Mortgage Trending

2014 ushers in 5% mortgage rates

By Brena Swanson
The housing market is just around the corner from the new year, and besides an onslaught of new regulations, the year 2014 is also estimated to bring a new high: 5% mortgage rates.smal_o

By the end of 2014, Frank Nothaft, chief economist with Freddie Mac, predicts that mortgage rates will approach and perhaps touch 5%, mostly due to the Federal Reserve’s quantitative easing.

At some point the Fed will scale back their bond purchases, Nothaft said, but when they will start and how gradual it will be, is very unclear.
“I do think in the first half of the year they will announce something on tapering, and they will start to pull back. But when you have a big investor like the Fed scale back their purchases, it will lead back to an uptick in yields, which will translate into higher mortgage rates,” Nothaft said.

Personally, Nothaft said he believes that if Janet Yellen is nominated as chairman, one of her first acts will be to get a consensus statement from the Federal Open Market Committee that is as transparent as possible as to what the Fed will do about tapering. full story


Mortgage rates continue upward momentum

By: Christina Mlynski

Fixed mortgage rates edged higher for the second week in a row on stronger than expected economic data, specifically the jobs report that shocked the market. More importantly, the 30-year fixed-rate mortgage reached its highest level since September, when it averaged 4.32%. The 30-year FRM came in at 4.35%, up from 4.16% last week, and also up from 3.34% last year, Freddie Mac said in its Primary Mortgage Market Survey. “Fixed mortgage rates increased this week following stronger than expected economic data releases,” said Freddie Mac vice president and chief economist Frank Nothaft. He added, “Nonfarm payrolls increased by 204,000 in October, above the consensus forecast. In addition, revisions added 60,000 additional jobs to the prior two-month releases. Preliminary estimates indicate real GDP growth in the third quarter was 2.8 percent, also above consensus.”

The 15-year, FRM increased 3.35%, up from 3.27% last week and a steep rebound from 2.65% last year. Meanwhile, the 5-year Treasury-index adjustable-rate mortgage averaged 3.01%, up from 2.96% last week, and an increase from 2.55% a year ago. Additionally, the 1-year Treasury-index ARM came in at 2.61%, unchanged from last week, dropping from 2.55% a year earlier. …full story



Mon, Jan 22, 2018 5:22:00 PM, Continue reading at the source
Bond yields took another step higher last week, as foreign central banks hinted at a shift in policy. The yield on the ten-year U.S. Treasury note rose seven basis points to 2.55 percent, its highest weekly close since last March. At one point on Wednesday it briefly hit 2.60 percent. The two-year note edged higher by four basis points to 2.0 percent for the first time in almost ten-years. Most of the move higher came on Tuesday after the Bank of Japan (BOJ) indicated it had reduced the amount of long-dated bonds it had purchased as part of its monetary stimulus program. [...]
Tue, Jan 16, 2018 9:29:00 PM, Continue reading at the source
What a way to start the new year! After meandering sideways for a couple of weeks at the close of 2017, as investors digested the impact of tax reform and in the face of year-end repositioning, stocks came roaring out of the gate in the first week of trading in the new year. The S&P 500 rose 2.6 percent in the holiday- shortened week, its best performance in over a year. The results were clearly a vote of confidence in the economy, as no fewer than five sectors gained more than 3 percent, led by energy, materials and technology, but also including consumer discretionary and healthcare. The laggards were utilities and REITs, both falling more than 2 percent. [...]
Tue, Jan 09, 2018 3:20:00 PM, Continue reading at the source
Mon, Jan 08, 2018 11:00:00 AM, Continue reading at the source
As tumultuous as the social and political landscape was in 2017, the financial landscape was anything but. The S&P 500 gained just over 19 percent on a price-only basis (19.4 percent), nearly four times its average annual gain over the past twenty years, and it did so with record low volatility. The MSCI All Country World index rose 22 percent, approximately five times its average return of the past twenty years, also with dramatically diminished volatility. The yield on the ten-year Treasury note began the year at 2.44 percent, and ended it at 2.41 percent. It did trade in a 60-basis point range, but failed to establish any clear direction, mostly because trailing twelve-month core consumer prices fell from 2.1 to 1.7 percent. Shorter maturities were a different story. The two-year note yield rose from 1.19 to 1.88 percent, as the Fed raised the overnight rate three times in the belief that inflation, whose absence was a “mystery”, would eventually show up. [...]
Tue, Jan 02, 2018 9:35:00 PM, Continue reading at the source


One comment

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