Anticipation: Will the Feds Raise Interest Rates?

6/13/2017 | Casey Fleming Last week I wrote that we were almost certainly going to see the Feds raise short-term rates when they meet this week on Wednesday, June 14th. I predicted that mortgage rates would rise starting Thursday in anticipation of what the market would do in response to whatever action the Feds took. If...

Conforming Loan Limits Increased!

As expected*, The Federal Housing Financial Agency (FHFA) announced today that they are raising the conforming loan limit for 2017 from $417,000 to $424,100.  This is the first raise in the conforming loan limit since 2006.  This is important because conforming loans – those purchased by Freddie Mac or Fannie Mae – are explicitly guaranteed...

How Will Trump Impact Mortgage Rates?

Will Trump’s election move mortgage rates?  On October 1 I wrote “ If (Investors) see..Trump…as destabilizing they are likely to drive long-term interest rates up.” Today the stock market initially tanked in overnight trading, and then soared up as investors digested the meaning of a Trump presidency, with some stock classes (like private prisons –...

Interest Rates Make a Move

Last week I wrote that there was little upward pressure on interest rates, and so rates would probably remain steady through the middle of the week, or fall slightly.  The ten-year bond (red line) did fall steadily until Friday, when it made a small move back up. Mortgage-backed securities (blue line) held steady through Tuesday,...

Well, What Did The Feds Do?

I mentioned last weekend that interest rates would probably rise or hold steady in anticipation of the announcement from the Federal Open Market Committee, which is comprised of the Board of Governors of the Federal Reserve Bank, affectionately known as “the Feds.” After a two-day meeting March 15th and 16th the Feds have decided to...

Interest Rate Update – With a New Chart

We’re in a very interesting place as far as interest rates go. They seem to be pretty much stuck in neutral regardless of what the market does. Looking at the graph above you can see that U.S. Treasury yields (red line) are close to a 13-month low, and seem poised to stay there. Mortgage-backed securities...

Interest Rates Continue to Slide

On January 15th I wrote that interest rates were going to make a strong move downward in the next week. That turned out to be pretty much accurate. Rates continued to slide the following week, albeit at a more moderate pace. This week interest rates at the retail level (the pricing you, as a consumer...

Stock Market Crash Destroys Interest Rates

On November 30th I wrote that the impending Fed’s bump in short-term interest rates would not impact interest rates on mortgages. On January 4th I wrote that eventually the Fed’s will influence mortgage rates when they decide that the danger of inflation from a booming economy will allow them to slow down the economy by...

Mortgage Applications Plummet!

This is going to make some folks nervous. The few who are left in the mortgage industry may want to polish up their resumes and maybe take some classes. Real estate is still smoking hot, especially in the Bay Area. So you would think that those of us in the real estate industry are doing...

Your Rent is Going Up

Your landlord called and says your rent is going up. Well, not really,  But the Urban Institute, a Washington, D.C. think tank that conducts research on economic and housing policy, sees plenty of reasons for your landlord to call. Note I said “reasons,” plural.  There are a lot of factors that drive rent levels, but...