Mortgage Applications Improve
The big moves in rates last week also created a large move in mortgage applications. With purchase applications going up by 4% and refinances rising by 18%, people are looking to fix their costs NOW!
Working the higher end rental markets has been going exceptionally well. All of the people I am working with are seeing a great deal of positive feedback and with rents rising rapidly, those in the luxury rental market are now seeking ownership to solve their housing issues. These borrowers often have assets, great credit, and enter the housing arena in the mid to upper range of the market, so higher loan sizes and more predictable transactions.
As this is being posted we will shortly get the unemployment numbers for this week, followed shortly thereafter by the factory orders report. Keep an eye open as these could cause some reaction.
Most importantly, Friday morning we have the January Jobs Report which always has the attention of the markets. So PLEASE keep yourself aware of the market movers and when news breaks that can impact the rate markets. With the 10yr sitting on top of resistance at 1.77, a break below that number and managing to stay there, could be very helpful to mortgage rates. However, a bounce higher and that could push mortgage rates.
The 30yr UMBS 30 is fighting to get back above 102.19, but bad news could push that coupon down toward the next level of support of 101.57. I know a 60bps move doesn’t seem like a lot given recent history, but that history tells us that that move could happen lightning fast! So just keep track of market movers, as always, if you like it, LOCK IT!
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