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Si bien las vacaciones tienden a ser un momento de reflexión, el cambio definitivo del calendario hacia un nuevo año puede inspirarte a poner sus miras en alto.
Ve más al gimnasio. Estar menos en su teléfono. Y, si es como muchos estadounidenses, controle las deudas de sus tarjetas de crédito, de una vez por todas.
El verano de 2023 marcó un nuevo máximo para la deuda total de tarjetas de crédito de los estadounidenses, con saldos que superaron el billón de dólares por primera vez en la historia, según el Banco de la Reserva Federal de Nueva York.
Este tipo de deuda puede resultar excepcionalmente estresante, como algo de lo que no puedes salir adelante por mucho que lo intentes. Aunque no existe una solución rápida para las deudas de tarjetas de crédito, la consolidación puede ser una estrategia financiera inteligente que simplifica sus deudas y reduce la cantidad de intereses que paga.
Aquí hay cinco señales de que la consolidación puede ser la medida financiera correcta a realizar en 2024.
1. Tienes un puntaje crediticio bastante bueno.
Su puntaje crediticio es uno de los factores más importantes al consolidar deudas de tarjetas de crédito, porque un crédito sólido lo ayudará a calificar para un producto de consolidación de deudas.
Tiffany Johnson, una planificadora financiera certificada con sede en Athens, Georgia, dice que el primer paso que da con sus clientes es pedirles que obtengan sus informes crediticios de las tres principales agencias de crédito (Experian, Equifax y TransUnion) y verifiquen si hay errores (en inglés). Puede obtener su informe de crédito semanalmente de forma gratuita en AnnualCreditReport.com.
“Si tienen un puntaje crediticio razonable, yo diría que al menos 600, es entonces cuando comenzaremos a buscar opciones de consolidación de deuda para ellos”, dice.
Aunque algunos productos de consolidación están disponibles para prestatarios con puntajes crediticios inferiores a 600, las tasas de interés tienden a ser similares o incluso superiores a sus deudas actuales, por lo que probablemente no tendrá sentido consolidar, dice Johnson. Una tasa similar significa que perderá ahorros en intereses y es posible que no pueda salir de sus deudas más rápido.
2. Estás haciendo malabarismos con varios saldos de tarjetas de crédito
Si le cuesta gestionar muchos saldos, la consolidación puede ser útil porque combina varias deudas en una, generalmente a través de una tarjeta de transferencia de saldo o un préstamo de consolidación de deuda.
Con una transferencia de saldo, transfiere todas las deudas de sus tarjetas de crédito a la tarjeta de transferencia de saldo, por lo que le queda un solo saldo. Si opta por un préstamo de consolidación de deuda, utilizará los fondos del préstamo para liquidar sus tarjetas de crédito, dejándole solo el pago mensual del préstamo.
Esto puede hacer que un montón de deudas desordenados parezcan más manejables, ya que solo tienes un pago en lugar de varios.
Johnson dice que busca si sus clientes tienen más de tres tarjetas de crédito con diferentes fechas de pago, montos mínimos de pago y tasas de interés antes de recomendar la consolidación.
3. Está realizando pagos mensuales mínimos, pero no ve ningún progreso
Si siente que no puede salir de la deuda de sus tarjetas de crédito, es porque no solo está lidiando con la deuda en sí, sino también con los intereses que se acumulan cuando mantiene un saldo.
En 2022, a los consumidores se les cobraron 130 mil millones de dólares en intereses y tarifas, la cantidad más alta jamás medida por la Oficina para Protección Financiera del Consumidor, que publicó el informe en octubre de 2023. Los intereses representaron $105 mil millones de esa suma.
La consolidación puede ayudar a romper la trampa de los intereses altos, especialmente si opta por una tarjeta de transferencia de saldo, ya que estas tarjetas tienen períodos promocionales sin intereses que pueden durar hasta 21 meses. No pagará intereses durante este tiempo incluso si tiene un saldo.
Los préstamos de consolidación de deuda cobran intereses, pero si califica para una tasa de interés más baja que la tasa promedio de sus tarjetas de crédito, aún así ahorrará dinero.
Si su deuda es la mitad o más de sus ingresos brutos, o le llevará más de cinco años pagarla, es posible que desee explorar opciones de alivio de deuda en lugar de consolidación. Por ejemplo, trabajar con una agencia de asesoría crediticia acreditada para implementar un plan de administración de deuda puede ayudarlo a pagar sus deudas a una tasa de interés reducida.
4. Está motivado por una línea de meta clara
La psicología detrás del pago de la deuda es tan importante como la logística, dice Allison Sanka, asesora financiera acreditada con sede en Berwyn, Pensilvania.
Si prefiere saber la fecha exacta en la que quedará libre de deudas, la consolidación puede brindarle un punto final claro, especialmente si opta por un préstamo de consolidación de deuda. Estos préstamos tienen tasas de interés y plazos de pago fijos, por lo que siempre que realice los pagos a tiempo, sabrá la fecha exacta en la que estará libre de deudas.
