Soybeans Push Mortgage Rates Lower?

Thanks to soybeans, air planes and cars – mortgage rates may drop.  Of course I am referring to China’s proposed $50 billion in US trade tariffs on aircraft, autos and Edamame. Apply for a Home Loan 602.435.2149 Stocks, Bonds & Home Loan Interest Rates Why would this news make mortgage rates possibly drop?  We call it a “flight to quality”.   Here is how it works.  Consider the following truths: Investors can invest in Stocks or Bonds Stocks represent the … [Read more...]

Fed Rate Hike | Mortgage Rates Fall

March 2017 -  Fed voted 9-1 to hike the Fed Funds Rate by .25% today – and mortgage rates dropped considerably immediately.  The notes from the Fed’s meeting indicate they are considering 2 additional Fed Funds rate hikes in 2017 (depending on economic data and indices such as inflation). With our current economic and political environment, this rate hike has and will have more press than most.  While many hear “rate hike” and and do not differentiate which rates were actually “hiked” … [Read more...]

Home Loan Rates Face Jobs Data

The Jan 7th, 2017 “New Jobs” and “Unemployment Rate” data is a potential market mover.  If the data comes in around 160k new jobs and 4.7% unemployment we should see the mortgage rate rally from 2017 week 1 continue on into next week. Apply for a Home Loan 602.435.2149 Some have called the 9 week post-election rate increase the “Trump Tantrum.” It reminds me of “Taper Tantrum” which was a 1 week rate jump in the summer of 2013.  Is an increase of $31.06 per … [Read more...]

Mortgage Rates and The Election

Once every 4 years clients hold their breath to see how election day impacts home loan rates.  How does Nov 8th actually impact mortgage rate trajectory? Hip shooters simply predict “in election years rates go up…” or “in election years rates go down.”   Reality check - presidential elections alone have zero impact on mortgage rates.   The actual president elect and the direction their agenda will take our nation is what can impact mortgage rates.  The relationship between the president … [Read more...]

Fed Funds Rate and Mortgage Rates

In December of 2015, the Fed did something they had not in nearly a decade – increase the Fed Funds Rate.  The Fed bumped the Fed Funds Rate .25%.  Fannie Mae and Freddie Mac do NOT go on hiking trips with the Fed.  In other words, a Fed rate increase does not equal a mortgage rates increase.  They may move together and they may.  The real question is are they moving because of each other? Below is a graph showing the history of the Fed Funds Rate and Mortgage Rates (per Freddie Mac).  After … [Read more...]