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Mortgage Rates
Currently Trending |
7 Day Mortgage
Rate Forecast |
This Week's
Potential Volatility |
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| NEUTRAL |
NEUTRAL |
Average |
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Realtor Report |
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Home Prices Continue to Rise:
We have yet another positive
housing report that shows continued growth in home prices. Data
provider CoreLogic says home prices increased 8.8% in May compared to a
year earlier. So, that means that the average homeowner enjoyed an 8.8%
appreciation rate over the past 12 months.
On a month-to-month basis, prices rose 1.2 percent from April to May.
But CoreLogic's monthly figures aren't adjusted for seasonal patterns,
such as warmer weather, which can affect sales.
Prices increased the most in Western states, including Hawaii, California and Nevada.
Last week, we reported that Pending Home Sales shot up 6.1% and the
continued gains in housing are helping more and more homeowners climb
back into positive equity territory. This new release supports pricing
gains from other reports such as the Case-Shiller Home Price Index
(+10.8% on a yearly basis) and the FHFA Home Price Index which showed a
yearly gain of +6.6%. Regardless of which reading is the most accurate,
consumers are now starting to understand that the likelihood that they
will loose money after purchasing their next home has diminished
greatly. |
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This Week's Mortgage Rate Summary |
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How Rates Move:
Conventional
and Government (FHA and VA) lenders set their rates based on the
pricing of Mortgage-Backed Securities (MBS) which are traded in real
time, all day in the bond market. This means rates or loan fees
(mortgage pricing) moves throughout the day, being affected by a variety
of economic or political events. When MBS pricing goes up, mortgage
rates or pricing generally goes down. When they fall, mortgage pricing
goes up. Tracking these securities real-time is critical. For more
information about the rate market, contact me directly. I’m among few
mortgage professionals who have access to live trading screens during
market hours.
Rates Currently Trending: Neutral
Rates last week worsened slightly.
The
overall
MBS
market
worsened last week
by -65 basis points, which may mean worsening mortgage pricing.
This Week's Rate Forecast: Neutral
The rate
markets
are
likely to
be
relatively
tame this
week
after a
news
filled
week last
week.
The
markets
will
continue
to digest
the
employment
numbers
from last
week that
were better
than
expected
with the
economy
adding
288K jobs
in June
and
unemployment
dropping
to 6.1%.
Which
simply
put, a
weaker
economy
is good
for rates
and a
better
economy
is bad
for
rates.
This Week's Potential Volatility:
Average
There
will not
be a lot
of
economic
news this
week to
move the
markets.
As a
result,
Sigma
Research
is not
looking
for a lot
of
volatility
in the
mortgage
rate
market
this week.
However,
international
tensions
are
always in
play for
the rate market.
Bottom Line:
If
you are looking for the risks and benefits of locking your interest
rate in today or floating your loan rate, contact your mortgage
professional to discuss it with them. |
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