By Taff Weinstein at
According to recent Census Bureau data, there are more than 71 million people in the U.S. aged 60 and older.
Each year more people reach retirement age and decide to make some changes as they enter a new phase of their lives. One big shift could be relocating to other cities or states with the help of a financial advisor. For some, the goal is to avoid paying taxes on all of their retirement savings. For others, it’s the chance to spend their golden years in a new and different climate. Regardless of what’s brought them to a locale, retirees are an important part of city and state economies.
In SmartAsset's 2019 survey, the top five states for retirees are the same as last year, though North and South Carolina did switch spots. Florida is the clear leader, but Arizona has closed the gap. While the gap between Florida and Arizona’s net migrations last year was more than 56,000, it’s about 37,700 this year.
Notably, half of the states in our top 10 do not tax income and wages. Florida, Nevada, Texas and Washington have no income tax at all. Tennessee doesn’t tax wages, which means retirees in the state don’t pay tax on income from Social Security, 401(k) plans or individual retirement account (IRAs).
The bottom 10 of the list includes some of the least tax-friendly states. For example, California, New York and New Jersey all rank in the bottom five. Seven of the bottom 10 states in our list also rank among the 10 most expensive states in terms of monthly housing costs, which include property taxes and homeowners insurance. However, Washington State, which ranks in the top 10 for where retirees are moving, is also the eighth most expensive state when it comes to monthly housing costs.
Source: SmartAsset Survey
Mortgage backed securities (FNMA 4.00 MBS) lost just -7 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move sideways compared to the previous week.
Overview: We actually had a fairly strong round of domestic economic data with a small uptick in inflation (CPI) and very strong jobs data (JOLTS). But it was all trade talk, all the time last week with everyone's attention on the China/U.S. trade talks which ended up in an increased tariff rate on Friday. Mortgage backed securities were confined in a very well-defined technical trading channel and effectively moved sideways for the week.
Inflation Nation: The April Consumer Price Index moved a little higher than March's pace. The Headline CPI YOY came in at 2.0% which was a tick higher than March's 1.9%. The market was expecting 2.311%. Core (ex food and energy) moved from 2.0% yo 2.1% which matched market expectations. moved a little higher than March's pace. The Headline CPI YOY came in at 2.0% which was a tick higher than March's 1.9%. The market was expecting 2.31%. Core (ex food and energy) moved from 2.0% yo 2.1% which matched market expectations. The April Producer Price Index remained on the same pace as March. The Headline PPI YOY came in at 2.2% which was the same reading in March. The market was expecting 2.3%. Core (ex food and energy) remained at 2.4%, the market was expecting 2.5%.
Trade War: Tariffs engaged. The tariff rate of 10% was increased to 25% on $200B of Chinese goods today as the two sides continue to negotiate.
Jobs, Jobs, Jobs: The March Job Openings and Labor Turnover Survey (JOLTS) once again came in above 7M with an extremely high reading of 7.488M vs est of 7.240M. Plus, February's very high reading was revised upward. The trend of +1M more job openings than there are unemployed people looking for jobs continues and this time it is a new record with 1.7M more jobs available than unemployed. Also, we see a recent record high of Quits have increased since a low in August 2009 and have surpassed prerecession levels. In March 2019, there were 3.4 million quits. This means that employees are leaving one job to go to another (presumably for higher wages/benefits).
Economic Optimism: The IBD/TIPP May reading was very robust and beat out expectations (58.6 vs ets of 54.5)
The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises.
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
By Taff Weinstein at
Louisville! While the fabled Kentucky Derby at Churchill Downs in Louisville, KY had an unusual outcome this weekend, the City of Louisville was the big winner. LendingTree looked at the average amount of real estate taxes, mortgage interest and mortgage insurance premiums that were paid by homeowners in a given metro, as reflected on their tax returns. The study then ranked the nation’s 50 largest metros to show where people paid the lowest taxes on their homes. Key findings
Source: LendingTree Real Estate Tax Survey
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Mortgage backed securities (FNMA 4.00 MBS) were unchanged (+0) basis points (BPS) from last Friday's close which caused fixed mortgage rates to move sideways compared to the previous week.
