Aloha! After a couple of weeks in Hawaii, I\u2019m back to fill in what has changed!<\/p>\n\n\n\n
MORTGAGE RATES<\/strong><\/p>\n\n\n\n Mortgage rates are starting the week under pressure again as Treasury yields remain at 20 + year highs. The latest Freddie Mac average for a 30-year fixed mortgage is 7.28%, up from 7.03% the previous week.<\/p>\n\n\n\n The 10-year Treasury yield is trading at 5.3% this morning. Higher oil prices, inflation concerns, and uncertainty over future Fed policy continue to put pressure on the bond market.<\/p>\n\n\n\n THIS WEEK’S BIGGEST RATE MOVERS<\/strong><\/p>\n\n\n\n Monday, October 5 Tuesday, October 6 Wednesday, October 7 The Fed minutes will give us a closer look at the discussions behind September’s rate decision and how concerned Fed officials remain about inflation.<\/p>\n\n\n\n Thursday, October 8 Friday, October 9 Why It Matters<\/strong><\/p>\n\n\n\n This is a lighter week for economic reports, but the bond market remains extremely sensitive to inflation.<\/p>\n\n\n\n If economic data stays strong or inflation expectations rise: If economic data weakens and inflation expectations improve: Iran and the Bond Market<\/strong><\/p>\n\n\n\n Iran continues to have a major impact on rates because of its effect on oil prices and inflation. There is some encouraging news on oil supply. Middle East crude exports recovered significantly during September and, on several days, actually exceeded pre-war levels. However, the situation remains very unstable. The Strait of Hormuz is still not fully reopened, and attacks on tankers have increased. Brent crude is trading around $102 per barrel.<\/p>\n\n\n\n U.S.\u2013China Update<\/strong><\/p>\n\n\n\n President Trump and Chinese President Xi Jinping made some progress during their recent meetings. The two countries agreed to move forward with new trade and investment discussions, including more favorable tariff treatment for approximately $30 billion of non-sensitive goods in each direction. For mortgage rates, this is mildly positive. Less trade tension reduces the risk of additional tariffs, which can increase the cost of imported goods and add to inflation. However, the impact on rates has been relatively small. Oil prices, inflation, government borrowing, and Fed policy are currently much bigger drivers of the 10-year Treasury and mortgage rates.<\/p>\n\n\n\n Federal Reserve Outlook<\/strong><\/p>\n\n\n\n The Fed remains focused on controlling inflation, and this week’s meeting minutes should give markets a better idea of how policymakers are thinking about their next move. Higher energy prices remain a concern because they can work their way through the economy and make inflation more difficult to control. If the minutes suggest the Fed may need to keep policy tighter for longer, Treasury yields could remain elevated. A more cautious tone could provide some relief for the bond market.<\/p>\n\n\n\n Financing Spotlight: Omitting a Departing Residence<\/strong><\/p>\n\n\n\n One of the challenges that a seller can have when they want to buy first and then sell is coming up with the money and\/or qualifying for a mortgage with their existing home.<\/p>\n\n\n\n Here’s a financing strategy that can help a borrower qualify when purchasing a new primary residence while keeping their current home. With certain Non QM (Non Qualified Mortgage) loan programs, we can omit the departing residence payment from the borrower’s qualifying ratios rather than requiring them to qualify with both housing payments or obtain a lease agreement.<\/p>\n\n\n\n Basic requirements include:<\/p>\n\n\n\n \u2022 At least 20% equity in the departing residence For more information on this program, reach out to me at 760-758-5370<\/p>\n\n\n\n Click here to Search For Homes For Sale in San Diego<\/a><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Aloha! After a couple of weeks in Hawaii, I\u2019m back to fill in what has changed! MORTGAGE RATES Mortgage rates are starting the week under pressure again as Treasury yields remain at 20 + year highs. The latest Freddie Mac … Continue reading
\u2022 ISM Services Index
\u2022 S&P Global Services PMI<\/p>\n\n\n\n
\u2022 U.S. Trade Balance<\/p>\n\n\n\n
\u2022 Federal Reserve Meeting Minutes
\u2022 10-Year Treasury Auction<\/p>\n\n\n\n
\u2022 Weekly Jobless Claims
\u2022 Wholesale Inventories<\/p>\n\n\n\n
\u2022 University of Michigan Consumer Sentiment
\u2022 Consumer Inflation Expectations<\/p>\n\n\n\n
\u2022 Treasury yields could remain above 5%
\u2022 Mortgage rates could remain under pressure
\u2022 The Fed could keep rates higher for longer<\/p>\n\n\n\n
\u2022 Bond markets could improve
\u2022 Treasury yields could move lower
\u2022 Mortgage rates could get some relief<\/p>\n\n\n\n
\u2022 Required reserves must be documented. 12-24 months
\u2022 The borrower is purchasing a new primary residence
\u2022 Additional program and underwriting guidelines apply<\/p>\n\n\n\n