Volatility Creeping In...

Those that have known me a longer time know my fascination with the financial markets.  Some might even call it an obsession!

Every day I scour stock charts and the charts of mortgage-backed securities trading on Wall Street.

For years, I subscribed to a service to watch the daily moves in the mortgage-backed securities.  Then, the marketplace became so manipulated and rates became so much more stable that I found it not a great use of my time.

Well, things are changing.

What is going on?

The 12 year and counting downtrend in mortgage rates is near its end.  Financial markets never go in one direction forever.

In fact, the "funkiness" of the mortgage-backed securities market on Wednesday "feels" like a beginning to me.  A beginning to more volatility and the eventual move higher in mortgage rates.

Now, I'm not saying it will be immediate nor swift.  It might be but this is still a market firmly manipulated by the federal government and the Federal Reserve.

The key point is to recognize the shift underway as that has impact on your future finances.

As always, I'm happy to discuss your specific needs and plans.  You can find the best means to contact me here at www.brettgrendahl.com

Brett

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Expect Rising Prices for Mortgage-Backed Securities

This weekend's news on the bailout of Cyprus has broken a taboo that will rattle the markets come Monday morning.

What taboo?

Well, as part of the bailout the government is assigning a levy (a tax) on bank deposits.  Oh great!  So, imagine you put money into a bank to keep it safe and the government puts a 6 to 9% tax on it being there.  Yeah, not so exciting as your safety has become too expensive.

The market shift on Monday should send money into U.S. bond markets, including the mortgage-backed securities.

This should help mortgage rates begin a move lower.  Let's see what the morning brings.

Articles on this topic:
http://blogs.marketwatch.com/thetell/2013/03/17/cyprus-deposit-levy-shakes-up-markets/

http://www.cnbc.com/id/100561394

BG

www.brettgrendahl.com

Where Homebuyers Find their New Home

here is a good article on how people find their new home
http://www.businessweek.com/articles/2013-03-07/why-redfin-zillow-and-trulia-havent-killed-off-real-estate-brokers

Feds to Keep Mortgage Rates Low

Good article on this topic here:

http://ml-implode.com/viewnews/2013-03-06_FedsToContinueToKeepMortgageRatesLow.html

BG

The Changing U.S. Homebuyer

Here is a great article that provides detail on something I find true in my mortgage practice, especially during my recent years in Silicon Valley.

http://www.mortgagenewsdaily.com/03052013_homeownership.asp

The melting pot that is the United States of America is seen on the front lines of the housing market.

BG
www.brettgrendahl.com

@brettgrendahl on Twitter

New Stock Market Highs

Five years later and we see the Dow Jones Industrial Average make its way to new record highs.  This is occurring with mortgage rates for both conforming and jumbo loan programs remaining near record lows.

Weird relationships in the financial markets these days.

What to expect for mortgage rates?  

Well, it continues to be hard to predict out very far but I do not anticipate much for movement in rates until the 2nd half of 2013.

You should expect to hear the Fed "talking" the market before they take action to adjust their Overnight Rate.  We see a little of that happening but nothing substantial yet.

Just a quick observation for the day with the Dow Jones taking the headlines.

BG