Mortgage Watch Report

Mortgage Rates are now at 2 Month Highs!  Specifically, in the last 5 trading days, the10yr Treasury Yield has risen from 3.478% to 3.699% while MBS Coupons have lost 88bps pushing mortgage rates .25% to .375% to rate higher (depending on product type).

Most of this move comes from investors moving to a risk-on position (which simply means selling safe haven bonds and buying stocks) which is why we are seeing a massive rally in the stock market.  This week, investors believe the Fed has completed their rate hike cycle and the debt ceiling debacle will be resolved on Capitol Hill next week.

That being said, this morning Republicans walked out of debt ceiling talks, saying the White House isn’t being “reasonable” and currently Fed Chair Powell is speaking LIVE and says rats may not have to rise as much as expected to curb inflation (sounds to me like they are not finished hiking rates).  With job growth increasing, initial jobless claims decreasing, and the consumer spending like “drunken sailors” in all categories (retail, apparel, travel, hotel, housing, etc.) as evidenced by current quarter earnings reports and consumer debt surpassing $17 trillion for the first time ever!

Bottom Line: rate volatility is simply part of the narrative right now, so expecting more of the same until the debt ceiling crisis is solved.


















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.