News

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

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

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

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

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

Mortgage rates have been hovering in the high 6’s for weeks, but they broke above 7% on Thursday. At the same time, multiple news outlets reported a 30yr fixed rate of 6.71%. Who’s lying? While the 6.71% news may be prolific, it is all traced back to one source: Freddie Mac’s weekly rate survey.  This…
Read more

A majority of the housing market data on any given month tends to come out mostly on the same week. This was that week and the takeaway was that the housing market could be doing worse. Some might even argue that we’re seeing some resilience relative to the rate landscape. Let’s refresh our understanding of…
Read more

In a surprising turn of events, this week’s biggest market mover for interest rates was a policy announcement by the Bank of Canada (BOC). The event was credited for prompting a re-think of the US Federal Reserve’s rate outlook. Specifically, the BOC hiked rates despite about half the market believing it would hold steady.  While…
Read more

After dominating the news cycle for weeks, the debt ceiling issue is suddenly resolved and the bond market doesn’t seem to care. The jobs report proved to be far more relevant, but with half of it indicating a much stronger labor market and the other half saying the opposite, who’s telling the truth and why…
Read more