MORTGAGE WATCH

Did you feel that?

No, that wasn’t an earthquake, that was the Bond Market getting whacked!  Yes, the market is shifting and rates are rising a pretty fast clip over the last 3 trading days (see graph below).  You can see the steep sell-off and the 10yr Treasure Note yield also rose and broke through 1.3%!

MORTGAGE WATCH

So what is going on? Today’s strong jobs report certainly deserves some credit (943,000 new jobs added, market expected 870,000) as well as the Fed announcement this week that the may consider a tapering timeline (as early as this September is the whisper).  Add to that ample economic uncertainty surrounding the spike in COVID cases and deaths, well you have a receipt for higher mortgage rates going forward.  Remember, back in March 2020, when economic calamity fears hit the market, the Fed provided a back stop, but this time they are out of dry powder and will start pulling out of the markets at the same time the dark cloud grows.

Bottom Line: Yes, times are changing as least in the short term. I advise client lock in as soon as escrow opens!

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.