MORTGAGE WATCH

Mortgage Rates are unable to catch a break from heavy MBS Selling (when bond prices go down, rates go up, and vice versa) This is one of the worst weeks since March.  Since then, only 2 other weeks have been worse and they both occurred in the past month.  In and of itself, the jump in rates wouldn’t be too troubling, but when added to the existing momentum, the losses are adding up.

Making matters more frustrating is the fact that there really isn’t any great, short-term explanation for the incremental damage.  Negative momentum is simply embedded, and it has been since the Fed signaled its “intent to taper” its bond purchases on September 22nd.  Around the same time, covid case counts began turning a corner in a convincing way.

I wish I had better news, but it would take significant negative developments for the economy or in the covid outlook for things to change.  Help could also come from lower inflation (another key source of concern for bonds/rates at the moment), but that sort of help would take months to materialize and there are no great signs that such a process has even begun.

Bottom Line: It appears rates have only one direction to go moving forward, and that is up.  We are recommending clients LOCK as soon as escrow opens.

Keith Murphy
Branch Manager – Essex Mortgage NMLS #330827

Direct: 714-309-1140

Team Fax: 866-762-0458

Email: [email protected]

Apply: www.GoTeamMurphy.com

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Contact Keith’s Assistant – Saudy Esparza

Direct: 714-600-6523

Email: [email protected]

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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.