If you've been anywhere close to the housing market over the past few years, you know mortgage rates have been rising. Last week brought one of the sharpest increases in years even as rates were already pushing long-term highs. Now, this week's massive stock sell-off...
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Rates Surged to 5% This Week. Is There Any Hope?
For the first time since early 2011, the average mortgage lender is quoting conventional 30yr fixed rates of 5.0%. This happened fairly quickly too, with an increase of 0.25% just in the past 3 days. What's causing all this drama and is there any hope that it will...
Rates Spike Ahead of Fed. Is There Any Good News?
Interest rates are a hot topic right now, largely because they're surging to the highest levels in years depending upon whom you ask and what type of rate you're asking about. There is a lot of confusion and even some misinformation about exactly what rates are...
Rates Paying Price For Sunny August
Last week, we talked about the unintended consequences of a strong economy--namely, that better economic data tends to push rates higher. This week, it was more of the same. In addition to economic data that generally argued for higher rates, markets also had to deal...
Booming Economy’s Unintended Victims
From a strictly economic standpoint, this week saw the release of several impressive reports. It just so happened the 3 best reports were also the 3 most important reports (based on their typical ability to cause a reaction in financial markets). Chief among these was...
Rate Volatility Lowest in Decades; Is Housing a Factor?
There are a few different ways to measure volatility in the bond market, but one of the simplest is via the average daily trading range. That particular metric is showing volatility in line with the lowest levels in decades. The lower volatility goes, and the longer...
Latest Pros and Cons on Housing and Rates
Home sales numbers and other housing-related data have been hot topics of conversation recently. Some say positive housing trends are over. Others say it's no big deal. The truth continues to be somewhere in between. It's clear that we've turned some sort of corner...
Scary Low Housing Numbers? Not Exactly
There's no question that some housing markets around the country are showing signs of cooling. Price reductions are starting to show up again after an extended absence, the average home is staying on the market a bit longer, and inventory is finally coming up from the...
Let’s Talk Turkey: Do US Markets Care?
Turkey is the 17th biggest economy in the world in terms of GDP. That's neck and neck with the Netherlands, roughly 20% bigger than Saudi Arabia (the next closest country) and 4 times bigger than Greece. So the fact that Turkey is in the throes of a debt crisis is...