Mortgage News

According to the National Association of Home Builders, builders emphasize the scarcity of listings in the resale market, which grants them a significant advantage. Despite national average interest rates exceeding 7%, prospective buyers exhibit a strong preference for new homes.

Just a friendly reminder, if your mortgage rate is 6.5%, your monthly payment will be 30% higher compared to the same mortgage at a rate of 3.5%. However, if the rate is 5.0%, your payment will only be 15% higher.

It’s Thursday, which means that tomorrow is Friday heading into the three day weekend.

The Feds have put themselves in an untenable position. With a recession looming and inevitable, they are stuck. If they cut rates, it will help the banking sector, specifically the regional banks, making the recession less painful.

Oil prices are dollar dependent so if the Feds cut rates too much, oil prices move higher. Oil is holding around $73/barrel up just a bit after the Saudi Energy Minister comment to “watch out”.

This graph is the last month, but take a look at the second graph spanning the last 12 months.

We have entered a lull in the bond market ahead of Memorial Day weekend. No key reports or events except for the debt ceiling ordeal.

We are waiting for rate-friendly data as we are seeing the rates inch higher last week and into this week.

Have you ever wondered what all those numbers on Oil cans mean? Have no fear I am here to help.

It’s Tuesday Morning, take on the day and I will see you tomorrow morning.

We are in a conundrum. Supply and Demand for Mortgage bonds are the issue. The FDIC who assumed $114B in Treasuries after SVB and Signature bank went under and Banks are selling their Bonds in an attempt to raise capital for depositors. Those depositors are taking their money and investing it in better options.

In 2021 the opposite happened. Inflation was moving higher causing rates to move higher, but rates did not. The reason was the FED was doing the lion share of buying of MBS – Mortgage Backed Securities and Treasuries.

We just need to weather the storm. It’s temporary and all this selling will be exhausted.

Monday morning, Make it a great week.

I’m dating myself with that comment but in reality when certain people speak, people or the Bonds listen.

Fed Presidents, Bullard, Logan and Ray Dalio’s warning the debt ceiling crisis could be “catastrophic” to the economy.

Powell will speak at 11am ET (8 am PT for us on the West Coast). The odds of a rate hike went from near zero to 40% today.

Waiting for the Used Car market to drop. You may have to wait.

It is finally Friday, what a week. Have a fantastic weekend and always feel free to reach out anytime.

Pace of wage growth not consistent with 2% inflation. Fed- Jefferson

He also noted that wage growth is still strong and will remain that way through the end of the year.

The Bond market is up, which translates to higher rates. The graph below shows the movement of the last 30 days. Down is higher rates. This is about a .250 swing.

I will be at the Palm Springs Affiliate Showcase. Hope to see you .

Sellers are holding on to their 3.50% interest rate (or lower) even if they don’t like their home. If the interest rate was 5%, it’s only 15% higher than your 3.5% mortgage. Numbers are magical if you don’t dig a little deeper to understand.

Gold is the most non-reactive of all metals and does not rust. Gold is so pliable that it can be made into sewing thread. Gold can conduct heat and electricity.

You ask, Hey Jack, what is the boiling point of gold. Well it’s 5,086 degrees Fahrenheit.

It’s Wednesday, half way through the week.

I am going to keep today light and fun.

Us workers are feeling very content according to the annual survey from the Conference Board, putting the job satisfaction at 62.3% in 2022.

The greatest satisfaction is “experience of work” factors that include work/life balance.

What’s in a name?

The Social Security Administration published its annual list of the most common baby names in the US.

Have a fantastic rest of your week.

The Federal Housing Finance Agency (FHFA) announced that it has rescinded the upfront fees based on borrowers’ DTI ratios/credit scores for loans acquired by Fannie Mae and Freddie Mac.

Rates starting the day are down from Friday. See graph below. down is higher rates. The movement only represents about a 0.125-0.250 change in rate.

Monday Monday…. Make it a great week.

There is some interesting chatter in the Mortgage News channels and broadcasts that the Feds might know what they are doing and we will have a soft landing.

Time will tell.

Its Friday and the middle of May already. Have a fantastic weekend and always happy to take your call, email or txt.