Good news and bad news from the U.S. yield curve
Everyone is waiting on the recession or for more rate cuts. Is it going happen? Does it really matter if it does? How will we know we are in recession? Even if they drop the rate, will that mean lower rates for the consumer? A drop in the 10-year Treasury yield below...
Four questions to ask yourself before refinancing
Refinancing your home might be something you are considering. After all, interest rates are generally low right now and you may be able to swap out your old, higher interest rate mortgage for a new one with lower rates. But will that put you in a better financial...
Timing the market is tough…you may want to refinance now
Is it the right time to refinance? Some homeowners who try to time the market in order to get the best rate can end up saving a lot of money. However, many of them end up kicking themselves for years to come because they missed the boat. Conventional wisdom says rates...
January 2020 rate outlook is trending towards lower rates than in 2019
After dropping more than a full point from the end of October in 2018 to the end of October in 2019, mortgage rates barely changed during November and December. Several factors have affected rates over the past year, including economic data, Fed policy, and the trade...
Inflation is another factor that goes into long term rates. If inflation goes up so does the mortgage rates.
There are rumors that our Fed is considering an idea to abandon its present 2% target rate for inflation in favor of a floating target where inflation would be allowed to rise above 2% for some time before considering hiking rates. This comes with two...
Increased Optimism on Trade is causing rates to increase
The trade negotiations with China dominated the economic news this week. Unexpected signs of progress in reaching a deal were unfavorable for mortgage rates. Stronger than expected economic data also was negative, and rates climbed to the highest levels since late...
Home Sales Slipped in September Keeping Mortgage Rates Unchanged
The most significant economic data released this week came from the housing sector. In September, sales of previously owned (existing) homes, which make up about 90% of the market, fell a little more than expected from August but still were 4% higher than a year ago....
Want to know where the rates are headed? You might want to look at the stock market.
The stock market does not directly influence rates, but is a very good indicator on where rates may be going. I have mentioned in the past that bad news in the economy normally means rates will be decreasing. This is not always true, but most of the time it is. How...
Perfect storm for lower rates
Here comes the perfect storm for rates. You may want to get your refinance application in today. Or lock your purchase loans as this may be a small window that may only last for the next month or so. Remember: the rates are priced for what we think is going to...
Stagflation concerns making it difficult for the federal reserve to make a rate cut in October
There is a lot going on in the markets these days. Stagflation concerns are making it difficult for the federal reserve to make an additional rate cut in October. Some say it is about a 55% chance they cut rates. Recently, conventional thinking had it at a 99%...