Mortgage News Weekly

Mortgage News Weekly

GTG Financial, Inc
GTG Financial, Inc
Published on January 30, 2023

Mortgage News Weekly

We are excited to share with you the latest updates and insights from the mortgage market

Fed week! Everyone is expecting a much more tempered .25% increase from the Fed this week on Wednesday, and no, the Fed Funds rate is not the same as mortgage rates (short term debt vs long term debt) Still, it can indirectly affect mortgage rates confusing consumers that they are one and the same.

Verify my mortgage eligibility (Oct 3rd, 2023)

Jobless claims Thursday and the Jobs Report Friday are shaping up for an eventful week of news. Hopes are this continues to fuel the downward pressure on mortgage rates.

Couple that with solid technicals, and the market seems to be reacting positively. We’ll take it!


Verify my mortgage eligibility (Oct 3rd, 2023)
 Inflation Turning the Corner:

  • Headline PCE declined nearly 2% after peaking last June
  • Core PCE is down 1% after reaching 5.4% last February
  • The decline is expected to continue

Pending Home Sales Rise:

  • Pending home sales rose 2.5% from Nov to Dec, ending 6 straight months of declines
  • Sales were 33.8% lower than they were a year earlier
  • Mortgage rates are the main driver of home sales, recent rate declines are stabilizing the market

New Home Sales:

Verify my mortgage eligibility (Oct 3rd, 2023)
  • New home sales rose 2.3% in Dec to a 616,000-unit pace
  • Mortgage rates declined slightly in Dec, which drove buyer activity
  • Inventory remains tight with only 71,000 completed homes out of 461,000 new homes for sale

Positive Fourth Quarter GDP:

  • GDP grew 2.9% annualized in Q4, higher than estimates
  • This is the first of three readings, revisions may occur
  • Inventory build played a big role in the overall figure, personal spending declined, retail sales were weak, causing companies to have excess inventory

Jobless Claims:

  • Initial jobless claims fell by 6,000, second week in a row with a decline
  • Continuing claims rose 20,000 to 1.675 million
  • Companies are reducing workers’ hours instead of letting them go

 What to tell your clients: Keep a close eye on inflation, housing activity, and jobless claims to gauge the future of mortgage interest rates.


Fannie and Freddie Drop On LLPAs

Hidden Interest Rate HIKE - Q2 2023
Upcoming Loan Level Price Adjustments (LLPA) are poised to artifically re-raise rates in late Q1 2023.

Fannie Mae and Freddie Mac announced a shocking change to their standard matrix of pricing adjustments last week.

  • Most borrowers WILL be affected.
  • New strategies will be deployed immediately by pro-active Banks and Brokers to combat these changes.
  • Portfolio, FHA and other lending products will become very attractive for some traditional conventional borrowers.

Show me today's rates (Oct 3rd, 2023)
GTG Financial, Inc
GTG Financial, Inc
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(707) 546-0440

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