I sat in on a real estate sales meeting Monday morning. In the meeting there was a discussion about buyer psychology and how it’s been battered with fear. One of the realtors brought up a great question to ask when prospective buyers mention that they’ve read/ heard the housing market is bad, “Bad for who […]
Mortgage-backed bonds managed to rally yesterday afternoon bouncing off the 200-day moving average (blue line). This is good news for interest rates. The 30 year fixed rate is still hovering @ 6.125% but we may see that drop to 6.00% as more investors issue their morning rate sheets. Watch today’s you tube video for a […]
Continued uncertainty about the value of mortgage-backed bonds has pressured rates higher over the previous few days. This morning the Fed stepped in to provide additional liquidity for financial institutions to buy mortgage-backed securities by increasing their “Term Securities Lending Facility”. This was a good sign but may not be enough to save mortgage-backed bonds […]
Last week the Federal Housing Administration (FHA) increased the loan limits for FHA loan products. It’s important to understand that this only applies to FHA loans and does not apply to conforming loan limits although the methodology for increasing FHA loan limits is the same. In either case the maximum loan limit is 125% of […]
Thankfully mortgage-backed bonds managed to close above the 200-day moving average on Friday afternoon. This morning mortgage-backed bonds have come under selling pressure. Watch today’s you tube video to find out what is impacting the bond market…… Search my February blog postings for an article-“Why Fed Rate Cuts Do Not Lower Mortgage Rates” for an […]
I got this email from an industry insider today. Although the email string doesn’t indicate who wrote the email apparently it is from a Fannie Mae official who tracks the investment communities’ demand for mortgage-backed bonds. Why is this important? This email explains in detail who the typical buyers are for mortgage-backed bonds and why […]
The volatility in this marketplace continues to be unprecedented and makes it extremely difficult to predict what will happen moving forward. Yesterday we recommended a floating position because we felt rates would improve due to mortgage-backed bonds possibly bouncing higher off the 200-day moving average & that the jobs report would be weak this morning. […]
This is an excellent explanation of what a margin call is and why it caused rates to rise yesterday written by Barry Habib, CEO of Mortgage Market Guide: So what happened yesterday? As we all know – only fools think that mortgage rates are based on the 10-year Note – many of them in the […]
For those of us familiar with the real estate sales process we know that it is very common for buyers to request that the seller pay all or a portion of their settlement charges. This reduces the amount of cash they have to bring to closing. Especially for first-time homebuyers who often do not have […]
We continue to track technical trading patterns today. After falling below the 100-day moving average mortgage backed bonds fell sharply to the 200-day moving average (indicated by the blue line) as we expected. If you’ll remember mortgage rates move inversely with the price of mortgage-backed bonds so as a result of the sell-off yesterday (indicated […]