My Mind on Mortgages

Mortgage rates look like they’ll open up on par or better than they were on Friday morning. Mortgage rates are benefiting from a global “flight-to-quality” as stock markets tumble around the globe (click this link to learn how stocks impact mortgage rates).  Investor sentiment around the world has taken a more pessimistic view of the [...]

Based on the rates sheets we have thus far mortgage rates remain unchanged from Friday, BUT we expect rates to improve by mid-morning. Mortgage-backed bonds rallied yesterday and are following through again this morning on better than expected worker productivity numbers.  The more productive workers are the less wages corporations have to pay to produce [...]

Mortgage rates are higher again this morning. The US Treasury announced that they will offer more inflated-protected bonds in response to greater demand from buyers; especially China.  This is a sign that the market is concerned about future inflation which does not bode well for mortgage rates in the long-term.  I plan to blog about [...]

After moving higher yesterday, mortgage rates have reversed back down to the levels seen on Wednesday.  Why the sudden reversal? In yesterday’s ‘rate update’ video I reported that foreign participation in the US Treasury auctions were relatively light through Wednesday.  This is a bad sign for mortgage rates because if foreign investors don’t buy our [...]

Mortgage rates are modestly lower today for 30-day locks. Despite treasury auction results from yesterday that are not encouraging; mortgage rates have managed to fall slightly on unanticipated news out of China. The Chinese stock market fell 5.0% today on concerns that the Chinese Government would intervene in the economy to slow down the stock [...]