mortgage simple definition: Mortgage Rundown: May 30, 2019

Mortgage Rundown: May 30, 2019

Mortgage Rundown: May 30, 2019. Best Buys HMO Mortgage Rates

Mortgage Rundown: May 30, 2019 video duration 2 Minute(s) 37 Second(s), published by New American Funding on 30 05 2019 - 17:34:57.

Jason Obradovich, EVP of Capital Markets for New American Funding, is back with today's Mortgage Rundown
As trade tensions and growth concerns continue The FED has a multiple day meeting, but today is the day they are going to discuss interest rates.

Charlie Luke and Agata discuss mortgage products available for HMO landlords and the benefits behind them
Rates Correct as at 1st February 2019
Call us What will happen with mortgage rates in May 2019? Predictions, commentary, and forecast
The Mortgage Reports is owned and operated by Full Beaker, Inc Charlie Luke and Agata discuss mortgage products available for HMO landlords and the benefits behind them
Rates Correct as at 1st February 2019
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Jason Obradovich, EVP of Capital Markets for New American Funding, is back with today's Mortgage Rundown. As trade tensions and growth concerns continue, the lack of confidence in the market has caused bond yields to fall. If no trade deal is reached soon, the pressure on the market will continue to grow which will put pressure on the federal reserve to lower interest rates for the first time since 2008. Watch the full video to get the scoop on what to expect and look out for in the next few weeks.

To read more on Jason’s Market Update click here: http://www.newamericanagent.com/mortgage-rundown-may-30th-2019

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Hello everyone and welcome back to the Mortgage Rundown. Today we are going to talk about what’s happening with interest rates.

If you’ve been following the market you are well aware that rates continue to drop since mid November of last year. In fact the 10yr treasury is down 100bps in rate from November 8th until today.

Trade tensions are not going away, growth concerns continue to persist, home price appreciation beginning to level off and a lack of confidence in the market has bond yields falling. As you can see bond yields haven’t been this low since 2017. Currently the 10yr Treasury trades at a 2.22% yield and if it breaks below 2.05% then we could see it fall all the way to 1.75%.

There is real fear in the market today, especially considering how low inflation is despite a very strong jobs market. One of the key recessionary signals we want to watch out for is the shape of the yield curve, which is the spread between the 3 month and 10yr treasury. When the yield curve inverts, that is to say that the yield on the 3 month is greater than the yield on the 10yr, then it’s the market signaling that growth is likely to be constrained and could possibly predict a recession coming in the next 18 months.

Today the 3 month treasury bill yields 2.34% and the 10yr as I mentioned before is 2.22%. So the yield curve has inverted and that’s a signal of a possible recession ahead. A few days does not make a trend but it is something we will need to watch going forward. If the 10yr continues to trade below the 3 month treasury bill over the next 30 days then we could see interest rates continue to fall even further.

Speaking of the federal reserve, the odds of a rate cut in 2019 are up to a staggering 87%. If no trade deal is reached soon, the pressure on the market will continue and that’s going to put pressure on the federal reserve to lower interest rates for the first time since 2008.

In the coming weeks, you should keep an eye on the following items:
• By and large the most important thing to watch is the 10yr treasury. If it holds below 2.3% then we could see rates continue to move lower over the next several months. If it pushes back above the 3 month treasury bill then rates may settle and move a little higher.

• The trade war continues to plague the market and rates. If there isn’t a solution in the short term, fear could continue to drag rates lower and lower.

That’s it everyone from the capital markets desk this week. Thank you all for watching and have a great day.