The Talking Fed: The Federal Open Market Committee released its Interest Rate and Policy Statement on Wednesday. You can read the official release here.
Jobs, Jobs, Jobs: Big Jobs Friday! You can read the official BLS report here.
Here is the tale of the tape: Jobs: April Non Farm Payrolls 253K vs est of 185K March NFP revised from 196K down to 185K Feb NFP revised from 33K up to 56K **The rolling three month average is now 169K Wages: Average Hourly Earnings rose 6 cents and is now $27.77 Average Hourly Earnings YOY rose by 3.2% which matches March's pace, April Estimates were for 3.3% Average Hourly Earnings MOM rose by 0.2%, March was revised upward from 0.1% to 0.2% Unemployment: The Unemployment Rate fell to 3.6% vs expectations of 3.8% and is now the lowest since 1969 The Participation Rate moved lower from 63.0% down to 62.8% Services: The April ISM Non-Manufacturing PMI which represents more than 2/3 of our economic engine was lighter than expected (55.5 vs est of 57.0) Still a very good reading as it is above 50 but it was not as red hot as the market was projecting. Manufacturing: The national ISM PMI had an expansionary reading of 52.8 vs est of 55.0. Prices Paid hit vs 55.0 est of 55.1
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What to Watch Out For This Week:It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
Reader's Digest has come out with a very interesting list where they complied the most "famous" home in every state. Some have historical significance, some architectural and some are due to celebrity status. ![]() |
Mortgage backed securities (FNMA 4.00 MBS) gained +29 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move slightly lower compared to the previous week. Taking it to the House: Existing Home Sales for March were a little lower than expected (5.21M vs est of 5.30M) on an annualized basis. But is that a miss? Or are the "estimates" wrong to begin with? Regardless, time on the market fell, and we hit a new all time high for March for the median sales price. In fact the median sales price YOY has now risen for 85 straight months.
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What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
While the total number of units selling is down slightly (due to limited inventory), the median home price set a new all time record for a March reading. According to the National Association of Realtors Existing Home Sales report, the median price for a home moved upward to $259,400 which is up from March 2018 ($249,800). March’s price increase marks the 85th straight month of year-over-year gains. ![]() |
Mortgage backed securities (FNMA 4.00 MBS) lost just -5 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move sideways compared to the previous week. The Talking Fed: We got to take a look at the latest Beige book prepared by the Fed in advance of their next policy meeting.You can read the official release here. Retail Sales: The March data was much stronger than expected. The headline reading hit 1.6% vs est of 0.9%. Ex-Autos, another beat with a 1.2% vs est 0.7% expectation. Plus February was revised upward from -0.4% to -0.2%.
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What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
According to ATTOM Data Solutions, U.S. properties with a foreclosure filing during the first quarter of 2019, were down 23 percent from the previous quarter and down 15 percent from a year ago to the lowest level since Q1 2008. “While some markets saw a slight uptick in foreclosure filings, that is above pre-recession levels, the majority of the major markets are well below pre-recession levels,” said Todd Teta, chief product officer at ATTOM Data Solutions. “While we did see a slight increase in U.S. foreclosure starts from last quarter, bank repossessions reached an all-time low in the first quarter of 2019, showing continuing signs of a strong housing market.” Bank repossessions down in 48 states and DC What Happened to Rates Last Week?![]() |
Mortgage backed securities (FNMA 4.00 MBS) lost -34 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move higher compared to the previous week. Inflation Nation: The March Import Prices were much higher than expected with the MOM at 0.6% vs est of 0.4% and Feb revised upward from 0.6% to 1.0%. YOY Import Prices came in at 0.0% but that is a huge beat considering the estimates called for a decline of -1.3%. The majority of the increase is attributed to energy costs. The March Producer Price Index (PPI) was a littler hotter than expected. The Headline PPI YOY moved upward from 1.9% in Feb to 2.2% in March, the market was pricing in another 1.9% reading. The Core PPI YoY remained at 2.4%. (PPI) was a littler hotter than expected. The Headline PPI YOY moved upward from 1.9% in Feb to 2.2% in March, the market was pricing in another 1.9% reading. The Core PPI YoY remained at 2.4%. The March Consumer Price Index (CPI) was a mixed bag. The Headline CPI YOY moved upward from 1.5% in Feb to 1.9% in March, which is a large move. However, it was largely expected with expectations in the 1.8% rang. Meanwhile the Core (Ex Food and Energy) CPI YOY hit 2.0% vs est of 2.1%.
