New Company! We are excited to announce that we are re-launching Mortgage Trust! After trying out the corporate world for 5 years we are excited to get the band back together and bring our local company back. You can expect the same great service, fast closings, great product selection, and better interest rates!
Mortgage Rates – improved over the last week as the price of Mortgaged Backed Securities (MBS) continues to trend upwards. Rates are up approximately 3% from this time last year.
Manufacturing – the Purchasing Managers Index fell from 46.4 to 44.6 in December which is the lowest number since April 2020 and the 6th consecutive month below 50 (in contraction). The PMI report is estimating a -1.5% annualized GDP reading for Q4.
Fed Monetary Policy – las week the Fed raised their Fed Funds Rate by the expected rate of 0.5% – this is an increase of 4.25% over the previous 9 months. Fed Chair Powell telegraphed a 0.25% in February, a continued slowdown in rate hikes which signals inflation is getting under control. The Fed Dot Plot (pictured above) shows where Fed voting members anticipate rates will be over the next 3-4 years.
Jobs – the number of people filing for unemployment for the first time declined by 20,000 last week to 211,000 – the lowest number since September. Continuing claims, which measures filing for unemployment benefits after their initial claim, has risen 9 consecutive months and is at the highest level in 10 months.
Mortgage Applications to purchase homes increased 4% last week and are down 38% year over year. Refinances rose 3% last week and are down 85% year over year.