Mortgage Watch Report

Mortgage Rates have been on a wild ride over the course of the past 3 days. It started on Wednesday when the market hedged and positioned for Thursday’s rate announcement which resulted in a ¼ rate hike, putting the US Prime at 8.0% (last time Prime was 8% was 22 Years ago on 3-21-2001)

Normally this rate hike would push mortgage rates higher, but Chairman Powell hinted that the stress in the banking system could do much more to tame inflation than further rate hikes = the market LOVED this narrative and Bonds improved due to a flight to safety in the broader market. In other words, investors sold riskier assets like stocks and bought safer assets like bonds. Excess bond buying results in lower rates, all other things being equal.

Could the improvements continue? That depends on what you’re willing to sacrifice for them. In the current case, the price of lower rates would likely be more bad news for the banking system. While nothing catastrophic happened on that front today, the market remains a bit nervous about the prospect of more unexpected drama.

Bottom Line: in the short term, mortgage rates should continue to improve in the coming days.


















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.