Mortgage rates improved today following the Federal Reserve's policy announcement and Fed Chair Powell's press conference. The Fed doesn't set mortgage rates (their policy rate applies to 1-day loans between banks whereas mortgages obviously last a lot longer). But the Fed's monetary policy stance can definitely cause volatility in the broader bond market (which DOES impact mortgages). That was the case today and the impact was positive. Markets correctly assumed that the Fed would neither hike nor cut its policy rate. That wasn't the source of inspiration. Rather, it was comments from Fed Chair Powell during his press conference. Simply put, the Fed is prepared to keep rates lower for longer in an attempt to keep inflation slightly higher than they ultimately want it to be. Their reasoning

December 11, 2019 Download our Mobile App: Download our Mobile App: 30 Yr. Fixed 6.34% +0.06%   6.13% 7.26% 15 Yr. Fixed 5.82% +0.01%   5.6% 6.59% 30 Yr. Jumbo 6.32% +0.02%   6.1% 7.45% Compare Mortgage Rates from Local Lenders for Dec 11, 2019 Mortgage Rates Improve After Fed Announcement Wed, Dec 11, 2019 4:14PM Mortgage rates improved today following the Federal Reserve's policy announcement and Fed Chair Powell's press conference. The Fed doesn't set mortgage rates (their policy rate applies to 1-day loans between banks whereas mortgages obviously last a lot longer). But the Fed's monetary policy stance can definitely cause volatility in the broader bond market (which DOES impact mortgages). That was the case today and the impact was positive. Markets correctly assumed that the Fed would neither hike nor cut its policy rate. That wasn't the source of inspiration. Rather, it was comments from Fed Cha... (read more) Mortgage News Daily Rate Change Points 30 Yr. Fixed 6.34% +0.06 0.00 15 Yr. Fixed 5.82% +0.01 0.00 30 Yr. FHA 6.06% +0.05 0.00 30 Yr. Jumbo 6.32% +0.02 0.00 7/6 SOFR ARM 5.98% +0.09 0.00 30 Yr. VA 6.08% +0.05 0.00 Updates Daily - Last Update: 11/3 Freddie Mac Rate Change Points 30 Yr. Fixed 6.17% -0.02 0.00 15 Yr. Fixed 5.41% -0.03 0.00 Updates Weekly - Last Update: 10/30 Mortgage Bankers Assoc. 30 Yr. Fixed 6.30% -0.07 0.58 15 Yr. Fixed 5.67% -0.07 0.61 30 Yr. Jumbo 6.38% -0.01 0.34 Updates Weekly - Last Update: 10/29 UMBS 30YR 5.0 99.54 +0.09   95.05 100.11 UMBS 30YR 5.5 101.04 +0.04   97.47 101.40 10 YR Treasury 4.082 -0.027   3.932 4.780 MBS Live Recap: Fed Proves Surprisingly Capable of Intraday Inspiration Wed, Dec 11, 2019 4:55PM We moved from NFP not mattering (and then causing a surprisingly big intraday stir) to the Fed undergoing quite a similar routine.  Granted, in the bigger picture, neither event will be memorable or have a lasting impact on rate momentum, but they both came as close as they could. Today's reaction to the Fed was the opposite of the reaction to last we... (read more) MBS Price Change UMBS 4.5 97.53 +0.12 UMBS 5.0 99.55 +0.09 UMBS 5.5 101.03 +0.03 GNMA 4.5 97.56 +0.06 GNMA 5.0 99.71 +0.06 GNMA 5.5 100.81 +0.02 Pricing as of: 11/4 11:48AM EST US Treasury Yield Change 2 YR Treasury 3.573 -0.036 5 YR Treasury 3.690 -0.034 7 YR Treasury 3.873 -0.032 10 YR Treasury 4.081 -0.028 30 YR Treasury 4.664 -0.029 Pricing as of: 11/4 11:48AM EST Other News NAR Forecasts on GDP, Rate Cuts, and Probability of Recession Wed, Dec 11, 2019 1:26PM The National Association of Realtors (NAR) used the occasion of a summit headed by Secretary of Housing and Urban Development Ben Carson to release its forecast for housing and the economy over the next year. The predictions were consensus estimates from 14 leading economists who participated in the summit and were surveyed last week prior to the Wednesday m... (read more) Everyone is Still Refinancing; FHA Refis at 3 Year High Wed, Dec 11, 2019 8:41AM Mortgage applications activity recovered strongly during the week ended December 6 after the usual Thanksgiving week lull. The Mortgage Bankers Association (MBA) said its Market Composite Index, which measures the volume of mortgage applications, increased 3.8 percent on a seasonally adjusted basis from the week ended November 29 and was 47 percent higher on... (read more) Home Purchase Sentiment Rebounds to Near Record Highs Tue, Dec 10, 2019 10:55AM After a steep dive in October, America's attitude toward buying a home is on the rise again. Positive answers to the question of whether it is a good time to buy on Fannie Mae's November National Housing Survey rose 11 percentage points to a net of 32 percent, 9 points higher than in November 2018 and its highest point since March 2018. That answer helped dr... (read more) Servicing Primer and Prepayment Speeds; Retention, Reno, Non-QM Products Wed, Dec 11, 2019 9:41AM Aloha! As any servicer with borrowers in Hawai’i knows, if you’re going to ask, “Is Ms. Keihanaikukauakahihuliheekahaunaele* home?” or “Do you live on Kaalualu Waiohinu Rd.?”, you’d better be able to pronounce them. In the 1960s, fewer than 2,000 people spoke Hawaiian fluently, just a handful of whom were children. T... (read more) Latest Video Powell on differences between now and 1995, 1998 rate decisions Negative trend in business investment a red flag: Stifel's Piegza US-China phase one trade deal is still in the works US Consumer Price Index rose 0.3% in November, vs 0.2% increase expected Around the Web Calculated Risk Blog Houston Real Estate in November: Sales up 2% YoY, Inventory Up 5% CNBC Fed Chair Powell says he would want to see persistent rise in inflation before hiking rates again Reuters U.S. government posts $209 billion deficit in November CNBC Fed leaves rates unchanged Reuters U.S. chief executives back revised USMCA trade deal Reuters Explainer: What the U.S. Federal Reserve will be watching in 2020 Calculated Risk Blog Cleveland Fed: Key Measures Show Inflation Above 2% YoY in November, Core PCE below 2% Reuters Dow hit by losses in Boeing, Home Depot; S&P 500, Nasdaq edge higher CNBC Christine Lagarde faces her first real test at ECB debut meeting CNBC US consumer prices increase more than expected in November CNBC Home Depot forecasts 2020 sales growth below expectations Reuters After year of living dangerously, Fed likely to signal time to lay low Calculated Risk Blog Wednesday: FOMC Announcement, CPI

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