As of yesterday, it looked like mortgage rates would be more interested in staying in a narrow, sideways range for the holiday-shortened Spring Break/Good Friday trading week.  However, financial markets gave us a reminder about how much reality can differ from apparently probable outcomes.  Fortunately, the surprises work in the favor of the mortgage market today as rates are as low a they have been in 2 weeks.

Bonds (which underlie rates) drew motivation from a combination of factors yesterday.  These included compulsory trades that had to be made by the end of the month, automatic trades made in response to certain lines in the sand, and safe-haven trades resulting from the massive losses in the stock market.  The net effect for the average mortgage borrower is a noticeable improvement in upfront costs at the very least.  Bond yields bounced lower yesterday, finally cracking the previously impenetrable 2.8% barrier.  While the rally is "just one day" in a short trading week, it progressed throughout the day, which is encouraging.

Applications for both refinancing and home purchases gained ground during the week ended March 23.   The result was the largest week-over-week gains for overall loan volume since mid-January.  The Mortgage Bankers Association's (MBA's) Market Composite Index a measure of application volume, jumped 4.8 percent on a seasonally adjusted basis compared to the week ended March 16.  On an unadjusted basis the index was up 5 percent.

The Refinancing Index posted its largest positive change since the first week of 2018, rising 7.0 percent compared to the previous week. The refinance share of applications for the week rose to 39.4 percent compared to 38.4 percent a week earlier, reversing a slide that began in early February.

As of yesterday, it looked like mortgage rates would be more interested in staying in a narrow, sideways range for the holiday-shortened Spring Break/Good Friday trading week.  However, financial markets gave us a reminder about how much reality can differ from apparently probable outcomes.  Fortunately, the surprises work in the favor of the mortgage market today as rates are as low a they have been in 2 weeks.

Bonds (which underlie rates) drew motivation from a combination of factors yesterday.  These included compulsory trades that had to be made by the end of the month, automatic trades made in response to certain lines in the sand, and safe-haven trades resulting from the massive losses in the stock market.  The net effect for the average mortgage borrower is a noticeable improvement in upfront costs at the very least.  Bond yields bounced lower yesterday, finally cracking the previously impenetrable 2.8% barrier.  While the rally is "just one day" in a short trading week, it progressed throughout the day, which is encouraging.

Applications for both refinancing and home purchases gained ground during the week ended March 23.   The result was the largest week-over-week gains for overall loan volume since mid-January.  The Mortgage Bankers Association's (MBA's) Market Composite Index a measure of application volume, jumped 4.8 percent on a seasonally adjusted basis compared to the week ended March 16.  On an unadjusted basis the index was up 5 percent.

The Refinancing Index posted its largest positive change since the first week of 2018, rising 7.0 percent compared to the previous week. The refinance share of applications for the week rose to 39.4 percent compared to 38.4 percent a week earlier, reversing a slide that began in early February.

Mortgage Update Provided by: Skin Edge

A wide range of events influenced mortgage rates last week, including comments from the new Fed Chair, government policy changes, and surprises in the economic data. In the end, however, these were offsetting, and mortgage rates finished the week with little change. 

Last Tuesday, Jerome Powell gave his first testimony to Congress as Fed Chair. His comments caused investors to raise their expectations for the pace of rate hikes, which was negative for mortgage rates. He said that "my personal outlook for the economy has strengthened since December." He also predicted that inflation would rise to the Fed's target level of 2% "over the medium term" and that "wages should increase at a faster pace as well." Investors expect a 25 basis point rate hike at the next Fed meeting on March 21.

The biggest surprise in last week's economic data came from the manufacturing sector. The ISM national manufacturing index unexpectedly climbed to 60.8, which matched the highest level since 2004. Readings above 50 indicate an expansion in the sector. Since faster economic growth raises the outlook for future inflation, this data was unfavorable for mortgage rates. 

Last Thursday, President Trump announced that he would impose global tariffs on steel and aluminum imported into the U.S. Concerned that other countries might retaliate and a trade war might develop, investors sold stocks and shifted assets into bonds, including mortgage-backed securities (MBS). The added demand for MBS was good for mortgage rates. 

