Mortgage Watch

Mortgage Rates are in a drift mode, meaning rates have not done much since last Friday. The 30yr MBS Bond closed at 104.78 last Friday and this morning is sitting at 104.81 or drifting. We will need some meaningful negative headline news to move rates lower from these levels. The adverse fee will continue working its way through the industry in the coming weeks. No lender is immune! Once the fee is back in play for every lender, we could see rates relax just a little. This is driven by a level of uncertainty regarding the number of loans that will meet the cutoff date for the fee. Uncertainty costs money. It forces lenders to widen their margins–even if only slightly to hedge against this risk. Once that uncertainty leaves the building, it could be worth a small token. Time will tell.

Apart from those mortgage-specific fluctuations, the broader bond market (which typically dictates mortgage rate momentum) is locked in one of the narrowest, smallest sideways ranges we’ve ever seen. Some analysts think it could last until the election. While that is a possibility, it’s not necessarily something I’d plan on when it comes to locking vs floating.

With the upcoming elections, virus resurgence, China-US trade talk heating up, and stock market volatility, I am recommending clients lock these rates while they are still available.



Keith Murphy Branch Manager – Essex Mortgage NMLS #330827

Direct: 714-309-1140


About the Author

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.