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

 

 

Despite the distraction of the administration's incipient trade war, U.S. equities have quietly managed to grind higher over the past few weeks. The S&P 500 index climbed 1.5 percent last week for the second week in a row. And since briefly piercing its 200-day moving average on April 2, the index has risen 8.5 percent, and now sits at its highest level since February 1, up 4.8 percent on the year. During the most recent two-week stretch each of the index's eleven sectors are positive, but it has been the healthcare and technology sectors that have led the way, followed by telecom, consumer discretionary and industrials. [...]
Mon, Jul 16, 2018 9:09:00 PM, Continue reading at the source
Mon, Jul 09, 2018 10:55:00 PM, Continue reading at the source
As the second quarter came to a close, the Federal Reserve could claim a victory, of sorts. It was finally able to achieve its target of 2 percent core inflation, for the first time in six years, with release of the Personal Consumption Expenditure (PCE) data for May. Being mindful of the threat of too much inflation, however, the Fed seems intent on additional future rate hikes, perhaps two more this year. Two weeks ago, Fed chair Powell said the case for continued gradual rate hikes is strong. Last week, Boston Fed president Rosengren said in a Wall Street Journal interview that he was comfortable with the “direction” of two more rate hikes this year, cautioning about the possibility of higher inflation from falling unemployment. [...]
Tue, Jul 03, 2018 5:31:00 PM, Continue reading at the source
Another week of trade threats and promised retaliation kept investors off stride and markets adrift. The S&P 500 shed 0.9 percent, its first weekly decline in the past five. Trade jitters were even less kind to the Dow Jones Industrial Average, however. Owing to its constituents' greater exposure to foreign trade, the Dow fell 2.0 percent last week, its third decline in the past four weeks. And only a modest bounce on Friday prevented the Dow from dropping for nine straight days. [...]
Tue, Jun 26, 2018 5:14:00 PM, Continue reading at the source

 

One comment

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