What is happening with mortgage rates in Raleigh? The Weekly Martini

What is happening with mortgage rates in Raleigh? What is happening with mortgage rates in North Carolina?  What is happening with mortgage rates on the aggregate all over the the U.S.? The is a Special Edition of the Weekly Martini by Kevin Martini a Raleigh mortgage lender with the Martini Mortgage Group at Benchmark Mortgage. Let us start by sharing, there was a ton of things that happened last week and there is a ton of thing that going to happen next week too.

This past Monday (7/23/18) Existing Home Sales data was released.

Fact: Existing Homes Sales have fallen for the 3rd straight month.

Fact: from June 2017 to June 2018 Existing Home Sales fell 2.2%.

The decline is not because of the lack of desire to own a home or because of demand…the decline is because there is a severe housing shortage. Simply put, there are a ton of folks looking to buy but cannot find it because of the current inventory. There is ONLY a 4.3 month supply and this is well below the 6-month supply seen as normal.

One way to communicate to a Seller that your Buyer is not just ready & willing but you are also able is with a ‘Same-As-Cash Pre-Approval Letter from the Martini Mortgage Group at Benchmark Mortgage.

Because of consumer spending, economic growth surged in the second quarter of 2018.  The Gross Domestic Product (GDP) was reported at +4.1% this past week for the second quarter of 2018.  For perspective, GDP was +2.2% recorded in the first quarter of 2018.  What does this mean?  To understand you have to remember that home loan rates live in the Bond market.  Bond pries are weighed down with positive economic news – when there is positive economic news Bond yields increases…when yield increases, home loan rates rise and that is what has happened last week however home loan rates remain near historic lows.

BE PREPARED FOR THIS COMING UP WEEK

(it is going to be action packed)

​A full buffet of of economic reports plus and added bonus of a Fed Meeting!  Pending Home Sales, S&P/Case-Schiller Home Price Index, Personal Consumption Expenditures (PCE), Personal Income, Personal Spending, Employment Cost Index, Consumer Confidence, Chicago PMI, ISM Index and  then, on Friday, the July 2018 Jobs Report.  If that is not enough remember the two-day FOMC meeting starts on Tuesday and ends on Wednesday with a release of the monetary policy statement.

Remember:  Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which Raleigh home loan rates are based.

When you see these Bond prices moving higher, it means home loan rates are improving. When Bond prices are moving lower, home loan rates are getting worse.

4.5% Fannie Mae 30-year Japanese Candlesticks (Quarter) by Kevin Martini

If you or someone you know has questions about home loan rates, please give Kevin Martini or Alex Martini  or Logan Martini a call at (919) 238-4934. We are always happy to help.

Be PROACTIVE not REACTIVE!

Many people say ‘it could never happen to me’ but it does.  ID Theft is real and could cost you time and money.  Credit monitoring is nice however something everyone should consider is a Credit Freeze.

Monitoring alerts you after the fact, a Credit Freeze does not allow unauthorized access.  To lean more, check out Episode 013 of the Martini Mortgage Podcast which is available on iTunes or here is a short url to the podcast supplement:  https://goo.gl/ryH4Sp

 

‘Our Family is Your Family Lender’

Kevin Martini | NMLS ID 143962 | Branch Manager | Martini Mortgage Group at Benchmark Mortgage | Ark-La-Tex Financial Services, LLC NMLS ID 2143 | 5650 Six Forks Road, Suite 101 Raleigh, NC 27609 | (919) 238-4934 | www.KevinMartini.com | Kevin.Martini@Benchmark.us | Equal Housing Opportunity

Alex Martini | NMLS ID 1523540 | Mortgage Planner | Martini Mortgage Group at Benchmark Mortgage | Ark-La-Tex Financial Services, LLC NMLS ID 2143 | 5650 Six Forks Road, Suite 101 Raleigh, NC 27609 | (919) 238-4934 | www.AlexanderMartini.com  | alex.Martini@Benchmark.us | Equal Housing Opportunity

Logan Martini | NMLS ID 1591485 | Mortgage Planner | Martini Mortgage Group at Benchmark Mortgage | Ark-La-Tex Financial Services, LLC NMLS ID 2143 | 5650 Six Forks Road, Suite 101 Raleigh, NC 27609 | (919) 238-4934 | www.LoganMartini.com | logan.Martini@Benchmark.us | Equal Housing Opportunity