Mortgage rates continue to drop


Above photo -  David Paul Morris/Bloomberg via Getty Images

Mortgage rates dropped to lows not seen in nearly two year.  This morning Freddie Mac announced the benchmark 30-year mortgage fell to 3.820%.   The rate is from data collected as part of their weekly rate survey of lenders who sell mortgages to them.

 

There are $2 Trillion dollars’ worth of mortgages that are eligible for refinancing.

 

According to Mortgage Bankers Association the lower rates reflect to spike in mortgage activity for those refinancing.  Unfortunately, the activity for those purchasing a property has held flat or declined.  This could be due to many borrowers feeling priced out of participating in homeownership?

 

 “Coming out of the Memorial Day holiday, and likely impacted by the financial market volatility caused by the trade tensions, purchase application volume declined for the week. Potential homebuyers may be more cautious given the heightened economic uncertainty.” Mike Fratantoni, MBA Senior Vice President and Chief Economist. 

 

Here is a snapshot of this week’s rate survey:

  • 30 year fixed – 3.820%
  • 15 year fixed – 3.280%
  • 5/1 ARM – 3.520%

Mortgage rates down, job numbers up…..will it be enough to stop the blue wave?


Creating some relief for those obtaining a new mortgage, rates slid down 10 basis points in week over week reporting.  This morning job numbers also posted impressive gains, despite Donald Trump breaking a long-standing policy of intimating the news prior to the official release with one of his early morning tweets.  The issue is the Bureau of Labor Statistics is to be the first voice in officially releasing the numbers, which normally is around 8:30AM .  Period!

In Trump fashion while he did not specifically break protocol, his mere mention was enough to cause consternation for those who treasure integrity from our institutions.


Looking forward to seeing the employment numbers at 8:30 this morning.


These two metrics and other positive signs bode well for those in political control and could be enough to keep them in the driver’s seat.  The unknown is will they be enough to fend off the impending blue wave from the November election that could result in Democrats gaining control of one or both seats of Congress?

Those in control insist the majority of voters are only concerned about kitchen-table issues and pay little attention to the other dilemmas Trump and the ruling party are attempting to deal with.  They are banking on as long as impressive economic numbers are achieved, any other issues are secondary and will keep them in control.

Of course, Congressperson Maxine Waters (D-California) who has been a thorn in the side of Trump and his supporters sent out a warning while appearing on a national news program earlier this year in March.

“for if some reason, Robert Mueller does not get him, Stormy will.”

 

A recap of the numbers is posted here:

Mortgage

Unemployment