Mortgage Watch Report

By Uncategorized February 10, 2023
38 Monserrat – Victor and Jeannie Gonzalez

Mortgage Rates in general have been in a correction mode since last Friday.  They say “a picture paints a thousand words”, so let’s begin this market recap with an image of the 10yr Treasury Yield (*if you watch the 10yr treasury on Yahoo Finance or CNBC every day, you WILL know the directing of mortgage rates).

Below is the last 5 trading day of the US 10yr Savings Bond Yield. As you can see, rates are heading in 1 direction which is UP!  (*Reminder, when traders sell bonds, the bond prices fall, and yields rise due to the inverse algebraic relationship).

Let’s take a look at the graph below to see what is driving this rapid change towards higher rates.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

After hitting the lowest levels in more than 4 months last week, they popped quickly back to the highest levels in a month!  So, what happened?  During a light week for economic data release, investors to their cue from the Fed, and Chairman Powell did not paint a rosy picture by making it loud and clear that MORE WORK needs to be done to bring down inflation.  In the speech this Tuesday EMPASIZED that due to strength in the labor markets, bringing down inflation will be TOUGHER than originally thought, and that the process will take a SIGNIFICANT period of time with more rate increases and holding higher for longer than originally anticipated.

Bottom Line: this is an unfortunate U-turn in the lower rates we have seen over the last couple of weeks.  Application spiked and activity was really picking up, but I am afraid we have turned a corner and praying it’s short lived.  In the meantime, have all your pre-approved clients meet with their Loan Officer to see HOW this impacts their buying power.

Here are lockable rates at of 10:00am PST.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOURCE & AUTHOR |

Keith Murphy Branch Manager – Essex Mortgage NMLS #330827

Direct: 714-309-1140

Apply: www.GoTeamMurphy.com

About the Author
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Tim Morissette, REALTOR®

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 46 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals.  This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 26 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.