Higher rates flip the homebuilders’ fortunes (again)
To combat higher mortgage rates, homebuilders have been cutting prices and buying down rates but they still have a lot of work to do.
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US mortgage rates rise for the third week in a row – CNN
- US mortgage rates rise for the third week in a row CNN
- That 3% Mortgage Keeps Getting Better As Interest Rates Rise Bloomberg
- Mortgage rates surge closer to 7% Yahoo Finance
This Is How They Get Ya!
This Is How They Get Ya! Bonds weathered the storm of a Treasury auction and the Fed meeting minutes today without any significant drama. Trading levels started the day stronger and managed to hold onto the gains by the 3pm close. At first glance, one might be tempted to be reassured by this turn of events. And while it could indeed by the case that today was but the first in a series of friendlier days ahead for bonds, we’d want to see at least 3 similar days, back to back to back, before getting too excited. Market Movement Recap 08:42 AM Inconsequentially stronger early in the overnight session. 2-way volatility in Europe. 10yr down less than 1bp at 3.947 and MBS up an eighth. 12:18 PM Some additional strength mid-morning, but leveling off now. MBS up a quarter point. 10yr yields down 4bps at 3.914 01:26 PM Slightly stronger after respectable 5yr Treasury auction. 10yr yield down 6bps at 3.896. MBS up 3/8ths+ 02:17 PM Losing some ground after Fed Minutes. 10yr down only 3bps at 3.923. MBS up only 6 ticks (.19). 03:42 PM Modest additional weakness. MBS up only 3 ticks on the day (.09) and 10yr yields down 2.3bps at 3.931.
15 Things That Disgust People The Most About Today’s Society
Have you been around long enough for something to bother you about modern society? You’ve got company. Someone recently asked, “What disgusts you the most about today’s society?” Here are the top-voted responses. 1. Overconsumption “Overconsumption,” one stated. “McMansions, pickup trucks more oversized than WWII tanks, warehouse stores, daily Amazon deliveries, restaurant servings that feed … Read more
Mortgage Rates Surging Back Toward 7%
On November 9th, 2022, the average lender was quoting 30yr fixed rates well over 7%. On day later, that figure dropped to 6.625%. It was one of the best individual days for rates on record and it was driven by an economic report that showed an unexpectedly large drop in inflation. Inflation and several other key sectors of the economy had pushed the Federal Reserve to hike rates at the fastest pace in decades. When it looked like the data might provide some relief, rates quickly moderated. Strangely (or so it seemed at the time), the Fed was highly reluctant to read too much into several months of generally more palatable data. They said it was too soon to draw any conclusions other than “it’s a start.” With that, markets hesitated to push longer term rates any lower until the data made an even stronger case of that. Unfortunately, the data since then has made a case for rates to turn around and head right back up toward previous highs. February has been particularly brutal in that regard and today was just the latest example. In fact, today’s reports aren’t typically regarded as top tier motivations for rate movement, but the market is so defensive to begin with that it doesn’t take much of a bump to create a snowball of momentum. The average 30yr fixed quote for a top tier scenario was around 6.75% on Friday and was up to 6.87% by Tuesday afternoon. More than a few lenders are already back to 7%.
The housing industry is on a mortgage rate roller coaster
The industry is on a roller coaster ride after mortgage rates shot up close to 7% following a drop to the low 6%-levels on the back of a resilient economy.Ă‚Â
Mortgage rates rise to nearly 6.3%, the highest level since 2008 – CNN
Mortgage rates rise to nearly 6.3%, the highest level since 2008 CNN
Living in a car to pay off debt
Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks with all levels of financial maturity and income.
I don’t spend lavishly on clothes, hair appointments, or travel. I drive a 12-year-old Honda Civic. I got into debt by trying different business investments, including real estate and selling refurbished tablets. I also took out a student loan that I really didn’t need but couldn’t turn down the money I automatically qualified for. Those are the main sources of my debt.
My debt payments began to total more than $1,100 a month. I moved in with an aunt and uncle to make ends meet. When they wanted to raise the rent, it was the straw that broke the camel’s back. I was fed up with my situation. I couldn’t even afford to rent a room anymore.
Bad News for Home Buyers: Mortgage Rates Inch Towards 7%, Highest Level in 2023
The typical mortgage now costs a homebuyer $2,300 a month, based on a 20% downpayment for a $359,000 home.
Mortgage Rates Little-Changed After Fed Minutes
The Federal Reserve directly controls the shortest term lending rates. Mortgage rates are dictated by longer-term bonds in the open market, but traders of those bonds are frequently influenced by the outlook for Fed rate hikes/cuts. The Fed officially hikes/cuts rates at 8 regularly scheduled meetings each year. The most recent hike took place on February 1st. It had nothing to do with the spike in mortgage rates that has take place since then. In fact, the spike in mortgage rates was driven by economic data beginning on February 3rd. This had an impact on the market’s expectations for future Fed rate hikes. In addition to the 8 regularly scheduled meetings, the Fed also releases the “minutes” from each of those meetings 3 weeks after they happen. Today brought the minutes from the Feb 1st meeting (the one that didn’t really matter because markets already knew what was going to happen). Given that all the recent rate drama happened AFTER the Fed meeting in question, there wasn’t much to glean from these meeting minutes. As such, it’s no surprise to see today’s rates very much in line with yesterday’s. The only downside is that yesterday’s rates were the highest in several months with the average lender quoting 6.87% on a conventional 30yr fixed. In the bigger picture, bond traders (the people who determine mortgage rates, among other things) are going to be cautious about pushing rates lower in any exciting way until new economic data makes a clearer case that inflation is subsiding and that the Fed’s restrictive policies are putting a dent in the economy.