BrokerScience Mortgage Marketing Blog

Mortgage Rate Outlook for May 16, 2012

Trace Richardson — Wed, 16 May 2012 01:51:00 +0000

Yesterday saw mortgage rates take a breather from their downward path, despite breaking all time historic lows last week and mounting downward pressure in the form of European debt issues.

The political and economic turmoil in Europe that market watchers have been observing for months has begun to frenzy as Greece looks to possibly stop using the Euro.

Economic Data Beats Expectations

Fast forward to today and some very positive data has come out this morning that may exert upward pressure on mortgage rates.

Housing Starts and Permits data for April was released this morning and it came in better than expected. The data showed 717 thousand units when the market had been expecting 680 thousand housing units. Generally speaking, news that shows health in the US economy is bad for mortgage rates.

A second piece of data also beat expectations this morning. The Industrial Production report came in with a figure of 1.1%, which is more than twice the figure of .5% that the market was expecting and the highest level reported in over a year.

What’s Ahead For Mortgage Rates Today?

This afternoon will see the Federal Reserve Open Market Committee (FOMC) release minutes from their past meeting. Market watchers will be looking closely for any signals or verbiage that might provide insight into future FOMC actions in regard to stimulus.

As we get more economic data being released each week, the health of the data is taken into consideration by the FOMC and can play a role in their decision as to whether they will employ more or less stimulus in the future.

Mortgage Outlook for the Week of May 14, 2012

Trace Richardson — Mon, 14 May 2012 00:16:00 +0000

Last week saw mortgage rates move again into all time record low territory, only to retrace higher slightly later in the week. Mortgage rates experienced downward pressure due to the news regarding the JP Morgan trading loss of over $2 billion dollars. This was good for mortgage rates because bad news tends to push investors out of stocks and equities and into bonds.

When bonds have an increase in buyers, it tends to increase their price (supply and demand) with has an inverse effect on mortgage rates. In other words, bad news is good for mortgage rates!

The Week Ahead: It’s All About Europe

The markets have kept a close eye on Europe for a good number of months. The major concern as each country comes forward with its own debt issues is that as these issues spread to countries like Italy and Spain, it gives more credence to a bigger issue with the European Union as a whole. This can and will negatively affect the United States.

As with all bad news coming out of Europe, the latest bombshell that Greece may be ditching the Euro is front and center news on the world stage. How this plays out can absolutely move mortgage rates. The messier it gets, the more downward pressure there will be on mortgage rates. Mortgage rates just may break the new historic lows set last week.

Economic Calendar for Week of May 14, 2012

Monday - N/A
Tuesday - Consumer Price Index, Retail Sales, Housing Market Index
Wednesday - FOMC Minutes, Housing Starts, Industrial Production
Thursday - Jobless Claims, Philadelphia Fed Survey
Friday - N/A

Where are Mortgage Rates Now?

We’re in a fast moving market with lots of volatility that can come into play at any given time of the day, depending on which news stories are moving the market. This means rates can and do change many times per day. For up to the minute mortgage rate quotes, please call us directly or request a rate quote using the form above.

In addition to an up to the minute mortgage rate quote, we can also answer any mortgage related questions you might have. Additionally, we can help you understand which program options there are and which ones make the most sense for your needs.

Mortgage Recap for the Week Ending May 11, 2012

Trace Richardson — Fri, 11 May 2012 00:28:00 +0000

Mortgage rates improved moderately today, marking a week that has once again brought mortgage rates to new all time historic lows.

News regarding the JP Morgan trading loss of $2 billion dollars has helped rates improve a bit today. Europe has also played a role throughout the week in pushing mortgage rates down as we learn more and more about the issues occurring there. Bad news in Europe is good for mortgage rates in the United States.

All Time Historic Mortgage Rates: Should I Lock?

Right now is a great time to lock in a near historic low mortgage rate. We can not only help you lock in a historically low mortgage rate for your refinance or home purchase, we can also help answer any mortgage questions you might have.

We can also help you understand what loan programs exist and which program makes the most sense for your needs with customized mortgage strategy.

Mortgage Rates: The Week Ahead

There is a slew of economic data coming out next week that have the power to move mortgage rates. The following reports that are being released next week will give market watchers more insight into the health of the US economy and have the power to move the markets: Consumer Price Index, FOMC Minutes, Jobless Claims and Housing Starts.