Pero un préstamo no es la única opción. Sanka dice que la mayoría de sus clientes tienen éxito sin consolidar utilizando los métodos de bola de nieve o avalancha, en los que se abordan las deudas una por una, comenzando con la deuda más pequeña (bola de nieve) o la que tiene la tasa de interés más alta (avalancha).
“Hago que mis clientes paguen primero el saldo más bajo si pueden liquidarlo muy rápido”, dice Sanka. “Es bastante gratificante psicológicamente ver cómo se aborda la deuda en su forma original”.
5. Ha llegado a la raíz de tu deuda
Tanto Sanka como Johnson enfatizan en abordar el origen de su deuda antes de consolidarla. Si salta este paso, la consolidación no importará, ya que probablemente te endeudará nuevamente, dicen.
Sanka recomienda trabajar hacia atrás para descubrir qué provocó su deuda en primer lugar. Por ejemplo, si tiene dificultades para gestionar gastos inesperados, es importante crear un fondo de emergencia. Incluso $500 pueden significar la diferencia entre poder cubrir una factura sorpresa o tener que volver a entrar en el ciclo de la deuda, dice.
Johnson aconseja a los clientes que no utilicen sus tarjetas de crédito para gastos discrecionales como salir a comer, ya que esos costos varían de mes a mes y son difíciles de presupuestar. En su lugar, vincule los gastos fijos a su tarjeta de crédito para que se le cobre la misma cantidad cada mes. Entonces es menos probable que el extracto de su tarjeta de crédito le pille desprevenido, afirma.
“Solo necesitas algo que te mantenga alejado de la rueda de hámster de usar la tarjeta de crédito para todo lo que se te presente”, dice Sanka.
Este artículo fue publicado originalmente en NerdWallet en inglés.
National mortgage rates sunk on all loan terms from a week ago, according to rate data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all fell.
While it’s expected that rates will gradually come down this year, there may be some fluctuations.
At its Jan. 31 meeting, the Federal Reserve announced it would hold off changing rates, but could cut rates in the future. At their March 20th meeting, the Fed will update their outlook on rates. Rate changes affect many areas of the economy, including the 10-year Treasury, a key benchmark for fixed-rate mortgages.
“Where the 10-Year Treasury yield goes, mortgage rates will follow,” says Ken Johnson of Florida Atlantic University. “In roughly the last two months, the 10-year Treasury yield is up 50 basis points. Depending on the source, the 30-year mortgage rate is up 48 basis points. Treasurys’ path remains a coin toss at this point.”
Rates last updated March 11, 2024.
The rates listed above are Bankrate’s overnight average rates and are based on the assumptions shown here. Actual rates listed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, March 11th, 2024 at 7:30 a.m.
Today’s 30-year mortgage rate trends down, -0.17%
The average rate you’ll pay for a 30-year fixed mortgage today is 6.95 percent, a decrease of 17 basis points over the last week. Last month on the 11th, the average rate on a 30-year fixed mortgage was higher, at 7.14 percent.
At the current average rate, you’ll pay principal and interest of $661.95 for every $100,000 you borrow. That’s down $11.43 from what it would have been last week.
There are several benefits to choosing a fixed-rate mortgage when buying new house, including predictable mortgage payments.
Read more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate declines, -0.13%
The average rate for the benchmark 15-year fixed mortgage is 6.47 percent, down 13 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $869 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much faster.
5/1 ARM rate eases, -0.05%
The average rate on a 5/1 adjustable rate mortgage is 6.43 percent, ticking down 5 basis points over the last 7 days.
Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.43 percent would cost about $627 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Current jumbo mortgage rate dips, -0.10%
The average jumbo mortgage rate is 7.03 percent, down 10 basis points from a week ago. This time a month ago, the average rate was higher at 7.20 percent.
At today’s average jumbo rate, you’ll pay a combined $667.32 per month in principal and interest for every $100,000 you borrow. That’s $6.74 lower, compared with last week.
Mortgage refinance rates
30-year mortgage refinance rate slides, -0.17%
The average 30-year fixed-refinance rate is 6.94 percent, down 17 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.18 percent.
At the current average rate, you’ll pay $661.28 per month in principal and interest for every $100,000 you borrow. That’s a decline of $11.43 from last week.
Where are mortgage rates going?
With inflation still above the Fed’s 2 percent goal and the job market holding strong, the Fed isn’t likely to cut rates at its March meeting.
“The Federal Reserve will not cut interest rates in the first half of this year, in my view,” says Lawrence Yun, chief economist of the National Association of Realtors, “but rate cuts of three, four or even five rounds will be possible in the second half of the year as rent measures will be much more well-behaved.”
The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.
What these rates mean for you and your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
The median annual wage for speech pathologists in the U.S. is $84,140, according to the latest data from the U.S. Bureau of Labor Statistics (BLS). But salaries can vary significantly, ranging from less than $56,370 to more than $126,680.