Looking ahead, the important monthly Employment report will be released on Friday. As usual, this data on the number of jobs, the unemployment rate, and wage inflation will be the most highly anticipated economic data of the month. In addition, the next European Central Bank meeting will take place on Thursday and could influence U.S. mortgage rates.

Copyright @ 2018 MBSQuoteline

Market Update Provided by: Skin Edge

Fairway Independent Mortgage Corp.

770-316-4162 (phone)

877-631-3294 (fax)

skine@fairwaymc.com

NMLS # 1309150

GA License # 45779

AL License # 60997

www.skinedgefairway.com

People are particularly busy between Thanksgiving and Christmas. Most families are preoccupied with buying and wrapping gifts, cooking for family, and hosting parties. If that isn't enough to overwhelm you, you're welcome to throw in an Open House event in the middle of it all. And if you do, are there gonna be people who will come view your home?

Do People Buy Homes Post-Thanksgiving?

This is an age-old question that sellers consistently ask their agents during this time of the year. Realtors, like myself, would likely tell people that they should keep their homes in the market. But whenever I advise for or against something, I make sure that there is a sound basis for that advice. So, what could be considered a sound basis to keep your home in the market despite the busiest month of the year?

There ARE buyers during the holidays!

I'm sure you'd be skeptical. But statistics form the US Census Bureau and US Department of Housing and Urban Development announced that in November 2017 alone, 733,00 new houses were sold to home buyers. And while the graphs show a downtrend towards the end of the year compared to Spring and summer home sales, the fact remains that there are buyers who are looking for homes during the holidays.

These are the people who are looking to start a new career in a different city by January or people who have recently sold their homes and need to find a new home to move into. December is also a prime month to move because most movers, brokers, and home inspectors are quite often available to attend to the limited number of buyers. Also, a great deal of buyers intently pursues buying this time so they could inspect the house for problems that are associated with the chillier parts of the year (i.e. problematic central heating system)

There are many reasons to motivate sellers to keep their homes listed and for buyers to look for homes during the holidays. Ultimately, it depends on the reasons why they are looking for or selling their home and whether it can be put off for another month or two to wait for Spring which is prime time for selling real estate properties.

Sources:

November 2017 Data on Houses Sold - https://www.census.gov/construction/nrs/pdf/newressales.pdf

Real Properties Investing

Many people are slowly regaining their trust on the stability of the US real estate market. It had a shaky start 

Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the supply and demand, number of days in the market, neighborhood trends, median price, square footage and more. We’d love to invite you to do the same, given that interest rates are at an all-time low. Those who are looking forward to getting their home loans are surely going to enjoy lower monthly payments. Investors are particularly going to like the fact that they can maximize profits in this condition.

Banks are (once again) lenient with lending

Most, if not all, banks tightened their lending process after the house price crash in 2007 and 2008. Fixed rate loans are once again possible for loan applicants who meet the minimum requirements which include, but are not limited to, being employed and keeping a good credit standing. When the market picks up again during Spring, banks are expecting to receive a growing number of mortgage loan applications . With the supply and demand scale being tipped towards the buyers, selling prices are also expected to increase which is good news for home owners looking to sell homes. As for home buyers, it is best to beat the competition by scouring listings before the influx of buyers come during Spring and Summer.

Foreclosures take front and center

With the over 191,000 foreclosures filed in the third quarter of 2017, real estate websites are full of foreclosed listings at the moment. Great news about foreclosed properties is that they're much more affordable than brand new houses. Some real estate investors find it profitable to buy foreclosed homes, then flip and sell it at a profit. As for first-time home buyers, buying foreclosed homes may lead to much lighter mortgage payments. However, they need to make sure that the repair expenses are within their buffer or your supposed mortgage savings will get drained by repair and maintenance contractors. 

Conclusion

Like any other investing product, profiting from real estate involves an intimate understanding of how the real estate industry works. Consider you risk appetite, too, before taking the plunge. Overall, fortune still favors the bold but it is best to tread with caution especially when dealing for big-ticket expenses and investments.