Mortgage Outlook for the Week of May 7, 2012

Trace Richardson — Mon, 07 May 2012 01:05:00 +0000

Last week saw the Non-Farm Payrolls report, otherwise known at the Jobs Report, greatly disappoint with data showing that in April, 115,000 jobs were created as opposed to the 160,000 new jobs that were expected.

Since jobs are a major engine in the economy that create economic growth, any data related to the health of employment in the US has the power to move markets and mortgage rates, in this case, downward.

Expect this disappointing data to continue to put downward pressure on mortgage rates moving forward for an extended period of time. Prior to this data being released, mortgage rates had stayed in a very tight trading range in previous weeks.

Since there is little in the way of US based data coming out this week, news originating out of Europe over the weekend means Wall Street will once again be keeping eyes on Europe this week.

Once Again: Europe Back in the Forefront

This weekend saw incumbent politicians in Europe in France and Greece and replaced with less conservative, more radical parties. The austerity issues that were already prevalent combined with new governments that may not be as strict in enforcing austerity is a huge concern for market watchers.

Wall Street is keeping a close eye on all events originating out of Europe. Expect any more negative news to put even more downward pressure on mortgage rates, possibly pushing them to even newer historical lows.

Economic Calendar for Week of May 7, 2012

Monday - N/A
Tuesday - Redbook
Wednesday - N/A
Thursday - International Trade, Jobless Claims
Friday - Producer Price Index, Consumer Sentiment

Record Low Mortgage Rates: Where Are Rates Now?

In a fast moving market, mortgage rates can change frequently. Even on a slow day mortgage rates may change several times. To get up to the minute mortgage rates, please call us directly or request a rate quote using the form above.

We can also help answer any questions you have about which loan program(s) make the most sense for your needs and put together a mortgage strategy that makes the most sense for your goals.

Mortgage Update for Friday, May 4, 2012

Trace Richardson — Fri, 04 May 2012 02:38:00 +0000

So far things have been fairly quiet and stable with mortgage rates this week in anticipation for today’s high risk event, The Jobs Report.

Otherwise known as the Non-Farm Payrolls report, the Jobs Report is released on the first Friday of every month and provides analysts and market watchers with very important data about the health of the US employment situation and unemployment rate.

Since jobs are a major engine in the economy that create economic growth, any data related to the health of employment in the US has the power to move markets and mortgage rates.

Disastrous: Jobs Report Data Released

At 8:30 AM EST this morning, Jobs Report data was released showing that in April, 115,000 jobs were created. Wall Street was expecting a number closer to 160,000 new jobs created being created. This is a huge disappointment to the markets, sending mortgage rates downward and marks two straight months of disappointing Jobs Report numbers.

The unemployment rate decreased to 8.1 percent in April from 8.2 percent in March. This is also very bad news. Why? The main reason this number has decreased is because 69,000 people were removed from the labor-force because they have been deemed to have stopped making any attempt to find work, which means they are no longer “unemployed” and have been removed from the unemployment calculation, thus lowering the unemployment rate!

This disappointing data also gives Wall Street more reason to believe the FOMC (Federal Open Market Committee or FED) will have more reason to implement QE3 (a third round of quantitative easing) in the future. A healthy economy has less of a need for QE3 and would likely not see a third round of easing.

Record Low Mortgage Rates: Where Are Rates Now?

We can also help answer any questions you have about which loan program(s) make the most sense for your needs and put together a mortgage strategy that makes the most sense for your goals.

Mortgage Basics: The Pre-Approval Process

Trace Richardson — Wed, 02 May 2012 05:08:00 +0000

Many homebuyers are not aware that getting pre-approved for a home loan might just be what gets you them a new home faster. Before you start looking at homes, consider taking the time to talk with a lender or two about getting pre-approved for a mortgage so speed up the closing process and prevent missing the chance to purchase a home if you don’t have the mortgage approval necessary but other bidders do.

What’s Involved in Pre-Approval?

Before you can be pre-approved for a home loan, your credit, income, and debt history will all be checked to ensure you’re a good candidate for financing. This is also where you determine how much money you’re able to bring to the table as a down payment. The process itself is relatively quick and after these checks are completed, you’ll know how much can borrow.

Once you’re pre-approved, you generally have a period of 1 to 3 months to look for and secure a home before further action needs to be taken. You have the option of locking in your mortgage rate during this time as well, so even if mortgage rates up before you purchase, your lender will still provide you with the better rate.