How much money you can make as a speech-language pathologist may depend on several factors, including the industry in which you work, the level of education you attain, and where you live.
Here’s a look at what speech pathologists do and how they are paid.
What Is a Speech Pathologist?
Speech pathologists are health care providers who evaluate, diagnose, and treat children and adults who are experiencing communication difficulties because of speech, language, or voice problems. They also may treat clients who are struggling with developmental delays, memory issues, or who have trouble swallowing.
Speech pathologists typically work in a school, hospital, or rehabilitation/nursing home setting, or they may open their own practice. They often work as part of a multi-disciplinary team that also provides occupational therapy, physical therapy, and other types of care.
All speech pathologists must be licensed. While the qualifications can vary by state, a master’s degree from an accredited university is often required, along with several hours of supervised clinical experience, a Certificate of Clinical Competence in Speech-Language Pathology (CCC-SLP) from the American Speech-Language Hearing Association (ASHA), and a passing grade on a state exam.
Depending on the work you plan to do, other certifications may be required by your employer, including a teaching certificate if you practice in an educational setting. 💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.
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How Much Do Starting Speech Pathologists Make a Year?
Speech-language pathologists with one to three years of experience earned a median salary of $74,000 in 2023, according to the ASHA’s SLP Health Care Survey Salary Report. The job site ZipRecruiter lists Massachusetts, Washington, Colorado, Delaware, and Illinois as the states where speech pathologists currently earn the highest entry-level salaries.
Recommended: High-Paying Vocational Jobs for 2024
What Is the Average Salary for a Speech Pathologist?
So how much can you expect to make per year if you stay with a career as a speech pathologist?
The 2023 SLP Health Care Survey Salary Report found that several factors can have an impact on speech pathologists’ earnings, including job duties, the type of facility where they’re employed, if they work full- or part-time, if they’re paid a salary vs. hourly wage or on a per-visit basis, and whether they work in a region with a higher cost of living.
Here are the average annual salaries for speech pathologists by state.
Average Speech Pathologist Salary by State
State
Average Annual Salary
Alabama
$81,140
Alaska
$90,279
Arizona
$83,423
Arkansas
$68,644
California
$94,592
Colorado
$87,186
Connecticut
$80,836
Delaware
$82,742
Florida
$66,895
Georgia
$75,588
Hawaii
$87,406
Idaho
$90,774
Illinois
$80,442
Indiana
$85,185
Iowa
$80,542
Kansas
$75,362
Kentucky
$72,228
Louisiana
$73,799
Maine
$91,996
Maryland
$80,211
Massachusetts
$90,970
Michigan
$72,246
Minnesota
$84,527
Mississippi
$80,048
Missouri
$77,637
Montana
$82,167
Nebraska
$78,728
Nevada
$85,362
New Hampshire
$88,375
New Jersey
$89,146
New Mexico
$84,483
New York
$98,990
North Carolina
$75,258
North Dakota
$89,084
Ohio
$82,280
Oklahoma
$76,241
Oregon
$89,146
Pennsylvania
$90,666
Rhode Island
$82,571
South Carolina
$76,844
South Dakota
$84,193
Tennessee
$78,555
Texas
$90,424
Utah
$78,424
Vermont
$97,120
Virginia
$81,864
Washington
$110,930
West Virginia
$70,022
Wisconsin
$87,933
Wyoming
$86,602
Source: ZipRecruiter
Recommended: Cost of Living by State
Speech Pathologists Job Considerations for Pay and Benefits
If you decide speech pathology is the right fit for you, you may not need to worry about job security. The BLS is projecting that employment of speech pathologists will grow by 19% over the next decade, which is much faster than the average for all occupations combined.
Therapists are needed more than ever to assist aging baby boomers and others who’ve experienced a stroke, hearing loss, dementia, or other health-related issues. And there is an increasing need for those who wish to work with kids and adults on the autism spectrum. Therapists are also needed to help children overcome speech impediments and other communication issues.
A career as a speech pathologist also can offer a competitive paycheck. While the BLS reported the median weekly earnings for all full-time workers was $1,145 in the fourth quarter of 2023, the average weekly paycheck for a speech pathologist was $1,652, according to ZipRecruiter.
Of course, the pay and benefits you receive will likely be tied to the job you choose. If you’re employed by a public school district in a rural community, for example, you may not earn as much as a department head at a large health facility in a major city. Still, you can expect to receive benefits similar to other workers in the health-care field, including health insurance, a retirement plan, vacation pay, etc.
As you weigh your career decisions, consider using online tools to ensure you’re staying on track with your personal and financial goals. A money tracker app, for example, can help you create a budget and keep an eye on your spending and your credit score.
Pros and Cons of a Speech Pathologist’s Salary
Probably the biggest downside of choosing a career as a speech pathologist is the amount of time and money it can take just to get started. After getting your bachelor’s degree, it may take two or more years to complete your master’s degree and clinical training. Depending on the career path you choose, you also may need to earn certain certifications along with your state license to practice. And it may take some time to pay off your student debt.
