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

 

 

The rally in U.S. equities that began on the day after Christmas continued last week, as the S&P 500 climbed 2.5 percent, bringing the total for the rebound to 10.4 percent. Stocks have risen on nine of the twelve trading days throughout this period. Each of the eleven sectors in the index has advanced, but it has been cyclical groups that have led the way, including energy, consumer discretionary, communication services, industrials and technology. [...]
Mon, Jan 14, 2019 10:25:00 PM, Continue reading at the source
Ameriprise Financial (NYSE: AMP) is ushering in 2019 with new advertisements that bring to life the personalized experience the firm and its approximately 10,000 financial advisors deliver to clients. [...]
Mon, Jan 14, 2019 3:47:00 PM, Continue reading at the source
Diversification is a time-tested, foundational principle of wealth management. Reduced portfolio volatility and downside loss mitigation are bedrock principles of its value. Yet the further removed we get from the type of market conditions in which diversification reveals its value, the more likely we are to question it. We see this pattern of belief, skepticism and abandonment repeated time and again over market cycles. It seemed that we had, once again, arrived at one of those moments towards the end of last year's third quarter, just before the start of the recent selloff in stocks. But the severity and speed of the market decline in last year's fourth quarter seem to have restored some faith in the wisdom of diversification. [...]
Thu, Jan 10, 2019 8:01:00 PM, Continue reading at the source
The bounce in U.S. equities off the Christmas Eve low now amounts to an impressive 7.7 percent, although the move has certainly been vertiginous, as a 2.5 percent down day in the S&P 500 last Thursday was followed by an almost 3.5 percent gain on Friday. But at week's end, stocks had climbed 1.9 percent. The big move on Friday came after Federal Reserve Chairman Powell said the Fed would be patient in normalizing monetary policy, temporarily relieving the anxiety of the more skittish Fed watchers. [...]
Mon, Jan 07, 2019 10:00:00 PM, Continue reading at the source

 

One comment

  1. webpage says:

    Way cool! Some extremely valid points! I appreciate you writing
    this write-up and the rest of the site is extremely good.

    View Comment

Leave a Reply

%d bloggers like this: