From one of the lenders I work with regularly:
”Finally, some good news to report!
After weeks of worsening prices in the bond market, we are finally seeing some concrete signs of stabilization, which will ultimately lead to better pricing on mortgage rate sheets.
The Fed Chair spoke on Wednesday, & relayed the tightrope they have to walk here to tamp down inflation while also not creating a full-blown recession. They can only control the short term fed funds rate, but they can't control energy prices, which is the main driver of inflation, currently.
However, fears of a recession globally - & this is a global inflation issue, just as it was a global pandemic that we are coming out of now - will actually help rates. The old adage applies here: The cure for higher rates....is higher rates. Pocket books & wages just can't handle much higher rates since housing prices have increased over the pandemic 'zoom boom', & so, we will see some stabilization here soon & maybe even lower rates in the near future.
Looking at the FNMA 30 yr fix bond rate chart, the bond market is trying to fill that in with a nice bounce. You can see the black circle or "window" in pricing from last week, & pricing has cleared that level now. Whenever we see a window fill in, it typically means a reversal is in the works. The Bond market inversely affects mortgage interest rates - bond market goes up, long term rates go down, so this is good news for rates. Let's hope this trend holds & continues here.
Remember bad news is always good for interest rates, so maybe the key here is to talk up fears of a recession so rates will go down, & then not ever actually enter one. That would be a win win.
Bottom line: in a market like this with high volatility, it's more important than ever to employ professionals to help you navigate these choppy seas, so you can take advantage of the dips, make smart decisions, & make the most of your hard earned dollars.”
Warmly~
Heather B McGarry ~ Mortgage Advisor | OR/WA MLO - # 227522
Green Mortgage Northwest | a DBA of American Pacific Mortgage Company, INC.
503 780 2472 main | 503 345 6614 efax | Equal Housing Lender: NMLS #1850
1532 SW Jefferson St, Studio D Portland, OR 97201
