Mortgage Rates Higher After Fed Comments

Posted To: Mortgage Rate Watch

After hitting the best levels in just over 2 months yesterday, mortgage rates bounced moderately higher today. The move brings them back above Friday’s levels, but not quite as high as Thursday’s. Most lenders are still quoting conventional 30yr fixed rates of 4.0% on top tier scenarios. The smattering of lenders that had moved down to 3.875% is somewhat smaller today, but not extinct. The day actually began well enough, with rates roughly in line with yesterday’s. It wasn’t until Atlanta Fed President Dennis Lockhart commented on the likelihood of a September rate hike that trading levels shifted, forcing lenders to adjust rate sheets in the afternoon. What does this mean? Lockhart isn’t saying the Fed will necessarily hike in September, but by holding it out as one viable option, he’s pushing…(read more)

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Source: Mortgage News Daily

MBS RECAP: Widespread Reprices After Lockhart Comments

Posted To: MBS Commentary

Atlanta Fed President Dennis Lockhart is a pragmatic and reasonable member of the FOMC. He doesn't consistently grind an axe in the same way that several other Fed speakers can, instead adapting to the situation at hand as it changes. In my view, he's one of the best Fed speakers to pay attention to for these reasons, or at the very least, not one to be ignored. Markets certainly didn't ignore him today when the following wires came out from Dow Jones: DJ – LOCKHART SAYS 'SIGNIFICANT DETERIORATION' IN DATA WOULD CONVINCE HIM TO PUT OFF RATE INCREASE DJ – LOCKHART SAYS SEPTEMBER COULD BE 'APPROPRIATE TIME' TO LIFT INTEREST RATE DJ – ATLANTA FED'S LOCKHART SAYS FED IS 'CLOSE' TO BEING READY TO RAISE SHORT-TERM RATES Any time a Fed speaker references a FUTURE…(read more)

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Source: Mortgage News Daily

Non-Mortgage Debt a Potential Concern for Lenders

Posted To: MND NewsWire

Returning to economic normalcy apparently means that Americans are back into heavy-debt mode . Black Knight Financial Services said today that levels of non-mortgage debt at the end of April were at the highest levels in 10 years. The company looked at average overall non-mortgage debt of persons who hold a mortgage and at the components of that debt in the current issue of its Mortgage Monitor. The average debt level of those individuals is just about $24,800, up from $23,400 in April of last year. Non-mortgage debt hit a recent low in 2011, averaging $22,230, so the newer number is an increase of $2,600 in four years. By far the greatest contributor to the increase is auto debt. It accounts for 81 percent or $2,094 of the $2,600 increase and the share of mortgage holders who have auto debt…(read more)

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Source: Mortgage News Daily