The timing of 2016’s massive spike in interest rates sets us up to see a big shift in the tone of housing and mortgage-related data in 2017. There is already a wide variety of opinions on the matter–most of them fairly dire. How warranted are they?
Source: Kevin Litwicki Universal Lending
Housing Data Already Reflecting Rate Spike?
Highest Rates in Years Raise Questions About Housing in 2017
Just this week, Freddie Mac referred to 2016 as the best year for housing in a decade before going on to say that 2017 is up in the air. With rates having risen rapidly to the highest levels in more than 2 years, “up in the air” is an understatement.
Source: Kevin Litwicki Universal Lending
Highest Rates in Years Raise Questions About Housing in 2017
Rate Spike is Better and Worse Than You've Been Told
Volatility is back with a vengeance since the election–especially for rates. Just when it looked like things might be calming down, this week’s Fed Announcement resulted in a spike to the highest levels in well over 2 years. As various media outlets rush to cover the drama, some stories have overplayed the drama while others fell short of relaying the true severity of the move.
Source: Kevin Litwicki Universal Lending
Rate Spike is Better and Worse Than You've Been Told
Europe Tapers, But Without The Tantrum
While the Fed has managed to avoid embarking on a 4th round of quantitative easing (or “QE,” a term referring to large-scale asset purchases by central banks), European QE has been going full tilt since early 2015. Markets began to suspect the European Central Bank (ECB) might make its own tapering announcement in recent months and this week, it pulled the trigger. Will the fallout be the same for rates this time around?
Source: Kevin Litwicki Universal Lending
Europe Tapers, But Without The Tantrum
What's Really Keeping The Mortgage Market up at Night?
Interest rates surged to 2-year highs this week, apparently in response to Wednesday’s news that OPEC countries struck a deal to limit oil production. True, if OPEC is willing to do what it takes to push fuel prices higher, it only adds to the inflationary fears already pushing rates higher. But even though the OPEC news dominated this week’s headlines, there are more important things keeping housing and mortgage markets up at night.
Source: Kevin Litwicki Universal Lending
What's Really Keeping The Mortgage Market up at Night?