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Falling Stock Prices Halt (Briefly) the Mortgage-Rate Rise

Falling StockTo say stock prices have been volatile over the past week is to say Eagles QB Nick Foles played a decent game in the Super Bowl. It’s to understate the obvious. 

The Dow Jones Industrial Average dropped 1,175 points last Monday. The point drop, in absolute terms, was the largest on record.

A Rising Start to 2018

 Man Climbing Stairs

Market participants have anticipated rising mortgage rates for a while. Some have anticipated for years. If the recent trajectory of mortgage rates sets the tone for 2018, no one needs to anticipate anymore. 

What Does the New Tax Plan Mean for Homeowners?

Tax Law

Near the end of 2017, the federal government passed one of the most significant pieces of new tax legislation in years, known as the Tax Cuts and Jobs Act. With an unusually short time between the bill's creation and its final approval by President Donald Trump, taxpayers would be forgiven if they felt unsure about its ultimate effects on their budget. For homeowners in particular, the new tax law could change how some of us approach tax planning and budgeting. For others, though, the overall impact may be minimal.

Is It Different This Time?

 Percentage Rates

Given the number of false starts in recent years, it’s understandable to ask the obvious: Is it different this time, or is it another false start? 

Happy as a Clam, but Why?

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The unabridged version is “happy as a clam at high tide.” Whether unabridged or abridged, one must ask the following upon hearing the saying: Why should a clam be happy? Can a clam be happy? Who would want to be as happy as a clam?

Mortgage Applications Spike

House

To ring in the new year, Americans stuck to a few familiar patterns, like pledging to lose weight and hunkering down for a long winter. But according to the Mortgage Bankers Association, they also did something unusual: They applied for mortgages in droves.

Mortgage Rates at a 6-Month High: Blame China?

 01.16.2018

The “Butterfly Effect” attempts to explain how a butterfly flapping its wings in China causes a hurricane in the United States. If the butterfly had not flapped its wings at the precise moment in space and time, the hurricane would never have occurred.

The Year of Rising Mortgage Rates?

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This is the year. Then again, “this is the year” has been the mantra of prognosticators for the past five years. This is the year interest rates will rise. 

You could hardly blame someone for venturing out on the same limb to offer another higher-rate prognostication in 2018.

 

Still Sideways and Still Up, According to the Averages

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A Federal Reserve rate increase and tax reform dominated the financial news in December.

Housing Maintains Its Market Lead

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Housing has been the one constant since the 2008-2009 recession. Housing has consistently trended higher with activity. 

We’ve seen it in new-home sales. We’ve seen it in new-home starts. Starts, in particular, appear to have moved to a higher plane.