardroom full of cigar smoking bankers comes to mind when contemplating this question. Or, many believe that the Federal Reserve Bank holds ultimate control with […]