Mortgage Loans

7/05/2016

LOWEST Mortgage EVER 10 year CRASHES

MBS Recap | 3:59PM CALL C G now for a savings mortgage quote (949) 784-9699

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10yr yields traded well into the 1.3's, surpassing previous low of 1.381
No specific motivation at home or abroad, though there are several supporting actors
It's the big-picture "global growth concerns" that get us in the vicinity of all-time lows
More focused considerations push us around once we're there.

If you think about all-time lows in rates as a far away city, "global growth concerns" (GGC, to save space) would be like the plane that gets you there and the day-to-day economic headlines would be like the rental car you drive around town. I bring this up because in these cases, we find ourselves talking about "all-time lows" as if they're somehow driven by the shorter-term considerations.
For instance, there was weak data in China overnight, a big drop in oil, more weakness in UK currency, slumping stocks, and ultimately weak data in the US this morning. Did these things cause today's all-time lows? Not even remotely! They merely pushed markets around a town they wouldn't even be in if it wasn't for the jumbo jet (aka, GGC).
MBS continue to underperform the massive bond market rally, which is pretty normal when Treasuries are pushing all-time lows or even if they're just making big moves lower. One thing to keep in mind is that MBS prices aren't even close to being back to 2012 levels. That's a factor of the Fed's decaying MBS portfolio among other things and it's been happening very slowly, steadily, and predictably since markets worked out the initial volatility surround the 2012 QE3 announcement. All that to say, yes, 10yr yields hit new all-time lows, but we're not even close to expecting mortgage rates to follow suit without MBS gaining about another point in Fannie 3.0s.

Today's Alerts and Updates

7/02/2016

Find Your Garden Zone

Orange County has a couple different USDA hardiness zones
Mine is 10a
Here's a link that is interactive
to the United States Department of Agriculture Map
enter your zip code

http://planthardiness.ars.usda.gov/PHZMWeb/Default.aspx

6/30/2016

Low Rates

If you locked your rate in the last two weeks

JUMP SHIP and come over to lower rates

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http://wpo.st/VYgj1

The stock market’s plunge following the Brexit vote was bad for most people’s retirement accounts but good for those looking to refinance their mortgage. Even as the market has started to recover its losses and the flight to bonds’ safety has eased, home loan rates remain down.

Despite the low rates, growing pessimism over the direction of the economy is spilling over into home-purchase sentiment. Pending home sales – those deals that are under contract but have not closed – declined in May, marking their first annual drop in nearly two years. Rates may be low, but not many people are rushing out to make a big purchase such as a home with so much economic uncertainty. The group most likely to benefit from low rates are homeowners seeking to refinance.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average plunged to 3.48 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.56 percent a week ago and 4.08 percent a year ago. Since the beginning of the year, the 30-year fixed rate has plummeted nearly 50 basis points. (A basis point is 0.01 percentage point.) It has fallen 18 basis points in the past month alone.

The 15-year fixed-rate average sank to 2.78 percent with an average 0.4 point. It was 2.83 percent a week ago and 3.24 percent a year ago.

The five-year adjustable rate average dropped to 2.70 percent with an average 0.5 point. It was 2.74 percent a week ago and 2.99 percent a year ago.

[Mortgage applicants may benefit from changes in credit-scoring system]