On the plus side, you’ll be helping others in a career that can be extremely fulfilling, and you can earn a comfortable living while doing so.
Here are some more pros and cons to keep in mind.
Pros:
• As a speech pathologist, you will be helping others and, in many cases, changing lives.
• You’ll be working and networking with other professionals who will help you keep learning.
• You may be able to design a schedule that fits your needs (especially if you have your own practice).
Cons:
• You may have an overwhelming caseload, and the work could be frustrating and stressful at times.
• You may have to work nights and weekends (even with a job in education or in private practice).
• The paperwork can be daunting and may require working overtime or taking work home to keep up. 💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
The Takeaway
Working as a speech pathologist can be professionally rewarding. Not only is the field growing, it tends to pay well, too. However, you can expect to make a substantial investment in time and money before you get the job you want. And how much you earn — especially when starting out — can depend on several factors, including the specialty you choose, who your employer is, and where you’re located.
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FAQ
Can you make $100,000 a year as a speech pathologist?
Yes. While the median annual wage for speech-language pathologists in the U.S. is $84,140, the highest 10% of earners in this category make six-figure salaries.
Do most speech pathologists enjoy their work?
Speech-language pathologists came in at No. 3 on U.S. News & World Report’s ranking of “Best HealthCare Jobs” for 2024 and No. 10 on the news site’s list of “100 Best Jobs.” While the career was rated above average for stress, it received high ratings for both flexibility and opportunities for upward mobility.
Is it hard to get hired as a speech pathologist?
According to the U.S. Bureau of Labor Statistics, the job outlook for speech pathologists is good, and should be solid for the next decade. If you get the proper education and training, and you have a passion for helping others, it shouldn’t be too difficult to find work in this profession.
Photo credit: iStock/akinbostanci
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10yr yields are now decisively below the levels seen BEFORE the last CPI report (the one that caused a jump from the 4.1’s to the 4.3’s). This has been accomplished without any shockingly downbeat econ data, and without the market ramping up bets on a friendlier rate trajectory from the Fed. In other words, it’s some combination of supply/demand technicals (Treasury auction composition and Fed QT tapering effects) and, more importantly, a legitimate belief that economy is not at risk of reigniting inflation concerns. On that note, Friday’s jobs report is in a position to undo much of the recent improvement if it makes a strong counterargument. The recent data and the bond market response are essentially daring the jobs report to surge.
Jobless Claims
217k vs 215k f’cast, 217k prev
Continued Claims
1906k vs 1889k f’cast, 1898k prev
08:37 AM
Stronger on data and ECB announcement. 10yr down 3.9bps at 4.069. MBS up 5 ticks (.16) before accounting for roughly 2 ticks (.06) of illiquidity.
11:49 AM
Gains erased in moderate, steady volume, and before Powell testimony. MBS up only 2 ticks (.06) and 10yr unchanged at 4.108.
02:37 PM
Weakest levels just before 1pm and holding modest gains since then. 10yr down half a bp at 4.104. MBS up 3 ticks (.09).
03:30 PM
Near best levels in MBS, up an eighth of a point. 10yr down 1.6bps at 4.092. Shorter-term Treasuries are doing even better.
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
Average mortgage rates fell moderately for a third consecutive day yesterday. But don’t get too comfortable. The two economic reports that are most consequential for those rates are both due over the next few days. And they could change everything.
First thing, it was looking as if mortgage rates today might fall, perhaps modestly. But that could change later in the day.
Current mortgage and refinance rates
Find your lowest rate. Start here
Program
Mortgage Rate
APR*
Change
Conventional 30-year fixed
7.1%
7.12%
-0.06
Conventional 15-year fixed
6.46%
6.49%
-0.08
Conventional 20-year fixed
7.03%
7.05%
-0.01
Conventional 10-year fixed
6.48%
6.51%
-0.11
30-year fixed FHA
6.11%
6.77%
-0.13
30-year fixed VA
6.43%
6.54%
-0.08
5/1 ARM Conventional
6.29%
7.36%
Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock your mortgage rate today?
Are the steady falls in mortgage rates we’ve been seeing in recent days the start of the sustained downward trend I’ve been predicting? It’s possible. But I doubt it.
I’m not expecting that to begin properly for at least a couple of months and perhaps longer.
So, for now, my personal rate lock recommendations are:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCKif closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So, let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data are mostly compared with roughly the same time the business day before, so much of the movement will often have happened in the previous session. The numbers are:
The yield on 10-year Treasury notes ticked down to 4.08% from 4.09%. (Good for mortgage rates. However, yields were rising this morning.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were rising this morning. (Bad for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices inched down to $78.53 from $78.60 a barrel. (Neutral for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices edged up to $2,174 from $2,158 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — increased minimally to 75 from 74 out of 100. (Bad for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic, post-pandemic upheavals, and war in Ukraine, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today look likely to move downward. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Find your lowest rate. Start here
What’s driving mortgage rates today?
