Good news for inflation sent bonds into positive territory Friday on the heels of a stock sell off. This ended the week with FNMA mortgage bonds up almost 100 basis points over the close the previous Friday August 7th. This of course is good for mortgage rates since a higher yield in bonds leads to lower mortgage rates for the home buying public.
While this is not a huge decline in rates, in a tough mortgage market we will take what we can get and call the glass half full at any possible opportunity.
Coming up this week are plenty of economic reports that will have an affect on mortgage bonds and consequently mortgage rates. Remember, what is good for the economy, is generally bad for bonds and bad for mortgage rates. If you currently have a mortgage in processing but have not yet locked the rate, watch the news closely next week as the many indicators due out could swing the market in either direction including the Produce Price Index (PPI), New Housing Starts, Building Permits, and Jobless Claims to name a few.
If you would like to get pre-approved for a purchase or refinance in Gulf Shores or the Greater Pensacola area, please call 850-221-8334 anytime.
Steve Russell
Mortgage Banker
Primary Residential Mortgage
850-221-8334 Cell
850-497-6325 Office
Steve@steverussellonline.com
www.SteveRussellOnline.com
* All rates assume the purchase of a single family primary residence with at least 20% down payment, 740 credit scores, and verifiable income and assets. Rates vary based on borrower profile and property type. Rates are subject to change without notice. All rates also assume a 1% origination fee. Loans with no origination fee and no points may be available at a higher rate. Not all borrowers will qualify for the rates listed above.
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The bond market had a rough day yesterday and yet it has had little affect on today’s mortgage rates. This is likely due to previous rate increases to try and slow down the overwhelming rush to refinances that has underwriting backed up for weeks.
Something interesting is happening with the FED’s buy back program for mortgage backed securities. As mortgage bonds are traded, they come at certain "coupon" rates and are sold in .5% intervals. For instance, right now we are watching the 4% Fannie Mae
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According to FED member Frederic Mishkin in an interview on CNBC this morning, we could see inflation begin to creep into the economy based on all the government programs on the drawing board.
If there is anything that will scare away bond investors…it is the word inflation. This combined with the summer driving season right around the corner which will inevitably lead to higher oil and gas prices means that we will likely see much higher mortgage rates in
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Mortgage bonds are down again today as they continue to bounce off a level of support at the rising trend line.
In this volatile market, things move quickly and rates are changing throughout the day with little or no warning.
Jobless claims came out today and jumped by 62,000 to a total of 589,000 which is much worse than the forecast of 548,000. This
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We wake up today with a new president and new direction for the future and regardless of your party affiliation, the excitement in the air is palpable.
All of the hoopla over our new comander in chief got me thinking, if much of the economy is actually based on the perception of the citizens within that economy, is it possible that the excitement of the new administration will turn into a boost for consumer sentiment and the economy as a whole. It will be months before that theory is proven even if it is true, but it makes for interesting dinner conversation.
Mortgage bonds remain in positive territory today bouncing off of support levels near the 25 day moving average. There is no economic news due out today, so the bond markets will likely get their cue from stocks.
Today also marks the beginning of Senate confirmation hearings for Treasury Secretary nominee Timothy Geithner. Given his problems in the past with paying his taxes, I find it ironic that he may actually be the new head of the IRS.
Mortgage bonds are hovering very near levels that would indicate it has been oversold recently which could mean a run up soon. If this happens, be prepared to lock in your rate on a rally. For today, we will continue to float and watch.
If you would like to get pre-approved for a purchase or refinance, please call 850-221-8334 anytime.
Steve Russell
Mortgage Banker
Primary Residential Mortgage
850-221-8334 Cell
850-497-6325 Office
Steve@steverussellonline.com
www.SteveRussellOnline.com
* All rates assume the purchase of a single family primary residence with at least 20% down payment, 740 credit scores, and verifiable income and assets. Rates vary based on borrower profile and property type. Rates are subject to change without notice. All rates also assume a 1% origination fee. Loans with no origination fee and no points may be available.
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Mortgage bonds are moving down slightly today as the markets react negatively to prospects that the Obama administration is considering nationalizing the banking industry.
If you would like to get pre-approved for a purchase or refinance, please call 850-221-8334 anytime.
