Published May 19, 2013
Mortgage rates have been highly sensitive to the economic data in recent weeks. Daily volatility has been high even from reports which usually produce a limited reaction. The balance of the data released this week was stronger than expected, which caused mortgage rates to end a little higher. It is very important for us to know when a deal gets under agreement as that timing of the rate lock could change what your clients can lock into from day-to-day. We’ve seen rates fluctuate by .125% – .25% within 24 hours lately! This indicates to me the markets don’t know which way to go as any little news garners a big (sometimes unwarranted) reaction.
Following a much improved Employment report on May 3, mortgage rates have been in an upward trend for most of this month. The trend continued to start the week when the April Retail Sales report was stronger than expected. While the consensus was for a small decline, a slight increase was reported. Mortgage rates finally received some relief on Thursday, primarily due to the Jobless Claims report. Weekly Jobless Claims jumped to 360K, far above the consensus of 330K. After three weeks with readings below 350K, investors were disappointed by the results, which called into question the recent strength in the labor market.
The housing market data released this week was mostly positive. While April Housing Starts declined from the multi-year highs seen in March, mostly due to multi-family units, Building Permits jumped to the highest level since June 2008. Building Permits are a leading indicator of future building activity. In another positive sign, the May NAHB Home Builders confidence index increased significantly.
TRIDENT MORTGAGE RATE SHEET
Some commentary sourced from MBSQuoteline.com
Rates remained unchanged from last week’s rate sheet but there was some more pressure on rates which could move them higher this week. A number of the Federal Reserve board members are due to speak this week. This could move markets as they continue to provide information into unwinding the programs they put in place for the economic recovery. The methods they choose to use to wind down and the timing will be critical for interest rates.
Well enough of that boring stuff…most importantly, HAPPY MOTHER’S DAY to all our amazing Moms that take care of so much for all of us and still find a way to be awesome Realtors! Amazing & Awesome are quite the understatements!
TRIDENT MORTGAGE RATE SHEET 5-14-2013
Published April 21, 2013
While it has been a few chilly spring days, the markets remain hot! Interest rates back down to the lowest levels we’ve seen all year coupled with strong purchase activity throughout our lending area. While it was a rough week for the stock market, mortgage markets were fairly quiet. Economic conditions continue to allow for historic interest rates even as the consensus is that the overall recovery is well underway. Most signs point to steady growth at a modest rate this year. Modest economic growth with low inflation is the sweet spot for mortgage rates. While rates may bounce around in the coming weeks they should remain historically low.
In other more important news…
LOVE YOUR PARK DAY – signup ASAP, free T-shirt, good people, and clean parks – what more could you want on a Saturday in May (MAY 11th, 9am – 1pm!)
BROAD STREET RUN – similar to last year we’ll have some post-race food, drinks, & cold beer for any PFR/Trident runners. We’ll try to setup in the same spot as last year which was in FDR park almost directly across Broad St. from the Wachovia Center. Stop by and grab some grub and a congrats from Fox & Roach Charities!
TRIDENT MORTGAGE RATE SHEET 4-21-2013
Published April 13, 2013
Tags: Mortgage, Philadelphia
After the last few weeks of an improving rate sheet, we’ve seen a pause with rates remaining steady this week. In the economic reports released this week, inflation remained low and the economic growth data was mixed. Mortgage rates ended the week with little change. We saw retail sales come in a slower than expected (retail sales activity makes up a staggering 70% of our entire economy here in the US!) coupled with a jobs report that was weaker than expected. This softer economic news kept rates at their lowest points we’ve seen in well over two months.
Another round of THANK YOUs are in order as well – through the first 3 months of the year our center city mortgage team is writing the mortgage for almost 60% of the home buyers that come through Prudential Fox & Roach’s doors. An incredible feat that you folks deserve the credit for. I know we always bore you with this “capture” talk, but to put this statistic in perspective; most affiliated mortgage companies average about 20% of the mortgages for their real estate’s buyers. As you can tell, we’re very proud of this and have you to thank. THANK YOU!
Trident Mortgage Rate Sheet 4-13-2013
In most important news…from your Charity Committee….PLEASE come out and join us on 5/11 for Love Your Park day. Below is the flyer with the info you need. We have about 20 people signed up and our goal was at least 50 to represent Prudential Fox & Roach & The Trident Group on this great day for the city. SIGN UP sheets are throughout all the offices!
Never say Never…admittedly I thought we were in a rising interest rate environment for the long haul due to the overall economic improvement happening the last few months, but we’ve managed to get another week or two of rates moving back down. We are back to rates that have not been seen since late January. North Korea’s lunacy coupled with some disappointing job reports late this week are the main reasons for this movement in our favor. Not exactly a bad thing for our buyers right in the middle of the spring market! I am still hesitant to believe this will remain for the extended period of time we’ve seen in the last few years, but until the bond market is proven otherwise we should be in a good position to continue to lock all-time low fixed rates for the foreseeable future. A position, just a few weeks ago, that I would not have claimed.
TRIDENT MORTGAGE RATE SHEET 4-6-2013
Published March 23, 2013
It is amazing how interconnected this world is. Cyprus is a tiny country in the middle of the Mediterranean Sea, but they are a big tax haven for many Europeans & foreigners. Due to this influence their economic issues have been widely publicized in the last two weeks. They have become yet another European country facing severe issues in their banking system. The news was seen as favorable for interest rates with smart money moving back into safer investments, ultimately holding rates at their current levels as last week. A big item the Cyprus news offset, and that likely would have sent rates higher, was the news from The Federal Reserve.
The Federal Reserve’s statement gave a little more indication on when they may begin to slow the billions of dollars they have been flooding the markets with to keep the economy on track for the recovery we’ve seen strengthen the last few months. This news would have normally pushed rates higher, but the news out of Cyprus offset this impact.
In much simpler news – the housing market remains in full comeback mode! Housing’s strength has been put on the cover of the Wall Street Journal this week, the cover of last month’s Money magazine, and the front page of many other big city newspapers. These headlines will continue to bolster people’s confidence in housing even further. In turn, this should also bring out many new buyers that should feel good about investing in real estate and that the days of depreciation are over.
TRIDENT MORTGAGE RATE SHEET 3-23-2013