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What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upo |
By Taff Weinstein at
According to a new report by RedFin, Americans are speeding up the time to search and tour homes before making a decision and putting in an offer. Buyers this year are also having to see fewer homes in person and write fewer offers before successfully landing a home. Nationally, buyers toured an average of about 10 homes this winter before closing on a home, and made an average of 1.6 offers, compared to touring about 11 homes and making 1.8 offers a year ago. Buyers’ Time on Market, 3-Month Median as of February
It took 73 days this winter for a typical buyer to find and close on their new home after their first home tour, faster by four days than during the same period last year and six days faster than its peak in winter 2016, according to a new report by Redfin. Source: Redifin
What Happened to Rates Last Week?![]() |
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Mortgage backed securities (FNMA 4.00 MBS) lost just -2 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move sideways compared to the previous week. Jobs, Jobs, Jobs: We got the big jobs report on Friday. You can read the official BLS report here. |
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What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
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By Taff Weinstein at
New Home Sales were much stronger than market expectations and consensus forecasts. At the current sales rate, it would take 6.1 months to exhaust the available supply of homes. Over many decades, 6 months of supply has been the amount that’s generally considered a sign of a market evenly balanced between supply and demand. Inventory dropped 0.6 percent from revised January figures to 340,000, and rose 13.3 percent from a year earlier. What Happened to Rates Last Week?![]() |
Mortgage backed securities (FNMA 4.00 MBS) lost just -2 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move sideways compared to the previous week, keeping the lowest rates of 2019 alive and well. Inflation Nation: The Fed's Key measure of inflation, PCE (Personal Consumption Expenditures) YOY (Year-over-Year) Core (Ex-Food and Energy) was lighter than expected, coming in at 1.8% vs est of 1.9%. However, the prior month was revised upward from 1.9% to 2.0%, so really it was a match. The Headline PCE YOY matched expectations with a 1.4% increase and the prior month moved up from 1.7% to 1.8%. We had a big miss on Personal Spending which showed MOM increase of only 0.1% vs est of 0.3% and Personal Income hit 0.2% vs est of 0.3% |
What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
Existing home sales increased strongly in February, experiencing the largest month-over-month gain since December 2015, according to the National Association of Realtors®. Three of the four major U.S. regions saw sales gains, while the Northeast remained unchanged from last month. What Happened to Rates Last Week?![]() |
Mortgage backed securities (FNMA 4.00 MBS) gained +50 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move lower compared to the previous week.
The Talking Fed: As expected, they kept their key interest rate unchanged. However, they certainly had a more "dovish" tilt to their outlook compared to their last projections in December.
