Napa Mortgage News

Mortgage Market News

March 6th, 2017 7:37 PM by Dale DiGennaro

Dear Gena,

On the heels of the Inauguration of our 45th president, all the protests going on nationwide, some major flooding through out California and the consistent changes in the market.......seems like you have plenty of news to follow at the moment! But...I did want to pass on the market shifts for last week as well as whats on the calendar for this week!

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THINKING OF SELLING OR EVEN DOING A REFINANCE...
Our "Home Price Index" will take into consideration your original purchase price & date of home purchase to determine...

according to the appreciation rate for the region you live in...whether it is a good time for you to refinance now or....if you are getting ready to list your home...what a reasonable value for your area would be. You can also sign up to receive a quarterly report of your homes value based on the up to date analysis of your region.

Just a couple of ways that Custom Lending keeps you informed of our changing market place so you can make the best financial decisions for you and your family!

Fed Officials Surprise Investors

Comments from Fed officials and stronger than expected economic data were negative for mortgage rates this week. Renewed concerns about the United Kingdom's exit from the European Union offset a little of the increase, but mortgage rates ended the week higher.

Brexit is back in the news. On Tuesday, British Prime Minister Theresa May spoke about the UK's objectives in its negotiations for the United Kingdom to exit the European Union. According to May, the UK will not attempt to remain in the single market of the EU because it would require allowing the free movement of workers between the UK and the rest of the EU. Instead, the UK will negotiate trade agreements with the EU and other countries. It is difficult at this time to predict the effect Brexit will have on the economies in Europe. The uncertainty about the outlook for growth caused investors to shift to safer assets, including U.S. mortgage-backed securities. This added demand was good for mortgage rates.

On Wednesday, however, the Fed's Kaplan expressed support for

tighter monetary policy due to progress in meeting the Fed's labor market and inflation goals. Of note for mortgage rates, he thinks that the Fed should soon begin to consider a reduction in the Fed's large holdings of MBS and Treasuries. The prospect that this change may take place sooner than expected was negative for mortgage rates. Later that day, Fed Chair Yellen said that most Fed officials expect to raise the federal

funds rate gradually until it reaches 3.00% by the end of 2019. This was a faster pace than many investors had expected, and Yellen's comments also pushed mortgage rates higher.

Housing data released this week revealed

that the housing market ended 2016 on a positive

note. In December, housing starts rose 11% from November, well above the expected levels. For the

year, housing starts were 5% higher than in 2015,

making it the best year since 2007.

Looking ahead, additional information about policy changes under the Trump administration could continue to affect mortgage rates. Existing Home Sales will be released on Tuesday and New Home Sales will come out on Thursday. The first reading for

fourth quarterGDP, the broadest measure of economic growth, will be released on Friday. Durable Orders, another important indicator of economic activity, also will come out on Friday.

"Thank you for always trusting in us to do the best for you and your family and please feel free to call me anytime you have questions. I will be happy to share with you whatever information you may need!"