48 Meriden Rd, Suite 1, Middlefield, CT 06455

Category: Newsletters

Fed Won’t Move Its Rate, But Rates Could Still Move

In and of itself, this week wasn’t too bad for mortgage rates. Things got a bit worse overall, but the change from last week was minimal with the average lender moving up 0.07% from last Friday.   There’s a decent cushion between current levels and the long-term highs last month. Even the late 2022 highs were a…
Read more

Rates Defended The Ceiling This Week; Bigger Battles Ahead

While it’s impossible to predict the future when it comes to financial markets, it’s usually possible to identify the events that have higher potential to cause bigger swings. Other times, volatility strikes on days when it wasn’t entirely expected. That’s how this past week began.  After Monday’s holiday closure, rates jumped higher on Tuesday morning…
Read more

It’s Complicated, But Also Simple

Depending on the company you keep over this Labor Day weekend, you might hear that rates are high, housing in the verge of collapse, and the economy is headed for a hard, recessionary landing. Or you might hear that rates are coming down, housing has turned a corner, and the economy remains surprisingly resilient. No…
Read more

Markets Were Anxious Over Powell, But Next Week Deserves More Attention

As the week began, the bond market continued heading toward higher rates at the same pace seen in the previous week.  This made for the highest mortgage rates in more than 2 decades on both Monday and Tuesday (albeit not much higher than those seen in late 2022).  Things calmed down on Wednesday as multiple…
Read more

How Multi-Decade Highs Are Changing The Way Mortgage Rates Are Quoted

At this point “high rates” are old news. We were already close to hitting the highest levels in more than 20 years last week, so it wasn’t a huge surprise to achieve that dubious distinction this Thursday. Some sources see the record-breaking rate at 7.09% for a 30yr fixed while others are over 7.5%. Both…
Read more

Rates Are Officially Breaking The Rules, But Why?

This was supposed to be the week where a key inflation report would cast a vote on the fate of interest rate momentum. The vote was ostensibly friendly but rates surged higher anyway. What gives? First off, let’s revisit why rates would care so much about an inflation report.  CPI (the Consumer Price Index) is…
Read more

Mortgage Rates Near 23 Year Highs. Is There Any Hope?

Interest rates of all types have been under immense pressure since the beginning of 2022. That’s when the Fed began raising rates at the fastest pace in decades to the highest levels in decades in order to combat a similarly fast-paced spike in inflation. This particular era of Fed rate hikes is particularly aggressive because…
Read more

Mortgage Rates and Housing Didn’t Care About This Week’s Fed Rate Hike

It’s no mystery that the housing and mortgage markets are facing their fair share of headwinds in 2023, but some blow harder than others.  One of the most complicated headwinds is that of Federal Reserve. At first glance, the Fed’s decisions to hike or cut rates are extremely important.  In addition to being prominent in the…
Read more

Slow Housing Market’s Questionable Excuse (And a Much Better Alternative)

Inventory! That’s been a buzzword for the housing market for more than a decade, but it’s been especially prevalent in 2023 as the excuse for slower home sales.  How good of an excuse is it? Before digging into that question, let’s take a look at the data that needs to have excuses made for it. …
Read more

Rates Recover Rapidly After Inflation Data

Mortgage rates spiked abruptly last week after several economic reports showed the economy doing better than expected. Now this week, key inflation data showed prices falling faster than expected. Rates responded with a full recovery. If rates could only choose one thing to be afraid of, it would be inflation.  Rates are based on bonds.  Bonds…
Read more