Taking it to the House: A block-buster Existing Home Sales Report for February with one of the largest monthly gains on record. 5.510M annualized units beat out estimates of 5.10M and represents a 11.2% MOM gain. The March NAHB Housing Market Index remained at 62, the market was expecting 63. Any reading above 50 is positive and above 60 is very strong. |
What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
Monthly rental payments for both single-family homes and multifamily apartments are now rising at the fastest pace in nearly a year, according to Zillow. What Happened to Rates Last Week?![]() |
Mortgage backed securities (FNMA 4.00 MBS) gained +10 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move sideways compared to the previous week. Jobs, Jobs, Jobs: Wow...another new record! The January Job Openings and Labor Turnover Survey (JOLTS) showed 7.581M unfilled positions which beat out estimates calling for a very high level of 7.310M. Per the BLS, the number of Unemployed is 6.2M...so there are 1.381M MORE JOBS THAN THERE ARE PEOPLE LOOKING FOR JOBS. |
What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
Every year when some states "spring forward" like they did this weekend, the national conversation always turns to "daylight savings time" and if we should keep that system in place. But we thought it would be a good opportunity to focus on housing affordability in the different time zones. Each quarter, NerdWallet calculates the home affordability for 178 metropolitan areas, matching the list of metros for which the National Association of Realtors publishes median home prices. This quarter, NerdWallet sorted the metro areas by time zone, slicing the contiguous United States roughly into fourths. There were big differences in affordability of homes among time zones. What Happened to Rates Last Week?![]() |
Mortgage backed securities (FNMA 4.00 MBS) gained +44 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move lower compared to the previous week. Jobs, Jobs, Jobs: We got the Big Jobs report on Friday and while the headline Non-Farm Payroll missed, overall it was very strong. ISM Services: Wow, the February ISM Non Manufacturing had the 4th best reading in 20 years and handily beat market expectations (59.7 vs est of 57.3). This is more important than last week's ISM Manufacturing release as this represents more than 2/3 of our economy. Central Bank Palooza: The European Central Bank kept their key interest rate at 0.00% but came out with a much more dovish approach. ECB President Mario Draghi went full-dove and admitted that its forecasts were way off and revised 2019 growth expectations "substantially" lower (from 1.7% to +1.1%) and slashed all inflation forecasts with 2019 GDP at 1.1% vs their original expectations of 1.7% and inflation of 1.2% vs original "guestimates" of 1.6%. |
What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
Pending home sales rebounded strongly in January, according to the National Association of Realtors®. All four major regions saw growth last month, including the largest surge in the South. Source: National Association of Realtors What Happened to Rates Last Week?![]() |
Mortgage backed securities (FNMA 4.00 MBS) lost -33 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move higher compared to the previous week. GDP: We finally got the Preliminary (will be revised several times) GDP report for the 4th QTR which was delayed due to the government shutdown and it came in much better than expected with a solid growth rate of 2.6% vs estimates in the 1.8% to 2.3% range. 4th QTR 2017 to 4th QTR 2018 is now 3.1% and the calendar year is at 2.9%. Either way you slice it, its a solid 3.0% growth rate for 2018. Inflation Nation: The Fed's primary measure of inflation was released and it remained just a smidge below their 2% target rate with a reading of 1.9%. The December Personal Income was more than double the market estimates (1.0% vs est of 0.4%). Personal Spending for December was -0.5% vs est of 0.3%. No one believes that number as it coincides with the same department that released the awful Retail Sales report for that same period which has been proven to be wrong by every possible metric available. Taking it to the House: Weekly Mortgage Applications increased by 5.3%. Purchase applications were up 6.0% and Refinances were up 5.0%. January Pending Home Sales were much better than expected with a nice gain of 4.6% vs est of only 0.4%. The Talking Fed: Fed Chair Powell gave his semi-annual monetary report to the Senate and House committees on Tuesday and Wednesday. There were really no surprises as the Fed Chair basically reminded everyone that we are at or near full employment and are at nor near their target interest rate and that the economy is growing at a moderate pace. The only two points that he made that were interesting (but did not move bond prices) were: |
What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
In yet another sign of a stable and even vibrant housing market, more and more homeowners are current on their mortgage payments. What Happened to Rates Last Week?![]() |