Today
This morning, we finally saw the February jobs report (aka the employment situation report). And it might prove less bad for mortgage rates than one might fear.
Yesterday, I described the report’s three headline figures. Here they are again with this morning’s actual figures shown in bold:
Nonfarm payrolls (the number of new jobs created that month) — Today’s actual: 275,000. Markets were expecting that to be 198,000, well down from January’s 353,000
Unemployment rate — Today’s actual: 3.9%. Markets were expecting that to be 3.7%, unchanged from January
Average hourly wages — Today’s actual: 0.1%. Markets were expecting a 0.2% rise, much lower than January’s 0.6% increase
You can see that the unemployment rate and average hourly earnings numbers would typically be good for mortgage rates. But markets tend to react to nonfarm payrolls primarily. And The Wall Street Journal (paywall) reported the data under the headline, “Hiring Boom Continues With 275,000 Jobs Added.”
Still, the news wasn’t as dire as it could have been: Two out of three ain’t bad. So, I’m hoping that markets won’t punish mortgage rates too badly.
One caveat on today’s report — and other important ones. Markets don’t always respond in the ways we’ve come to expect. Sometimes, there’s a delayed reaction. Other times, investors might discover something hidden in the minutiae of the report that changes their response. And, occasionally, they just act perversely.
Next week
Just as this week has been dominated by this morning’s jobs report, next week is likely to pivot on Tuesday morning’s consumer price index (CPI).
We’re also due February’s retail sales figures on Wednesday and various inflation and other reports. But the CPI’s likely to rule next week.
Don’t forget you can always learn more about what’s driving mortgage rates in the most recent weekend edition of this daily report. These provide a more detailed analysis of what’s happening. They are published each Saturday morning soon after 10 a.m. (ET) and include a preview of the following week.
Recent trends
According to Freddie Mac’s archives, the weekly all-time lowest rate for 30-year, fixed-rate mortgages was set on Jan. 7, 2021, when it stood at 2.65%. The weekly all-time high was 18.63% on Sep. 10, 1981.
Freddie’s Mar. 7 report put that same weekly average at 6.88% down from the previous week’s 6.94%. But note that Freddie’s data are almost always out of date by the time it announces its weekly figures.
Expert forecasts for mortgage rates
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the four quarters of 2024 (Q1/24, Q2/24 Q3/24 and Q4/24).
The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were updated on Feb. 12 and the MBA’s on Feb. 20.
Forecaster
Q1/24
Q2/24
Q3/24
Q4/24
Fannie Mae
6.5%
6.3%
6.1%
5.9%
MBA
6.9%
6.6%
6.3%
6.1%
Of course, given so many unknowables, both these forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
Find your lowest mortgage rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Verify your new rate
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Verify your new rate. Start here
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
Check your refinance rates today. Start here
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also, pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
For the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
In fact, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Verify your new rate. Start here
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. This gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements, or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders — and it could save you thousands in the long run.
Time to make a move? Let us find the right mortgage for you
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.
While the proposed tax credit appears unlikely to get through a Republican-controlled Congress, Biden has the ability to use the CFPB to push his housing policy agenda.
An ‘unwelcome surprise’
A CFPB blog post on Friday states that families closing a mortgage “often get an unwelcome surprise: closing costs that all too often are full of junk fees.”
According to the CFPB, one measure of closing costs is total loan costs, which includes title insurance, credit report, appraisal, and origination. These costs increased by 21.8% from 2021 to 2022, reaching nearly $6,000, per the CFPB post. And, as they are fixed, they have an “outsized impact on borrowers with smaller mortgages,” it added.
The post provoked a strong reaction from the Mortgage Bankers Association (MBA). Its president and CEO, Bob Broeksmit, stated that the use of the term junk fees is “illogical” and contradicts the White House’s definition, which is “lack of disclosure of the fee being charged.”
“The fees mentioned are clearly disclosed to borrowers well before a home purchase on forms developed and prescribed by the Dodd-Frank Act and the CFPB itself,” Broeksmit said in a prepared statement.
Broeksmit added that the Bureau’s “TRID” rule in 2015 and other rules imposed in 2020 reformed mortgage disclosures and customers’ ability to read these documents.
What’s the CFPB monitoring?
The CFPB said it will closely examine three topics: discount points, lenders’ title insurance, and credit reports.
Discount points have surged in recent years as mortgage rates have risen and competition has gotten more fierce. They were used by 50.2% of home purchase borrowers in 2022, compared to 32.1% in 2021. And, despite lenders selling points to reduce rates, it “may not always save borrowers money, however, and may indeed add to borrowers’ costs,” the CFPB said.
In another criticism of housing finance practices, the CFPB said lenders force borrowers pay for their title insurance, and the amount “is often much greater than the risk.”
Regarding credit reports, HousingWire reported in December that lenders’ prices would jump in 2024. The CFPB said that the “credit reporting industry is highly concentrated” and that “these steep increases in a market that lacks competition and choice warrant further scrutiny.”
