My Loan Officer
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Jason Obradovich - Chief Investment Officer

30 Year Fixed – 5.750% / 6.056% APR   15 Year Fixed – 5.250 /5.759% APR   FHA 30 Year Fixed – 5.375% / 6.421% APR   VA 30 Year Fixed – 5.375% / 6.015% APR

Rates are current as of 9:00AM PST on 12/2/2022 | View Disclosures

Housing Market News & Updates

Translating the complexity of the markets into a concise and easy to digest format. Watch videos, read blogs, and view key data on short and medium term trends impacting interest rates, so you can make the right decision for your situation.

Latest Market Update

A Spooky Mortgage Rundown of 2022

Hello, everyone. Welcome back to the Mortgage Rundown. In today's episode, since we're getting so close to the holidays, I thought I would do a year in review of so far in 2022.

The 10-year Treasury started the year at 1.5%. But thanks to an overheated economy, the Federal Reserve is pushing interest rates much higher. The 10-year Treasury hovers around 4% by the end of the year.

Speaking of the Federal Reserve, they are on track to raise interest rates at the fastest pace in over 30 years. It will be very interesting to see how much they can combat record inflation with higher rates and if they can bring higher interest rates back down to a more normal level next year.

We see mortgage rates this year jump from around 3% in January, all the way up near 7% by the end of September.

It's truly been a year to remember, and hopefully higher rates don't impact the housing market negatively. Hopefully, we will see inflation come down materially very soon, or the FOMC will be forced to be very less accommodative. And that means higher rates and a higher risk of a recession.

That's it everyone from the Capital Markets Desk this week. Thank you all for watching. Have a great day and a happy holiday!

Previous Market Update

Are Mortgage Rates At Their Peak?

Hello everyone. Welcome back to the Mortgage Rundown. Today we are going to talk about what’s happening with interest rates.

Just a few short weeks ago was one of the most important FOMC meetings in several years. As you probably already know, the Federal Reserve raised their benchmark rate another 0.75% and the overnight Fed Funds rate is now in the range of 3-3.25%. 

Not only did they raise the rate once again at a historically fast rate, but they have provided guidance for the remainder of the year that they likely will raise rates 75bps again in November and 50bps or possibly more in December, which will push the upper hand of the benchmark rate right around 4.5%.

The Fed’s more hawkish tone surprised the market somewhat and here we stand with the 10yr Treasury inching back closer to 4%, not to mention the 2yr Treasury is driving very close to 4.5%. Clearly the market got the Fed’s message that they plan to crush inflation no matter the cost.

With all of that being said, where do mortgage rates go from here?  Well, it’s safe to say that the market has fully baked in the Fed’s intentions over the next 3-4 months. The big question will be how soon until we see inflation start to abate to a more normal level.

There are several market prognosticators that expect the Fed to reach its inflation target by the end of the 1st quarter next year and, at the same time, many economists are expecting the economy to be in a recession around the same time period. 

If both of those things happen, then we could see a decent drop in mortgage rates as the market adjusts to a potential pivot by the Fed. However, the Fed has told the market that they should not expect a quick pivot, so I would be somewhat cautious both ways. 

For now, we need to keep a close eye on inflation and employment data as we head towards the end of the year.

That’s it everyone from the capital markets desk this week. Thank you all for watching and have a great day.

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