Mortgage News Weekly 11/11/19

In This Issue…

Last Week in Review: How Fast Rates Can Change

Forecast for the Week: Saluting Our Veterans

View: Use Your Camera Skills to Take Better Photographs for Business

Last Week in Review:

How Fast Rates Can Change

Right now, the biggest news story to follow is the U.S. and China trade negotiations.

This past week, home loans started inching higher but were “saved” momentarily midweek when reports came out suggesting a delay of a “phase one” trade deal signing. Remember that Bonds and home loan rates like bad news, so a disruption or delay of the trade signing was the reason for rates to improve off the worst levels midweek.

However, come Thursday, word that both the U.S. and China would roll back tariffs as a deal gets put together was very good news which pushed Stocks to all-time highs at the expense of Bonds and home loan rates.

Even with the recent uptick, home loan rates are at the same level they were at back on July 31st when the Fed cut rates for the first time in 10 years. The Fed has since cut rates two more times and home loan rates have not improved any further.

A word of caution: long-term rates like mortgages can move up very fast, and it is in a complacent environment like today when things suddenly change. Using history as an example, the 10-year Note yield has traded at 1.40% or lower on three separate occasions in the past seven years. In the two previous times — 2012 and 2016 — the 10-year yield quickly spiked to 3% and 2.75% respectively in just six months. This sharp move higher in yield also weighed on home loans, which also rose sharply.

Bottom line: if you or someone you know is considering a new mortgage, now may be an opportune time before this window closes.

If you or someone you know has questions about home loans, give me a call. I’d be happy to help.

Forecast for the Week:

Saluting Our Veterans

The upcoming holiday-shortened week will feature a few key economic reports from consumer spending, manufacturing, and consumer inflation.

The Bond markets are closed on Monday in observance of Veterans Day.

On the inflation front, last week, Chicago Fed President Charles Evans said it’s very difficult to generate inflation in the current U.S. economic environment. If inflation doesn’t go up, there is a limit to how high home loan rates can go — which is a good thing.

With earnings season just about ending, the markets will continue to follow the biggest story, the U.S./China trade headlines.

Reports to watch:

The inflation reading Consumer Price Index will be released on Wednesday followed by the Producer Price Index on Thursday.
Retail Sales will be released on Friday along with the Empire State Manufacturing Index.

The Mortgage Market Guide View:

Use Your Camera Skills to Take Better Photographs for Business

Having quality photographs is important when you are in the real estate industry, and it takes more skill and equipment than just snapping shots with your cell phone. In order to make your listings appealing and inviting, take a few online courses and invest in a good digital camera so that your photographs will sell your properties. Find a company, tutor, or school that teaches these three online courses.

Beginner digital photography. Unless you’re a photography professional or are serious about photography as a hobby, you may not really understand how your camera works. There are lots of different settings that once you master, will help improve your photography skills and make your photos stand out.
Mastering architecture and real estate photography. Real estate photography requires special skills. Often, you’re trying to take pictures of small rooms that require awkward angles or large expanses that you are trying to get into one picture. In addition, proper lighting is essential for both interior and exterior photos. Learn these skills and the type of equipment you need to capture those stellar photos that will help you show the property at its best.
Mastering Adobe Photoshop CC. Even the most seasoned photography professional needs to spruce up their photos. Taking the time to learn and master Adobe Photoshop will help your photos look professional. You can brighten or darken areas of a room that didn’t have the proper lighting and generally give your photos a nice, polished finish.

There are lots of free and paid-for classes available, so start mastering your photography skills today!

Sources: Udemy, Medium.com

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose. Feature photo by Lora Ohanessian.