“In the coming months, the CFPB will continue working to analyze mortgage closing costs, seek public input, and, as necessary, issue rules and guidance to improve competition, choice, and affordability,” the blog post reads. “We will also continue using our supervision and enforcement tools to make it safer for people to purchase homes and to hold companies accountable.”
Broeksmit has argued for years that it’s the CFPB that has made mortgage lending more expensive for consumers. The agency announces “new legal obligations without formal process or deliberation, enforcing novel and untested legal theories, and making it very difficult for firms to understand their legal obligations,” he said in 2022. A year later he described housing policy coming from Washington, D.C. as “extreme overregulation.”
In response to the CFPB’s latest “baffling” blog post, he noted that the agency has already imposed limits on lenders’ fees. The services covered, such as appraisals and flood hazard certifications, bring efficiency to the mortgage market and benefit consumers. The Federal Housing Administration (FHA), Department of Veterans Affairs (VA), Fannie Mae, and Freddie Mac also require these services.
The MBA, according to him, is also concerned “regarding rising costs of the tri-merge credit reports” and shares the “desire to help more Americans become homeowners.”
“MBA is eager to continue working with the Biden administration in these efforts but will vigorously oppose politically motivated proposals that only increase regulatory costs, reduce competition, or otherwise make it more difficult for Americans to get the credit necessary to achieve homeownership,” Broeksmit said.
He pointed to the marked improvement in sentiments toward selling, which could signal an influx of existing home listings in the near future. He also noted a lingering optimism among consumers that mortgage rates might see a decline over the next 12 months, which could potentially energize the housing market even more. “If their expectations … [Read more…]
PARIS, March 10, 2024 /PRNewswire/ — Lahome, a home decor brand renowned for its fusion of fashion aesthetics and cozy washable rugs, has made waves at Paris Fashion Week. By participating in the fashion show of INTERDEE, an affordable luxury independent fashion brand, Lahome demonstrated a harmonious fusion of stylish elegance and comfortable living.
Non-QM, RE Agent Monitoring, Mandatory Sales Products; The White House and Closing Costs; Webinars and Training
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Non-QM, RE Agent Monitoring, Mandatory Sales Products; The White House and Closing Costs; Webinars and Training
By: Rob Chrisman
Fri, Mar 8 2024, 10:40 AM
“Horses have lower divorce rates. It’s because they are in stable relationships.” Here on the Central Coast of California, there are plenty of horses but few disasters, wars, or big insurance claims. But in Ukraine there have been 566,000 property damage reports, and the government has launched eRecovery, an app based on the government’s digital platform Diia that may provide a template for future recovery efforts worldwide. It has already processed 83,000 compensation claims for damaged or destroyed property and has paid out over 45,000 claims, with 566,000 property damage reports filed through December. Volume isn’t a disaster for lenders, but it isn’t stellar either, and today’s TMC Rundown features Femi Ayi, VP Branching Operations at Revolution Mortgage, discusses using technology to make some tough choices. Curinos tells us that February 2024 funded mortgage volume increased 5 percent YoY and increased 14 percent MoM. The average 30-year conforming retail funded rate in February 2024 was 6.79, a shade lower than January but 62 basis points higher than the same month last year. (Found here, this week’s podcast is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. Hear an interview with the STRATMOR Group’s Jim Cameron on Maslow’s hierarchy of needs as it pertains to mortgage companies.)
Lender Broker Services, Products, and Software
“How much are you spending on Agency LLPAs? The Conforming product for NOO and second homes can add upwards of 4 percent to your cost and prevent you from accessing the deepest possible pool of borrowers. More than 160 sellers on the MAXEX platform have eliminated their spend on Agency LLPAs for investment properties and second homes by utilizing our mandatory bulk, and best-efforts flow, Conforming program. Access multiple securitization and portfolio investors with a single contract and no LLPAs on NOO and Second-home properties using the same Agency guidelines you’re used to, without the fees. High Balance loans also available. Schedule time with our team today to learn more.”
As the U.S. prepares to spring forward this weekend, the long-awaited spring market has finally arrived, marked by March ’23 showcasing peak LO activity with $129B in volume. As 2024 is predicted to bring $2 trillion in mortgage origination volume, now is the time to prepare for new business opportunities by cultivating and reinforcing your real estate agent referral partnerships. Unsure of where to begin? Mobility Market Intelligence (MMI) offers full visibility into any agent’s activity, including instant new listing alerts. Learn more here.
TPO, Broker, and Correspondent Product News
“Luxury Mortgage Corp. is thrilled to announce that we’ve recently enhanced and expanded over 100 facets of our Non-QM underwriting guidelines within the past two weeks. We’re eager to share these exciting updates with you! These enhancements include improvements for allowing certain borrowers to exclude the PITIA from their departing residence. We’ve expanded the eligibility criteria for non-occupant co-applicants, allowing blended income and assets up to 90 percent LTV. Additionally, our Bank Statement qualification options have been widened to encompass five (5) methods, one of which allows for a 1-year P&L supported by only two months of bank statements. To learn more about these updates, we invite you to explore a list of key improvements by clicking here. If you are not an approved broker, now is the perfect time to become one. Click here to initiate the process of becoming an approved wholesale broker and prepare to take your production to the next level.
