Americans Upbeat About Housing


Brenda Borum
Keller Williams WVC
Phone: 805-844-6183
Lic: CalBRE# 00698082
Email: [email protected]
Certified Mortgage Planner
Bob Brenner
Certified Mortgage Planner
Synergy One Lending
NMLS#: 240029
Phone: 805-427-3538
Email: [email protected]



Rates At a Glance

Mortgage Rates
Currently Trending
7 Day Mortgage
Rate Forecast
This Week’s
Potential Volatility
Neutral Neutral Average
(by Sigma Research)



Realtor Report

Americans upbeat about housing

A recent survey by Digital Risk showed that over half of homeowners believe the housing market in their region and nationwide has improved. It also found that the majority of homeowners (91%) and renters (83%) view home ownership as a good investment. The survey of 1,057 U.S. homeowners and 509 renters was conducted between May 26 and June 2.

Confidence in the housing sector is being driven by a noticeable increase in home values. Eighty-seven percent of homeowners have seen their appraisal values holding or increasing, while just 12% saw a decrease. Sixteen percent saw gains of more than 20% in value.

Barriers to the housing market remain, however. Forty percent of renters said they could not afford the down payment. Insufficient income was cited by 37% of respondents, while 33% stated that they preferred renting to ownership. When asked what would make the decision easier to purchase a home, 40% percent cited debt forgiveness, 36% said a life event such as marriage or children and 31% percent said lower credit requirements would push them into the market.

While homebuyers are upbeat on the housing market, 70% of homeowners and two-thirds of renters indicated they would not be comfortable managing the entire process via a smartphone application. And while two-thirds of homeowners and 59% of renters said they would be willing to complete an application on-line, about half of all respondents said they would prefer to speak to a representative in person during the process.



This Week’s Mortgage Rate Summary

How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market.  This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events.  When MBS pricing goes up, mortgage rates or pricing generally goes down.  When they fall, mortgage pricing goes up.  Tracking these securities real-time is critical.  For more information about the rate market, contact me directly.  I’m among few mortgage professionals who have access to live trading screens during market hours.

Rates Currently Trending: Neutral

Mortgage rates are trending sideways so far today.  Last week the MBS market improved by +20bps.  This was enough to slightly improve mortgage rates or fees.  The market experienced relatively low volatility.

This Week’s Rate Forecast: Neutral

Three Things: These are the three areas that have the greatest ability to impact mortgage rates this week: 1) Central Bank, 2) Geopolitical and 3) Across the Pond.

1) Central Bank: While we await our own Fed next week, we have two important Central Bank meetings this week. Both on Thursday. The Bank of Japan will hit first in the early morning, important to watch but the markets are not anticipating anything new from them. The biggest event of the week is the European Central Bank policy statement that same morning. This one has some wiggle room. President Mario Draghi made some comments two weeks ago about being close to a point where start to pull back on their bond purchases. This actually started two straight weeks of long bond sell-offs (higher rates). The market will react swiftly to any “hawkish” commentary or policy change from the ECB.

2) Geopolitical:  The second round of Brexit Talks starts this week will dominate the markets internationally. Domestically, Health Care and Tax Reform will get the most attention. It looks like for now Health Care is stuck, but it also looks like momentum and efforts are shifting to getting Tax Reform moving forward. Reduced taxes will be a significant economic stimulus.

3) Across the Pond:  We get some very big releases from the top 5 economies. China – Retail Sales and GDP, Germany – PPI, Eurozone – CPI, Great Brittan – CPI and PPI, Japan – Imports/Exports.

This Week’s Potential Volatility: Average

There’s not a lot of economic data coming out this week that will likely move mortgage rates. Thursday, we could see some volatility due to ECB policy statement noted above.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.



About Bob Brenner

My goal is to provide an uneventful mortgage experience that is so barely noticed from beginning to end that it will be remarkably pleasing at closing. I teach my clients how to use their home loan as a tool in planning, creating, and securing a lasting foundation for long-term wealth.



About This Report And Disclosure Information

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

Licensed by the Department of Business Oversight under the California Residential Mortgage Act. Synergy One Lending, NMLS# 1025894.



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