MORTGAGE WATCH

Mortgage Rates had another decent day on Thursday with MBS prices modestly better terms compared to Wednesday.  Improvements continue to arrive in fairly small doses, but they’ve been adding up.  You’d have to go back nearly a month to March 12th to see anything definitively lower (although it’s worth noting that today’s rates are also roughly in line with those seen on March 25th).

This morning MBS/Bonds are pulling back this morning, although quickly closing the opening GAP. We are testing the upper level of the range and thus far we have not broken through which has led to the pull back. The news this morning was unfriendly to bonds as the PPI index came in red hot! Traders now fear that if the wholesale rate of inflation was too hot, perhaps the Consumer price index will also be too strong as well.  Higher prices without wage growth means consumers consume less. Remember your Econ 101 class?

Bottom Line: recommending clients lock in the short term, but see a relief rally in the coming weeks with better rates to come.  However, ultimately, it will be up to course of the pandemic and the economy to determine the longer-term rate trajectory.

SOURCE & AUTHOR |

Keith Murphy Branch Manager – Essex Mortgage NMLS #330827

Direct: 714-309-1140

Apply: www.GoTeamMurphy.com

About the Author

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 43 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and son Matt, 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 23 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, as well as sponsors Paper Shredding and E-Waste Recycling events twice a year.

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.