Attribution: Yesterday’s Commentary reported that, “The real estate investment trust affiliated with Angel Oak Companies posted a $28.6 million profit in the fourth quarter. For the full year of 2023, the REIT generated a profit of $33.7 million; all but forgotten is 2022’s reported loss of $187.8 million….” This information and story came from Inside Mortgage Finance, and we apologize for not noting this yesterday.
President Biden and… Closing Costs?
Anyone in our business knows that “housing costs” are complex and dependent on a myriad of factors, including supply and demand, demographics, local and state zoning and permit costs, construction demographics, builder choices, etc.
“President Biden believes housing costs are too high, and significant investments are needed to address the large shortage of affordable homes inherited from his predecessor and that has been growing for more than a decade. During his State of the Union Address, President Biden will call on Congressional Republicans to end years of inaction and pass legislation to lower costs by providing a $10,000 tax credit for first-time homebuyers and people who sell their starter homes; build and renovate more than 2 million homes; and lower rental costs. President Biden also announced new steps to lower homebuying and refinancing closing costs and crack down on corporate actions that rip off renters.”
Webinars, Podcasts, and Training Next Week
It’s hard to believe a woman couldn’t get mortgage without a co-signer until 1974! In celebration of Women’s History Month, join MGIC for The Remarkable Rise of Women in the Mortgage Industry webinar on Wednesday, March 13. Hear guest speaker Patty Arvielo, CEO of New American Funding, discuss co-founding one of the largest independent mortgage lenders in the nation while fostering growth for women. MGIC’s Paula Maggio, EVP – General Counsel & Secretary, will lead the moderated discussion. Register now!
(A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.)
Today, Friday, March 8, is this week’s episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Today’s is co-hosted by Femi Ayi, VP Branching Operations at Revolution Mortgage.
Come see another industry first product by Insellerate with its new AI assistant. See how you can leverage AI now to create better customer experiences, drastically increase conversion, increase loan officer efficiency, market in new ways, and have insights into your customer like never before. On Tuesday March 12th Insellerate will be hosting a free webinar that will show case an industry first AI product.
National MI University’s March Webinars! Mastering LinkedIn for Mortgage Professionals – Session Three with Brynne Tillman – March 12th at 3pm ET. Top Loan Officer Strategies to Win NextGen Homebuyers with Kristin Messerli – March 13th at 2pm ET. Your Leadership DNA with Andrew Oxley – March 14th at 2pm ET. The Psychology of Sales with Rebecca Lorenz – March 26th at 2pm ET.
Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Next week watch attorney James Brody field questions on repurchases and compliance issues.
The Federal Housing Finance Agency (FHFA) announced it will host the next session in its series of property insurance symposiums on March 13.
Optimal Blue’s Hedging 101 webinar is back on March 14, Noon CT. Whether you’re considering a transition to mandatory or you’re already hedging, you won’t want to miss this highly informative and directional webinar.
Free, Live, virtual training for all USDA lenders and real estate agents, Top Tips for Confident Credit Underwriting. Watch this live training event in Microsoft Teams on Thursday, March 14, 2:00 pm – 3:00 pm ET.
Partner with the pioneer in non-QM wholesale lending to elevate your brokerage. Don’t miss Angel Oak’s March webinars crafted exclusively for broker originators. March 14th, 1PM EST, a Non-QM Webinar on DSCR Loans, March 21st, 1PM EST, a Non-QM Webinar on Bank Statement Loans.
Register for the Independent Community Bankers of America’s (ICBA) national convention, Thursday, March 14 through Sunday, March 17 at Orlando World Center Marriott.
The largest, most comprehensive educational and networking event for the nation’s community bankers. Attendees will explore industry trends and best practices while tackling top-of-mind community banking issues through dynamic general sessions; learning lab sessions, roundtables, and panels; and view demos featuring the latest innovation developments during the ICBA ThinkTECH Showcase and Expo Hall featuring more than two hundred vendors.
Capital Markets
Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.54 trillion in February, including $30.9 billion of total MBS issuance, leading to $11.4 billion of net growth. February’s new MBS issuance supports the financing of more than 96,000 households, including more than 44,000 first-time homebuyers. Approximately 69.8 percent of the February MBS issuance reflects new mortgages that support home purchases. The February issuance includes $30 billion of Ginnie Mae II MBS and nearly $894 million of Ginnie Mae I MBS, including nearly $816 million in loans for multifamily housing. For the 2024 calendar year to date, Ginnie Mae has supported the pooling and securitization of more than 91,000 first-time homebuyer loans.