Mortgage backed securities (FNMA 4.00 MBS) gained just +10 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move sideways compared to the previous week. Taking it to the House: January Existing Home Sales came in at 4.94M units vs est of 5.00M. So a slight miss but December was upgraded from 4.99M to 5.00M. The median existing-home price for all housing types in December was $253,600, up 2.9 percent from December 2017 ($246,500). December’s price increase marks the 82nd straight month of year-over-year gains. The February NAHB Housing Market Index was much stronger than expected, shooting up from 58 in Jan to 62 in Feb. The market was expecting a reading of 59. Any reading above 50.0 is positive. All regions, with the exception of the North East, had positive gains. The Talking Fed: We got the Minutes from the last FOMC meeting. Here are a few highlights: |
What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
There isn't a lot American millennials wouldn't do to have a chance at owning a home some day. In a sign of how desperately out of reach most millennials consider homeownership to be, some 30% of respondents said they felt they had a better chance of dating an A-list celebrity than ever owning their own home. Meanwhile, 40% of respondents said they felt homeownership is "completely out of the question" unless they inherit property from their parents, and 42% said they would like to buy a home, but they simply can't afford it. Nearly half of respondents believe that buying a home would be more difficult now than it was 30 years ago. In a similar vein, only 8% of millennials disagreed with the belief that life is harder now than it was for Baby Boomers. Source: OnePoll What Happened to Rates Last Week?![]() |
Mortgage backed securities (FNMA 4.00 MBS) lost -21 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move higher compared to the previous week. Consumer Sentiment: The February University of Michigan's Consumer Sentiment Index was much stronger than expected, hitting 95.5 vs est of 93.0 and a nice rebound from January's final reading of 91.2 Retail Sales: This is data that was supposed to be released during the government shutdown...they should not have let it out at all as it was awful. December headline Retail Sales dropped by -1.2% vs est of a gain of 0.2%. When you strip out autos, Retail Sales were down by -1.8% vs est of 0.1%. Jobs, Jobs, Jobs: The December Job Openings and Labor Turnover Survey (JOLTS) had its highest reading ever on record showing more than 7.335M open positions....just waiting for someone with the right skill set. There are now 800K more jobs avail then their are people unemployed in America. |
What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
While home sales have been very steady and strong, there is one key roadblock that is keeping a lid on further gains in sales. Inventory. The lack of available homes for sale has severely restricted the ability for many to find a home (at any price). There are many reasons for such a tight supply, in today's article, we will focus on Seniors....yes Seniors. Source: Freddie Mac What Happened to Rates Last Week?![]() |
Mortgage backed securities (FNMA 4.00 MBS) gained +13 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move sideways compared to the previous week. ISM Services: The January ISM Non-Manufacturing PMI representing about 2/3 of our economic output hit 56.7 vs est of 57.1. It is one of the lower readings in 2 years but still considered very robust since it is above 55.0. Part of the miss is due to the nice upper revision to December from 57.6 to 58.0 The Talking Fed: Fed Chair Powell said income inequality and sluggish productivity are the biggest challenges of the next decade but he did not discuss anything new about monetary policy. Dallas Fed President Robert Kaplan said that U.S. interest rates are currently “in the neighborhood” of a neutral level, and the Fed should not be using monetary policy to stimulate the economy, or to slow it, at this point. St. Louis Fed President James Bullard said that the U.S. Federal Reserve’s interest rate increase in December likely tipped monetary policy into slightly restrictive territory, a step beyond the neutral level policymakers had hoped to hit. Factory Orders: The November U.S. Factory Orders were lighter than expected (-0.6% vs est of +0.2%) but were a nice improvement over October's pace of -2.1%. |
What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |
By Taff Weinstein at
Sales of new single-family houses in the United States jumped 16.9 percent from the previous month to a seasonally adjusted annual rate of 657 thousand in November of 2018. What Happened to Rates Last Week?![]() |
Mortgage backed securities (FNMA 4.00 MBS) gained +47 basis points (BPS) from last Friday's close which caused fixed mortgage rates to move lower compared to the previous week. Government Shutdown Showdown: President Trump reached an agreement with the Democratic leadership and announced that he would agree to temporarily reopening the government for only 3 weeks and back pay would be going to government employees very quickly. Whether the 3 weeks turns into longer depends on the works of a new commission that is required to be formed as part of this deal to review all the data and proposals from agencies involved in border security. If the works of this commission lead to a new homeland security budget/bill that does include enhanced (wall) security then most likely the government will remain open past the three week period. But if not, it could be another shutdown ahead. The Talking Fed: The FOMC kept their key interest rate unchanged in the 2.25% to 2.50% range. Jobs, Jobs, Jobs: Big Jobs Friday is here. Lets look at the Tale of the Tape! |
What to Watch Out For This Week: ![]() The above are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises. It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. |