Another week of rising interest rates as more positive economic news comes in. However, both the stock and bond markets seem to be overly sensitive to any news which is causing greater volatility. Most recently, the Producer Price Index rose more than expected which hit bonds and raised mortgage rates. In addition, the NY Fed President reiterated the Fed’s plan for gradual but steady increases to interest rates. Luckily, we might be seeing near term flattening of mortgage rates as the technical analysis indicates more stability in rates near term. Its always a moving target so make sure you are working with a mortgage professional who understands the markets!
As we have been mentioning for some time now, many of the players in the mortgage industry continue to cut jobs. In fact, these job cuts are picking up steam. Not only are Wells Fargo, USAA, JP Morgan Chase, and many other lending giants cutting staff, but also some of the smaller, local companies are doing the same. Mountain State Financial Group does not subscribe to this practice as this would hinder the exceptional services that clients have grown to expect.
Many of these job cuts are not without merit. As interest rates rise, clients are not able to afford the same homes they could have during lower interest rates which is dragging on home sales. If you have any clients who were pre-approved for a certain price point, you may want them to reach back out to their pre-approving mortgage professional to make sure you are not showing houses your clients can no longer afford!
As always, If you have any specific questions or scenarios you would like to discuss, I am always happy to help!