Turning to the overall fixed-income markets, the yield curve is moving toward “normal convexity” as dovish rhetoric from Federal Reserve officials this week has buoyed investor sentiment. The Fed may cut interest rates three times this year. Or twice. Or once. Or maybe not at all. Day two of Fed Chair Powell’s congressional testimony yesterday brought him before the Senate Banking Committee, where he reiterated that the Fed is close to the necessary confidence that will make it appropriate to begin dialing back the level of restriction.
But the FOMC is in no rush: Stronger than expected economic data in the first two months of the year has given the Fed ample breathing room to wait for further evidence that inflation is returning to the 2 percent target. Powell also confirmed policymakers are well aware of the risks of cutting too late. Cleveland Fed President Mester echoed Chairman Powell’s view that the FOMC will likely be in position to lower rates this year.
Improved TBA (“to be announced” MBS, used for hedging pipelines) pricing yesterday was primarily a result of the ECB’s adjusted inflation forecasts despite no change in rates. ECB President Lagarde’s remarks after maintaining current rates for the fourth consecutive meeting raised speculation that a rate cut could be on the horizon for June. Domestically, continuing jobless claims came in slightly lower than expected, which contributed to favorable bond market pricing.
What’s the rate & term refi possibility? We’ve seen a reduction in mortgage rates from nearly 8 percent at the end of October to slightly under 7 percent currently. The total percentage of American homeowners that currently have refi incentive of at least 50 basis points has risen from 0.03 percent to just 2.1 percent ($102.2 billion out of about $4.97 trillion in UPB).
Today brought the February payrolls report. Nonfarm payrolls increased 275k versus 190k expectated and 353k previously. The unemployment rate was 3.9 percent when it was seen holding steady at 3.7 percent. Average hourly earnings were tame at +.1 percent (+4.3 year-over-year) versus expectations of increasing 0.3 percent month-over-month and 4.5 percent year-over-year versus 0.6 percent and 4.5 percent in January. Later today brings remarks from New York Fed President Williams, the only scheduled Fed speaker. After the employment data Agency MBS prices and the 10-year yielding 4.04 after closing yesterday at 4.09 percent. The 2-year is at 4.44.
Employment and Transitions
“Ross Mortgage Corporation, celebrating 75 years as a trusted lender, invites you to join a legacy where success, innovation, and an unparalleled customer experience are the foundation of everything we do. With our unmatched support system, including personalized marketing strategies and tools to highlight your achievements and community impact, you’ll have everything you need to succeed. We are a sales organization led by a salesperson, where our President understands the challenges you face and is there every step of the way along with our caring team to support your growth and success. Ross is large enough to provide a state-of-the-art technology stack, but small enough where your voice is always heard. If you are a Loan Officer or Branch Manager who would like to learn about joining our winning team, please reach out to our President, Tim Pascarella at 248-259-4614. Licensed in AL, FL, GA, IL, IN, KY, MD, MI, MN, NC, OH, PA, SC, TN, TX, VA, WI, and the District of Columbia.”
It’s difficult to imagine a mortgage company remaining stable and debt-free for 32 years, especially in today’s market. But that’s exactly what Churchill Mortgage has achieved. Founder and CEO, Mike Hardwick believes a key component of running a successful business is doing what’s right for its people. In 2013, Mike transformed Churchill Mortgage into an Employee-Owned company, and as such, the team has navigated challenges together and emerged even stronger through the last few years. This year, Mike has promoted Matt Clarke to President as a natural next step to support continued growth. “I am excited and proud to promote Matt to President and Chief Operating Officer of Churchill Mortgage. He is an extraordinarily gifted thinker who has a unique ability to pull people together and make them stronger as a team,” said Hardwick. “I am honored to step into the role as President. Churchill’s people inspire me to keep growing and that’s exactly what we’re doing. We’re pushing ourselves to never stop improving and evolving. I’m excited to see what we achieve in the next 32 years,” said Clarke.
In Montana, Evergreen Home Loans is excited to introduce our new leadership team, reinforcing our dedication to serving the local community with unparalleled mortgage solutions. Leading the charge is Pete Edgecomb as Regional Manager, bringing a strategic vision and robust market acumen. Brett Evertz steps in as Area Manager, ready to foster growth and enhance our service offerings. At the branch level, Kelly Duray and Crystal Eckerson assume the roles of Branch Managers, combining their deep industry knowledge and local insights to deliver personalized client experiences. Evergreen is committed to empowering homeownership with a suite of innovative products. Our focus on local decision-making and comprehensive product offerings positions Evergreen as the premier choice for both seasoned teams and individuals aiming to advance their careers in the Montana market. Join us in shaping the future of home financing. To see all job listings visit: Mortgage Careers
AmeriHome wired out the news that Jim Furash, CEO of AmeriHome, has decided to retire from the company as of March 1st and that Josh Adler, Chief Investment Officer, has been promoted to CEO of AmeriHome. In addition to Josh’s new role as CEO, the company also announced that Dan Blanding, EVP Capital Markets, has been promoted to Chief Investment Officer. Congratulations all the way around!
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