Steve Russell
Mortgage Banker
Primary Residential Mortgage
850-221-8334 Cell
850-497-6325 Office
Steve@steverussellonline.com
www.SteveRussellOnline.com
* All rates assume the purchase of a single family primary residence with at least 20% down payment, 740 credit scores, and verifiable income and assets. Rates vary based on borrower profile and property type. Rates are subject to change without notice. All rates also assume a 1% origination fee. Loans with no origination fee and no points may be available.
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The Producer Price Index (PPI) came out and reflected virtually no inflation on the wholesale side of things.
This would normally be a strong indicator for upward activity in mortgage bonds, but so far today that has not been the case as bonds continue to trade sideways and slightly down. The Consumer Price Index (CPI) is due out tomorrow which will reflect the price difference as it is passed from wholesale suppliers to consumers (a more widely used indicator of inflationary pressure). The outcome of this report will likely have a significant affect on the markets. I would say that today is a good day to float your rate and see what happens tomorrow to lock ahead of the weekend. If you would like to get pre-approved for a purchase or refinance, please call 850-221-8334 anytime.
Steve Russell Mortgage Banker Primary Residential Mortgage 850-221-8334 Cell 850-497-6325 Office Steve@steverussellonline.com www.SteveRussellOnline.com * All rates assume the purchase of a single family primary residence with at least 20% down payment, 740 credit scores, and verifiable income and assets. Rates vary based on borrower profile and property type. Rates are subject to change without notice. All rates also assume a 1% origination fee. Loans with no origination fee and no points may be available.
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The Retail Sales report for December came out today with much worse than expected numbers.
Because of this, the Dow is off over 200 points at the time of this posting, and mortgage bonds remain flat on the news. Normally, news like this would send a rush of buyers into the bond market, but that has not been the case so far today, further challenging conventional wisdom in forecasting. Stay tuned as tomorrow will be another big day in the news with the release of the Core Producer Price Index (PPI), Initial Jobless Claims for the first week of January and the Philadelphia FED Index (the outcome of which will have a high level impact on the markets). If you would like to get pre-approved for a purchase or refinance, please call 850-221-8334 anytime.
Steve Russell Mortgage Banker Primary Residential Mortgage 850-221-8334 Cell 850-497-6325 Office Steve@steverussellonline.com www.SteveRussellOnline.com * All rates assume the purchase of a single family primary residence with at least 20% down payment, 740 credit scores, and verifiable income and assets. Rates vary based on borrower profile and property type. Rates are subject to change without notice. All rates also assume a 1% origination fee. Loans with no origination fee and no points may be available.
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Mortgage bonds continue to move sideways today with no significant news to drive it up or down. Stocks are also nearly flat, surprising in the wake of an after closing release by Alcoa that they had a $1 billion loss for the 4th quarter.
Tomorrow will bring the retail sales report for December and the Crude Oil inventory report. This highly anticipated economic data will likely have a volatile effect on the markets making today a good day to get your affairs in order on your mortgage application and be prepared to lock should the news be worse than expected.
If you would like to get pre-approved for a purchase or refinance, please call 850-221-8334 anytime.
Steve Russell
Mortgage Banker
Primary Residential Mortgage
850-221-8334 Cell
850-497-6325 Office
Steve@steverussellonline.com
www.SteveRussellOnline.com
* All rates assume the purchase of a single family primary residence with at least 20% down payment, 740 credit scores, and verifiable income and assets. Rates vary based on borrower profile and property type. Rates are subject to change without notice. All rates also assume a 1% origination fee. Loans with no origination fee and no points may be available.
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Mortgage bonds were off to a rough start this morning at the open.  But, at the time of this posting, they have recovered much of the early morning losses in trading.  No significant economic data is due out until Wednesday January 14th when the retail sales report and crude oil inventories becomes available.
Because of this, the bond market will likely take the lead from stocks and world news over the next 48 hours.
If you would like to get pre-approved for a purchase or refinance, please call 850-221-8334 anytime.
Steve Russell
Mortgage Banker
Primary Residential Mortgage
850-221-8334 Cell
850-497-6325 Office
Steve@steverussellonline.com
www.SteveRussellOnline.com
* All rates assume the purchase of a single family primary residence with at least 20% down payment, 740 credit scores, and verifiable income and assets. Rates vary based on borrower profile and property type. Rates are subject to change without notice. All rates also assume a 1% origination fee. Loans with no origination fee and no points may be available.
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