No matter what amount you’re pre-approved for, you’ll see that getting financing early has a number of benefits.

The Advantages of Getting Pre-Approved

With pre-approval in hand, you’ll be seen as a serious buyer. Sellers often see someone with pre-approved financing as a more attractive candidate than a buyer who submits an offer without having secured a loan. After your offer is accepted and you’re under contract, your pre-approval will also help the rest of the purchase process go smoothly. You won’t need to worry about shopping around for a mortgage or approving for a mortgage as you are trying to close one of the most important deals of your life.

Getting a pre-approval is part of planning ahead when you intend to become a homeowner. Follow some of these steps to help insure you have a smoother home purchasing experience.

Mortgage Outlook for the Week of April 30, 2012

Trace Richardson — Mon, 30 Apr 2012 06:55:00 +0000

Last week saw mortgage rates mostly unchanged in a very tight range hovering right above all time historic lows.

The FOMC met and left the FED funds rate at 0.00% – 0.25% and expressed some mixed concerns about health of the economy. There was also some other economic data that came out, the most important being GDP (Gross Domestic Product) data. GDP came out a bit on the disappointing side, which is good for mortgage rates as it bad economic news can sometimes exert downward pressure on rates.

Mortgage Rates and the Week Ahead

Expect market watchers to continue keeping an eye on Europe this week, especially in light of Spain’s recent downgrades. Any negative news coming out of Europe will put downward pressure on mortgage rates in the United States and significantly bad news could push mortgage rates to new historic lows.

There are a handful of economic reports coming out this week with the potential to move mortgage rates. As with news coming out of Europe, any significantly bad news, especially relating to employment in the US, has the potential to push mortgage rates into new historic low territory.

Economic Calendar for Week of April 30, 2012

Monday - Personal Income and Outlays
Tuesday - ISM Mfg Index, Construction Spending
Wednesday - ADP Employment Report
Thursday - Jobless Claims, Productivity & Costs
Friday - Employment Situation

Mortgage Rates Are Near All Time Historic Lows, Should I Lock?

Chances are that locking in your mortgage rate now makes a lot of sense. Not only can we help you lock in a mortgage rate that is near all time historic lows, we can help explain which loan options exist and which ones might make the most sense for your situation.

Since mortgage rates can change many time per day, if you would like an up to the minute quote, feel free to find out where rates are using the free rate quote request form above or by calling us directly.

Mortgage Summary For the Week Ending April 27, 2012

Trace Richardson — Fri, 27 Apr 2012 08:56:00 +0000

This week has been marked by historically low mortgage rates and one of the tightest trading ranges of the year.

Mortgage rates changed very little throughout the week, ending the week very near to where they started. This means that if you have not already locked in your rate at the current historically low levels, this may be your chance.

GDP (Gross Domestic Product) Data Disappoints

US Gross Domestic Product data for the first quarter of 2012 was released this morning. The data showed a disappointing growth rate of 2.2%, which was below expectations of 2.5%. Negative data like this can exert downward pressure on mortgage rates and will continue to cast doubt on the strength of the economic recovery that market watchers are monitoring.

Analysts are attributing the lower than expected GDP to less corporate investment occurring and less build-up of inventories.

Mortgage Rates and the Week Ahead

As always, market watchers will continue to keep an eye on Europe next week, especially in light of Spain’s recent downgrades. Any negative news coming out of Europe will put downward pressure on mortgage rates in the United States.

There are a handful of reports with the potential to move mortgage rates next week, Monday: Personal Consumption and Expenditures, Wednesday: ADP Employment Change and finally Thursday: Weekly Jobless Claims.

The FED Speaks: FOMC Meeting Update

Trace Richardson — Wed, 25 Apr 2012 12:39:00 +0000

Today the Federal Open Market Committee or FOMC voted on the FED funds rate (the rate at which banks lend money to each other over night) and released it’s thoughts on the state of the economy moving forward. The FOMC voted to keep the target range for the federal funds rate at 0% to 1/4% with only Federal Reserve President dissenting.

The FED funds rate at been at its current level since late 2008.

The FED on the Economy

The FOMC stated that since it last met in March, the economy has been expanding moderately. They also believe that labor market conditions have improved in recent months while the unemployment rate has declined, while remaining elevated. The FOMC sees household spending and business fixed investment continuing to advance but believe the housing sector is still depressed despite some signs of improvement.

