Author: Lending Agent
The recent absence of volatility in day-to-day mortgage rate movement has been an easy target for light-hearted indignation among market watchers. But to be fair, if rates had been moving swiftly higher/lower/both, most market watchers would wish for some sideways stability. In fact, for most prospective borrowers as well as mortgage professionals, the only thing better than sideways stability is a healthy drop to lower levels. Now, after a week of utter flatness, we finally have such a drop. Rates are determined by trading levels in the bond market and bonds can be influenced by many factors. One of the…
If you like your mortgage rate movement boring and minimal, this week’s for you (and last week, and the week before that). Going all the way back to January 17th, the average lender hasn’t changed their top tier 30yr fixed rate quote by more than 0.05%, and has been operating in an overall range of 0.07%. To get an idea of how narrow that is, a typical highly volatile day involves rates moving by more than .12%. In stark contrast, the average rate hasn’t changed by even 0.01% since last Thursday. This stability isn’t for lack of apparent inspiration for…
We know that mortgage rates are driven by financial markets and we know that financial markets have experienced volatility amid the roll-out of new tariffs over the weekend. But rates are starting the current week right in line with Friday’s latest levels (themselves, little-changed from any other day last week). Part of the paradox is down to timing. Specifically, the bonds that underly day-to-day rate movement are indeed experiencing volatility, but it’s all coming out in the wash, so to speak. Big moves in one direction have frequently and rapidly been offset by moves in the other direction. In addition,…
The U.S. housing market was already struggling under the weight of high mortgage interest rates, a low supply of existing homes for sale and historically high home prices.Now tariffs on building materials are adding even more pressure.Roughly 30% of softwood lumber consumed in the U.S. is imported, largely from Canada. Wallboard, known as gypsum, is imported from Mexico. The 25% tariff President Donald Trump levied on goods from the two key trading partners will make those products that much more expensive. The Mexico tariffs were postponed for a month Monday, but they are still on the table in the future.“More than 70% of the imports of…
When the COVID-19 pandemic disrupted global supply chains, the housing market felt the shockwaves. From lumber shortages to delayed shipments of windows and garage doors, homebuilders and fix-and-flip investors faced challenges that fundamentally changed the way they operate. But as the dust settles, we’re seeing key lessons emerge—ones that savvy investors can apply to navigate the future. The Post-COVID Reality The supply chain disruptions of the past few years were unprecedented. Items that were once afterthoughts, like shingles or insulation, became bottlenecks that stalled projects for weeks or months. For builders, this meant increased costs and extended project timelines. For…
For all of the news that seems to be highly likely to cause volatility for rates, the market reaction ended up playing out on a very small scale. The biggest day of movement was Monday, with rates opening moderately lower versus the previous week after the big AI-driven stock sell-off pushed some investors into the bond market (when traders buy more bonds, rates move lower, all other things being equal). The second half of the week featured a Fed announcement and multiple headlines surrounding big, new tariffs on Mexico, Canada, and China. To be fair, the bond market definitely reacted…
Signed contracts on existing homes dropped a sharp 5.5% in December from the previous month and fell 5% from the prior year, according to the National Association of Realtors.The drop followed four straight months of gains and the index was at its lowest level since August.These so-called pending sales are an indicator of future closings and are the most current indicator of activity in the market. Buyers out shopping in December were facing a big jump in mortgage interest rates, which may have dampened demand.The average rate on the 30-year fixed mortgage went from a low of 6.68% on Dec.…
Heading into today’s Fed announcement, we didn’t expect to receive any significant surprise on the stance of monetary policy. Financial markets had long since ruled out the possibility of a rate cut and we knew Powell could only really acknowledge recent progress in inflation data while maintaining that more progress is needed for additional rate cuts. In not so many words, that’s exactly what happened. In so many words, there was a bit of back and forth in the underlying bond market between the 2pm policy statement and the 2:30pm press conference. A verbiage change in the statement caused bonds…
Housing affordability has become one of the most pressing issues in America. From rising home prices to rental shortages, the challenge of providing affordable housing has captured the attention of policymakers at all levels. As the debate heats up, one question looms large: Can the housing industry meet the growing demand while navigating the web of political expectations and regulations?To understand this complex issue, we need to explore how municipal and federal policies are shaping the housing landscape—and what it means for developers, investors, and consumers.The Affordability Crisis: Where We Are NowThe numbers paint a stark picture. Home prices have…
In recent years, the build-to-rent (BTR) sector has transitioned from a niche idea to a game-changing trend in the housing market. For real estate investors, this shift presents a unique opportunity to capitalize on steady cash flow, resilient demand, and an evolving renter base. At Dominion Financial Services, we’ve been keeping a close eye on this sector and want to share why it’s worth your attention.Why Build-to-Rent Is ThrivingBuild-to-rent (BTR) properties are in strong demand and perform reliably. Specifically, these purpose-built rental communities, often featuring modern amenities, are sought out by families and professionals who crave the feel of a…