MORTGAGE WATCH

Mortgage Rates remain flat to slightly better than last Friday. Mortgage Bonds and Treasury Bonds defy logic after the Fed Tightening news. There are only so many ways this “head scratcher” makes any common sense, but here are 3 of my hypothesis:

  1. The news of Fed Tightening was already baked into the market, and we now have a relief rally.
  2.  Markets are concerned about the COVID variants spreading and slowing economic activity (capital moves to bonds as a safe haven when fear emerges).
  3. Stock Market Selling and Volatility are adding weight to the fear gage.

Bottom Line: A mortgage bond price has broken the range of a negative trend. This also puts the MBS back above the 21 day moving average and right on target to cross above the 50 DMA. If this happens, count on a much bigger rally = lower rates. Today I am advising clients to float carefully!

*NOTE: FHA loan limits do not increase until 1-1-2022, hence the lower 2021 loan limits for FHA “only” below.

About the Author

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 44 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 25 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.