mortgage market

The Week In Review (November 19, 2007) : What To Watch For

November 19, 2007

In a holiday-shortened week with no major economic data releases, expect worries about the credit markets and speculation about holiday shopping to take center stage. Last week was a mixed bag for the economy and mortgage markets responded in kind.  Rates were relatively unchanged. The news started with Wednesday’s Retail Sales report.  In showing a […]

Read the full article →

It’s Not Your Imagination : Getting A Home Loan Is More Challenging For Everyone

November 7, 2007

If it feels like mortgage approvals are harder to come by than in years past, that’s because it is. And we’re not just talking about sub-prime mortgages (for which the market has nearly vanished in just 12 months). According to a story on Marketwatch, mortgage guidelines are more challenging for everyone to meet — gold-star […]

Read the full article →

It’s A Terrific Time To Revisit Your Mortgage Rate

November 2, 2007

If you bought your home in 2007 and your mortgage is a conforming home loan, you may be able to take advantage of  the current mortgage market conditions and lower your mortgage rate. As of this morning, mortgage rates are near their lowest levels of the year. Of course, not every conforming borrower is eligible. […]

Read the full article →

Retail Sales Data Gives Mortgage Markets Something To Chew On

October 15, 2007

Until this morning, mortgage markets had been somewhat dormant over the course of the week.  There was no new data for traders to chew, digest and/or spit out.  Mortgage rates sat flat because of it. Then, at 8:30 A.M. ET, the Commerce Department released Retail Sales data for September.  Mortgage rates are headed higher this morning on […]

Read the full article →

Jumbo Mortgage Rates Shed Some Of Their Risk, Rates Fall

October 11, 2007

As a sign that some normalcy is returning to mortgage markets, the premium attached to jumbo mortgage rates is getting smaller. A “jumbo”-sized loan is one that exceeds $417,000 on a single-family residence, among other criteria. Conforming 30-year fixed rate mortgages and jumbo 30-year fixed rate mortgages tend to move in the same direction over […]

Read the full article →

Making A Choice Of Mortgage Products Is Easier Today Than Most Days

October 11, 2007

In another sign that mortgage markets are a bit unpredictable lately, this morning’s mortgage rates are virtually identical for conforming fixed rate mortgages and conforming adjustable rate mortgages. This is an extremely uncommon market condition; usually, adjustable rate mortgages carry lower rates over their initial fixed rate period (i.e. 3 years, 5 years, 7 years) […]

Read the full article →

An Appetite For Jumbo Loans Returns

September 5, 2007

Yesterday was a rather drab day in mortgage circles — not much happened and mortgage rates idled.  The bigger story was how liquidity appears to be slowly returning to some areas of the beaten-down mortgage market. Specifically, liquidity is returning to prime, fixed-rate, full documentation jumbo loans and pricing appears to be improving (slightly). The […]

Read the full article →

The Week In Review (August 6, 2007) : What To Watch For

August 6, 2007

In a week in which several high-profile mortgage lenders closed their doors, not all news was bad. Mortgages rates for home loans bought by the quasi-government groups Fannie Mae and Freddie Mac actually dropped a bit. If you only watched the news, or market commentary on CNBC, though, you likely have the wrong idea about […]

Read the full article →

Three Reasons Why Mortgage Rates Are Higher This Morning

July 5, 2007

Mortgage markets are making like last night’s fireworks, exploding in the sky with a bang. There are three main factors pushing rates higher today: Bank of England raised their interest rates by 0.25% and foreshadowed future increases European Central Bank Chairman Jean-Claude Trichet said that inflation is “likely to rise again significantly towards the end […]

Read the full article →

The Fed Starts Its Two-Day Meeting

June 27, 2007

The mortgage markets officially enter “Wait-and-See” mode beginning today as the Federal Open Market Committee begins their two-day meeting. The importance of the FOMC’s meeting to mortgage markets is all in the words of the committee as opposed to their actions (or lack thereof). After all, the group has not “done anything” in a year […]

