Mortgage Rates Hold Steady

As expected, mortgage rates held steady this last week, with a very slight improvement Monday and Tuesday of this week, supporting the notion that bonds are oversold but won’t recover until the New Year. The Electoral College vote did not appear to have any measurable impact on the market, so we presume that the market...

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...

Did Mortgage Rates Level Off Last Week?

Well, they made a run at it.  Many analysts believe that the bond and mortgage-backed securities markets are oversold – in plain English, that mortgage rates have popped up too high and too fast. How high?  That’s a good place to start the discussion.  At a given price point, conventional mortgage rates are about 0.325%...

Interest Rate Update – After Trump

I haven’t updated interest rates for a while, because they were so stable for so long.  After the election of Donald Trump on Tuesday, however, that changed.  Let’s take a look at where they’ve gone and what they might do next. Rates were unusually stable for several months.  Looking at the chart above, the red...

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 –...

How Will the Fed’s Increase of Interest Rates Affect You?

No one will know until we all know, but most analysts agree and investors are betting that the “Feds” – the Board of Governors of the Federal Reserve Bank – will raise interest rates when they meet on December 15th and 16th. How will this impact you? First, let’s talk about what interest rates they...

Interest Rates Jump – What’s Next?

A surprisingly strong jobs report on Friday got a lot of media attention for pushing interest rates up, and interest rates did indeed take a bit of a jump up on Friday. But if you take a look at the chart below you’ll see they’ve actually been rising sharply for two weeks. We can ask...

Interest Rates Still at Precipice

The conventional wisdom is that as stock prices fall investors move money into “safe-haven” investments like bonds. This drives bond prices up, and thus yields down, so when stock prices fall, interest rates usually go lower. (This is a simplification, but for our purposes today will do.) Stock prices that are arguably inflated, international economic...

Will Mortgage Rates Dive This Week?

Previously, at Loanguide.com… A couple of weeks ago I speculated that mortgage rates could drop anytime. Have they? Yes, if you measure rates by 10-year Treasury bond yields, or even the Fannie Mae 60-day yield (the yield investors demand when they purchase mortgage-backed securities from Fannie Mae to be back by loans delivered 60 days...

Mortgage Rates Are About To Fall

I was right this time! The danger of predicting mortgage rates is that you will be wrong once in a while. Maybe even some of the time. Sometimes most of the time. This time it looks like my observations last week were just about right. Downward pressure on stock prices and trouble in the world-wide...