The FOMC also referenced mentioned that, “Strains in global financial markets continue to pose significant downside risks to the economic outlook.” This means the FOMC believes that the debt insolvency woes of Europe, specifically Greece, Spain and Italy, continue to pose a risk to the US Economy.

From the FOMC Press Release:

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.

How Did the FOMC Meeting Affect Mortgage Rates Today?

Today was volatile with mortgage rates mixed. The problem is that mortgage rates can change many times per day, especially on volatile days like today. To get the most accurate mortgage rate quote, please submit a rate request using the form above or call us directly.

Mortgage Updates for the Week of April 23, 2012

Trace Richardson — Mon, 23 Apr 2012 07:25:00 +0000

Last week concluded with mortgage rates moving in an extremely tight trading range, with rates closing the week near all time historic lows. The economic data that was released did little to move the markets and things were fairly quiet on the Europe front.

What’s Moving Mortgage Rates This Week?

Economy

We will see a lot of activity this week in terms of economic data being released that can move mortgage rates. In addition to GDP data for the 1st quarter, reports relating to jobless claims and new home sales will be released.

More importantly, there is a two day FOMC (Federal Open Market Committee) meeting being held, which will be followed by a press conference being held by FED chairman Ben Bernanke. Since there have been more and more signs that the recovery that was believed to be in progress is slower than first thought, the market will be listening intently to any comments coming from the FOMC statement. Any news that indicates the economy is improving can push mortgage rates higher, while any less than good news has the potential to put downward pressure on mortgage rates.

European Debt Crisis

As usual, market watchers will be keeping an eye on Europe this week for any news about potential debt insolvency issues in Spain and Italy. As is the case with any economic news that has the potential to affect the US, good news coming from Europe as the potential to move mortgage rates up, while bad news has the potential to move mortgage rates down.

Economic Calendar for Week of April 23, 2012

Monday - N/A
Tuesday - S&P Case-Schiller HPI, New Home Sales, Consumer Confidence
Wednesday - *FOMC Forecasts, *Chairman Press Conference, Durable Goods Orders
Thursday - Jobless Claims, Pending Home Sales Index
Friday - GDP, Consumer Sentiment

Where Are Mortgage Rates Now?

Mortgage rates can change many times per day. To get an up to the minute mortgage rate quote, simply fill out the fast rate quote form above or call us directly.

Not only can we help you get a fast and free mortgage rate quote, but we can also answer any mortgage related questions you might have. Additionally, we can put together a mortgage strategy that makes the most sense for your needs.

Should I lock my rate? This is also a popular question. While the likely answer is yes, please call us directly to get to make sure whether or not locking a mortgage rate in near all time historic lows is the best move for your given mortgage scenario.

Mortgage Wrap Up for April 20, 2012

Trace Richardson — Fri, 20 Apr 2012 03:01:00 +0000

This week concluded with mortgage rates moving in an extremely tight trading range, still near all time historic lows. There were a few pieces of economic data released this week, but nothing that caused any major movement for mortgage rates.

Market watchers are still keeping an eye on Europe for any news about potential debt insolvency issues in Spain and Italy.

What’s Moving Mortgage Rates Next Week?

We will see some decent activity next week in terms of economic data being released that can move mortgage rates. In addition to GDP data for the 1st quarter, reports relating to jobless claims and new home sales will be released.

Additionally, there is a two day FOMC (Federal Open Market Committee) meeting being held, which will be followed by a press conference being held by FED chairman Ben Bernanke. Any of these events have strong potential to move mortgage rates.

Where Are Mortgage Rates Now?

Mortgage rates can change many times per day. To get an up to the minute mortgage rate quote, simply fill out the fast rate quote form above or call us directly.

Need to lock in a rate? Call us directly to lock your mortgage rate now.

Mortgage Rate Update for April 18, 2012

Trace Richardson — Wed, 18 Apr 2012 10:04:00 +0000

Today, mortgage rates stabilized near the all time historic lows they reached last week. The stock market saw the biggest of the rally of the year yesterday, which moved mortgage rates up a bit. Profit taking in the stock market looks to have played a role in mortgage rates recovering some of the ground lost yesterday.

Forces With the Potential to Move Mortgage Rates This Week

The Europe Factor

Europe and any more signs of potential debt insolvency in Spain and or Italy is the wildcard for market watchers.

