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 Today saw mortgage rates improve today, albeit in a marginal way. This has been a busy week with European / Greek drama, a Facebook IPO, new historic record low mortgage rates and a release of the FOMC (Federal Open Market Committee) minutes from their last meeting.
Europe Dominates Headlines Again
We started the week with news of a possibility of a Greek exit from the Euro and market watchers keeping a close eye on the European situation all week long. Month after month Europe has dominated headlines since each piece of news could give clues to other underlying weaknesses present in the European Union. Spain and Italy are the two countries most are most concerned about, however. If they fall, the Euro Zone as a whole may fall as well.
The good news is that bad news coming from Europe exerts downward pressure on mortgage rates and Europe is a large part of why mortgage rates have repeatedly set new historical lows.
FOMC Releases Minutes from its April Meeting
The FOMC released its April Minutes earlier this week. These minutes chronicle the 8 annual FOMC meetings and are released three weeks post meeting. The minutes helped push mortgage rates lower this week due to the verbiage that indicated more easing will like take place and that they will be “highly accommodative” in their position toward easing monetary policy.
Highlights from the FOMC Minutes:
- Labor market conditions have improved in recent months
- The unemployment rate has declined but remains elevated
- The Committee seeks to foster maximum employment and price stability
- The Committee expects economic growth to remain moderate over coming quarters and then to pick up gradually
- The Committee expects to maintain a highly accommodative stance for monetary policy
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.
Where are Mortgage Rates Now After This Hectic Week?
The truth is that there is a very good chance they will have changed from the time we’ve written this till the time you read it. That’s ok though, we can give you an up to the minute quote via the fast quote form above or if you call us directly. We can also answer any other questions you might have about loan programs and which loan makes the most sense for your needs, whether you are purchasing a home or refinancing an existing home.
Tags: Europe, FOMC, Mortgage News, Mortgage Rates
 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.
Tags: debt crisis, Europe, FOMC, Mortgage News, Mortgage Rates
 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.
Tags: Europe, Mortgage News, Mortgage Rates
 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.
Tags: Europe, Mortgage News, Mortgage Rates
 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.
Tags: Europe, Mortgage News, Mortgage Rates
 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?
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.
Tags: jobs report, Mortgage News, Mortgage Rates, unemployment rate
 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.
Tags: Mortgage News, Mortgage Programs, Mortgage Rates, pre-approval
 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.
Tags: Europe, Mortgage News, Mortgage Rates
 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.
Tags: GDP, Mortgage News, Mortgage Rates
 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.
Tags: Ben Bernanke, FOMC, Mortgage News, Mortgage Rates
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