One of the greatest potential sources of confusion for prospective mortgage borrowers is the relationship between the Fed and mortgage rates. While the Fed's policy changes absolutely have a big impact on all sorts of interest rates (including mortgages), a drop in the Fed's policy rate DOES NOT result in lower mortgage rates. In fact, the OPPOSITE was true today. The main reason for confusion is the fact that there's a huge difference from an investment standpoint between a rate that governs the shortest -term transactions (The Fed Funds Rate applies to loans that last for 1 day or less) and a rate that can remain in effect for up to 30 years in the case of mortgages. Even if we use the average life span of a 30yr fixed mortgage, we're still talking about 5-10 years depending on the broader

September 19, 2019 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch HIGHER Mortgage Rates Despite Fed Rate CUT. Here's Why One of the greatest potential sources of confusion for prospective mortgage borrowers is the relationship between the Fed and mortgage rates. While the Fed's policy changes absolutely have a big impact on all sorts of interest rates (including mortga... (read more) MBS Commentary MBS Live Day Ahead: Bonds Set to Battle Potentially Important Level In the day just passed, the bond market finally got a chance to sink its teeth into the much-anticipated Fed announcement/forecasts/press conference.  Traders were hoping to get a read on whether the Fed rate cut cycle is being treated like a fi... (read more) Housing News 2018's Home Sales Slump Now Fully Erased While the increase wasn't as strong as in July, last month's existing home sales posted a second straight month of gains and, as previously, the National Association of Realtors® (NAR) credited falling interest rates. Sales of previously owned si... (read more) Rob Chrisman Originator, Servicing, Correspondent Products; Why Extensions Cost Money The residential lending industry continues to evolve. Lenders are coming and going, moving in and out of business channels. (The latest example being Union Bank, as UBOC is rumored to be in the process of reducing its overall approved broker client b... (read more) Housing News Fannie Mae Turns Bullish on Construction, Best Levels Since May Fannie Mae says consumer spending will continue to support the economy. The company's Economic Summary for September cites increases in auto and retail sales, real disposable personal income, and real personal consumption expenditures (PCE) as eviden... (read more) Housing News Housing Permits and Starts Hit Highest Levels in a Year August turns out to have been among the year's strongest periods for residential construction. While analysts had expected builders to shake off some of the lethargy that has dogged the industry for most of the year, increasing at least the rate of h... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.81% -0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.81% -0.01 0.00 15 Yr. Fixed 6.04% -0.03 0.00 30 Yr. FHA 6.39% -0.01 0.00 30 Yr. Jumbo 6.92% 0.00 0.00 7/6 SOFR ARM 6.27% -0.04 0.00 30 Yr. VA 6.40% -0.02 0.00 Updates Daily - Last Update: 7/18 15 Yr. Fixed Rate 6.04% -0.03% Rate Change Points Freddie Mac 30 Yr. Fixed 6.75% +0.03 0.00 15 Yr. Fixed 5.92% +0.06 0.00 Updates Weekly - Last Update: 7/17 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.82% +0.05 0.62 15 Yr. Fixed 6.11% +0.07 0.66 30 Yr. Jumbo 6.81% +0.12 0.39 Updates Weekly - Last Update: 7/16 MBS / Treasuries UMBS 30YR 5.5 99.24 +0.12 Price / Yield Change MBS UMBS 5.5 99.24 +0.12 UMBS 6.0 101.20 +0.08 GNMA 5.5 99.55 +0.27 GNMA 6.0 101.21 +0.24 Pricing as of: 7/18 6:52PM EST 10 Year US Treasury 4.4195 -0.0338 Price / Yield Change US Treasury 2 YR Treasury 3.870 -0.034 5 YR Treasury 3.946 -0.044 7 YR Treasury 4.172 -0.038 10 YR Treasury 4.420 -0.034 30 YR Treasury 4.984 -0.024 Pricing as of: 7/18 6:52PM EST Latest Video January new home sales drop nearly 7% Bank of America CEO: Loan demand showing consistent growth UK parliament votes on options to delay Brexit January new home sales fall short of expectations, down 6.9 percent Around the Web Reuters U.S. House approves short-term funding measure consumerfinancemonitor.com New plot twist: CFPB agrees its structure is unconstitutional Calculated Risk Blog Comments on August Existing Home Sales CNBC Home flippers see lowest returns in 8 years as costs rise CNBC Home flippers see lowest returns in 8 years as costs rise CNBC Fed calms overnight funding market, unclear how long it will continue special operations Calculated Risk Blog Philly Fed Manufacturing shows Continued Expansion in September, At Slower Pace NAR - Realtor.com Attention Bargain Hunters: The Best Time of the Year to Buy a Home Is CNBC US weekly jobless claims rise less than expected CNBC Housing starts just hit 12-year high, but sector may be getting 'ahead of itself,' says strategist Bloomberg Bond Traders Are Still Leaning Toward Another 2019 Fed Rate Cut consumerfinancemonitor.com CFPB addresses RESPA issue in its first no-action letter under the revised final policy CNBC Powell says it's possible the Fed will have to resume balance-sheet growth

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