Good or bad news coming out of Europe has the potential to move mortgage rates up or down. Look for upward pressure on mortgage rates if good news comes out of Europe and downward pressure on mortgage rates should bad news come out of Europe.

Economic Data

Tomorrow will see the release of the weekly unemployment report from the Department of Labor, the Existing Home Sales report March and the LEI or Leading Economic Indicators report, which is released later in the day.

Market watchers are also awaiting next weeks FOMC announcement, which always has the potential to move the markets and mortgage rates.

Mortgage Rate Quote Questions?

If you’re wondering where mortgage rates are right now, please call us directly or use the rate request form above. Since mortgage rates change many times per day, we can give you an up to the minute quote and even pre-qualify you if necessary.

Have questions about mortgage loan options that will best fit your needs? We can answer any questions you might have in addition to putting together a mortgage strategy that makes the most sense based on your needs.

Mortgage Outlook for the Week of April 16, 2012

Trace Richardson — Mon, 16 Apr 2012 06:11:00 +0000

Last week saw mortgage rates finishing near all time historic lows. Mortgage rates moved down on worldwide fears about the debt issues in Europe becoming more serious than previously thought and economic data coming out of the US that indicated that the US economy may not be as healthy as previously thought.

More global concerns also came to the forefront in the from of China’s first quarter GDP being weaker than expected.

The sum of all these issues was that mortgage rates moved close to all time historic lows, with the 15 Year Fixed Mortgage actually setting an new all time low at 3.88%, according to Freddie Mac.

Where Are Mortgage Rates Now?

Since mortgage rates can change many times throughout the day, you can call us directly or request a mortgage rate quote using the form above to get up to an up to the minute quote. We can also answer any other mortgage questions you might have and discuss the best loan for your needs. Have questions? We can help.

Economic Calendar for the Week of April 16, 2012

Monday - Retail Sales, Housing Market Index
Tuesday - Housing Starts, Industrial Production
Wednesday - n/a
Thursday - Jobless Claims, Philadelphia Fed Survey
Friday - n/a

Mortgage Rates Move Close To Historic Lows

Trace Richardson — Fri, 13 Apr 2012 05:00:00 +0000

Mortgage rates have finished the week near all time historic lows… amazing. Mortgage rates have been pushed down to their current levels over the past week by growing fears about the debt issues in Europe and economic data coming out of the US that indicates the economy may not be as healthy as previously thought.

Today more global concerns came to the forefront in the from of China’s first quarter GDP showing growth of 8.1%. This figure is lower than the anticipated growth of 8.4% anticipated by market.

Earlier this week, 15 Year Fixed Mortgage rates hit all time historic record lows. The average rate for a 15 Year Fixed Mortgage fell to 3.88% yesterday according to Freddie Mac.

Where Are Mortgage Rates Now?

Great question. Since mortgage rates can change many times per day, the best way to get an up to the minute quote is to call us directly or to fill in a fast rate quote using our form above.

We can also help answer any mortgage questions you might have. Wondering what loan options are out there? Wondering what your credit score is or want to lock in a low rate now? We can help.

Mortgage Update for April 12, 2012

Trace Richardson — Thu, 12 Apr 2012 05:46:00 +0000

Market watchers continued eyeing Europe today as the debt woes in Spain appear to be worsening. More bad news or even the prospect of bad news being possible will help expert downward pressure on mortgage rates.

As the situation in Spain deteriorates, there is concern that we could see the same issue arise in France and Italy. This is big news for everyone, not just Europe and it can and will affect mortgage rates in the United States. The fear is that the United States could potentially be pulled into a global recession, a worst case scenario.

15 Year Mortgage Rates Hit All Time Record Lows!

15 Year Fixed Mortgage rates hit all time historic record lows today. The average rate for a 15 Year Fixed Mortgage fell to 3.88% today according to Freddie Mac. Interested in locking in all time historic lows? Contact us now to get a fast quote or fill out the free rate quote form above.

More Economic Data Released

Two major pieces of data were released this morning.

This morning saw the Department of Labor release data showing that weekly initial unemployment claims increased by 13,000 from the week before to 380,000 claims.

Data was also released this morning for the Producer Price Index or PPI, came in with a 0.3% increase. This was a fairly flat number, so it is unlikely that this played a major role in any mortgage rate movement today.