Read the full article →

The Week In Review (June 25, 2007) : What To Watch For

June 25, 2007

For the first week in a long while, mortgage rates ended the week better than how they started. As we talked about last week, when there are no major data releases, the markets tend to move on momentum and psychology.  That’s precisely what pushed mortgage rates lower over the past five days. This week, though, […]

Read the full article →

Proof That Mortgage Bonds Are A Global Market

June 12, 2007

If you ever wanted proof that mortgage rates react to global events, the past four days are it. Worldwide, investors are shunning the United States mortgage market in search of higher returns elsewhere. The more they sell, the worse mortgage rates get. The latest catalyst for extra supply: speculation about a Bank of Japan interest […]

Read the full article →

The Five Words Spoken By Ben Bernanke That Rattled Mortgage Markets

June 6, 2007

Behold the power of the English language. With just five words, Federal Reserve Chairman Ben Bernanke rattled markets yesterday. In discussing how housing has slumped (and may continue to slump), Bernanke cited that weakness in the sector should not hold the rest of the economy back. This is departure from earlier this year.  In Q1, […]

Read the full article →

The Week In Review (June 4, 2007) : What To Watch For

June 4, 2007

Another week, another vicious rise in mortgage rates.  There just wasn’t enough “bad” news to reverse the market’s recent trend to the upside. There were three notable pieces of news from last week: The Fed’s May meeting minutes revealed a genuine concern that inflation is not slowing as anticipated The employment report showed that employers […]

Read the full article →

How Lenders Protect Against Losses When Mortgage Markets Deteriorate

May 23, 2007

The graph at right shows the path of mortgage rates in May.  The rate run-up continued yesterday. After a fairly tame start, yesterday’s action rapidly slipped away from mortgage rate shoppers beginning at 12:00 P.M. ET. Many lenders responded by invoking their right to a mid-day reprice as well, with some adding as much as 0.25% […]

Read the full article →

The Week In Review (May 14, 2007) : What To Watch For

May 14, 2007

Last week in the mortgage markets was thick with hype and thin with action. Whenever the Fed meets, there is potential for wild swings in mortgage rates.  And, although the Fed doesn’t control mortgage rates, it’s views on inflation and the economy carry tremendous weight with traders, with economists, with banks, and with governments across […]

Read the full article →

Today Is FOMC Day : What Will They Do/Say?

May 9, 2007

The Federal Open Market Committee meets today and markets will be hanging on their every word. There is virtually no chance that the Fed will change the Fed Funds Rate from its current 5.250% level, so its the Fed’s press release that will get all of the attention. We’ll disect the message in tomorrow’s blog […]

Read the full article →

Jobs Report Is The 800 Pound Gorilla In The Room

May 1, 2007

There’s a palpable uneasiness in mortgage markets right now and Friday’s payroll report looms large. Remember: it’s not the actual data that matters — it’s how close the data is to its expected levels. All week, traders have been jockeying for position based on a projected 100,000 new jobs created and if the number is […]

Read the full article →

The Week In Review (April 30, 2007) : What To Watch For

April 30, 2007

Last week, a ranking Fed official delivered a “wait-and-see” speech on inflation and that roiled the mortgage markets plenty. After sitting in a tight range for Monday through Wednesday, rates exploded higher Thursday as markets abruptly changed their expectations of growth for the rest of 2007. Despite weak housing numbers, employment and consumer spending figures […]

Read the full article →

What’s All That Yellen About?

April 27, 2007

So much for market calm. The mortgage market tanked yesterday when, in response to conflicting data about growth and inflation, San Francisco Fed President Janet Yellen said “watchful waiting” is the Fed’s likely next step. This surprised markets because most expect the Fed to lower the Fed Funds Rate within the next few months. The […]

Read the full article →

← Previous Entries

Next Entries →