Tag Archive for: mortgage rates

Panic & Mayhem Over Interest Rates Shooting Up! Who’s Terrified The Most?

Slippery up and sticky down! Elevator up and escalator down! Those are the cliches we often hear about interest rates, and we’ve seen them play out in spades in recent weeks. Investors panic on every hot inflation or economic report that might prevent the Fed from lowering rates, or worse – cause the Fed to increase rates. This is partially because investors don’t want to lose money by being wrongly positioned (like Silicon Valley Bank was when it held too many low-rate bonds and went belly up), but it is more because our entire economy is addicted to “low-rate-monetary-heroin” (to quote George Gammon). So, rates are always prone to shoot up very quickly, but they tend to come down very slowly – as there is less at stake for investors when rates are trending downward.Read More

Rates Fall Again – Wow! Fed Day; Tale of Two Economies; Who’s Buying Record Level Government Debt? Is the Fed Like North Korea?

The average interest rate was over 8.0% in October, and today it is under 6.7%, as rates fell again in response to weaker-than-expected employment data. Today is “Fed Day,” meaning that the Fed is meeting to announce whether or not it will lower the Fed Funds Rate. Fed Chair Powell’s comments will likely move the markets much more than anything the Fed actually does – so expect volatility later today.Read More

Learn How to Lower Your Monthly Mortgage Payment

Are you feeling weighed down by high interest rates and hefty monthly mortgage payments? Don't fret. JVM Lending is here to guide you through your journey toward the best way to lower your monthly mortgage payments. We understand how challenging it can be to balance your budget, especially when a considerable chunk of your income goes to your mortgage every month. We’ve compiled the best strategies to help you lower those monthly payments and put more cash back in your pocket.Read More

Strong Jobs Report Pushes Rates DOWN? FHA Condo Spot Approvals

Rates continue to bounce up and down today, but the jobs report clearly should not be taken too seriously, and it appears that the economy is still on very soft footing. Remember too that the jobs market is the last domino to fall when recessions hit.Read More

10 Reasons For Enormous Optimism In 2024!

2023 was probably the worst year in history for the mortgage industry – and we’re all happy to see it go, as the total losses were well into the billions. It was worse than 1981 even (when the Fed Funds Rate hit 20%) because of all the over-capacity (and excess competition) left over from the COVID boom.Read More

Are Things FINALLY Turning Around For The Better?

“Things Are Turning Around” Barry Habib told us today in his morning update. He pointed out that rates are finally falling consistently, existing homes were up in November (despite record-high rates when those buyers were shopping in October), and inventory is climbing as well. All this is happening during “slow season” too, so things should be far better by the busy spring selling season.Read More

Fed Ready To Cut; Rates Fall & Stocks Shoot Higher; BUT – Why Is This NOT 2007? “This Time’s Different…”

Fed Chair Powell informed the world yesterday that the Fed is ready to “pivot” even before a core inflation reading (PCE) hits their desired 2%. And, this was after a lower-than-expected inflation report (Producer Price Index) was released. As a result, both stocks and bonds performed well, reminding us again that SOMEBODY WILL PROBABLY BE VERY WRONG. Stocks go up on the prospect of a strong economy and higher profits. Bond prices, however, go up on the prospect of lower inflation and a weaker economy. Is it possible that this time is different and that rates will fall and the economy will surge as a result? Not likely.Read More

Why Do We HATE Each Other So Much? And Why Does It Matter For Housing?

America has not been this contentious or polarized since the Civil War – as most readers know. Many people blame social media for this polarization. The ability to post online without being face-to-face and the ability to post anonymously – seems to foster much more contentious and polarizing discourse.Read More

Rates Fell 3/4% Since Mid-October – Defying Predictions Of “Rate-Ageddon”

Mortgage rates fell almost 3/4% since mid-October – while the 10 Year Treasury yield fell about 6/10%. We’ve seen rates fall before, so who cares? Read More

Inflation Cools & Rates Shoot UP! Why? “Rates Down In March!” RATE ROLL-DOWNS

The markets are going crazy, as everyone tried to anticipate the Fed’s next move. When deciding to raise or lower rates, the Fed watches (1) the labor markets; (2) inflation; and (3) consumer spending – and ALL THREE sent the markets and rates into a tizzy this week.Read More

Why The Fed Must and Will Lower Rates!

I frequently remind readers that a recession is likely and that the Fed will lower the Fed Funds rate when the recession hits. The Fed will do this to revive lending, to make borrowing costs cheaper, and to stimulate the economy overall. The risk of doing so will be more inflation, but the Fed will likely have no choice if it wants to keep the economy from completely collapsing.Read More

How To Get 1% Below Market Rates Without Paying Points!

Rates hit a 20-year high yesterday, and we still had 8 contracts come in. So, this is another reminder that real estate still happens – no matter how high rates get.Read More

Rates Hit Record High (Again); 2007 vs. 2023 – A Worrisome Comparison!

Rates hit a new record high today, as the 10 Year Treasury hit levels not seen since 2007, and mortgage rates are back to 2000’s peak levels.Read More

Inflation Up and Rates Down??? Impact of Hamas/Israel Conflict

Producer Price Index (PPI) or “Wholesale” Inflation came in much hotter than expected, but rates fell nonetheless. This surprised many market watchers, as hot inflation reads normally send rates much higher.Read More