In its press release, the Federal Reserve noted that the U.S. economy has “decelerated somewhat” since January. Beyond the next few quarters, though, the Fed expects growth to “remain moderate” and then gradually pick up. Remember, when there is bad news for the economy, rates improve. And when there is good to moderate news, rates get worse (see video explanation). Continue reading
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As of this Wednesday morning, Europe’s stock markets are getting hit hard on increasing lack of confidence in the region. Money continues to flow to safety, into US treasuries and German bunds. Also, China said today it won’t inject stimulus at the pace it did in 2008 and its economic growth is expected to decline 8%, also helping to drive our rates lower. Continue reading
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After two weeks of no change, mortgage markets improved last week, pushing mortgage rates lower throughout California. But, are we poised for a reversal? According to the trends, mortgage backed bonds are in a overbought position and ripe for a selloff – Based on the indicators, there’s more room for rates to rise than to fall. Continue reading
Conforming mortgage rates across California rose slightly according to the weekly Freddie Mac Primary Mortgage Market Survey. Continue reading
