Mortgage rates finally broke the 8% ceiling this week after months of gradual upward movement in the 7% range. At the same time, Existing Home Sales fell to the lowest levels in more than a decade. Pretty gloomy, but there are silver linings and perhaps even some overly optimistic Kool Aid to drink. As always, we’ll try to focus on the warm bowl of porridge in the middle.
Source: Kevin Litwicki MBSLIVE
Doom, Gloom, Kool Aid, And Warm Porridge

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After hitting the highest levels in decades last week, mortgage rates dropped sharply at the beginning of this week. At first glance, this was a classic flight to safety following the outbreak of the Israel-Hamas Conflict, but at the same time, markets were possibly just as interested in a change in tone from the Fed.
Source: Kevin Litwicki MBSLIVE
Rates Reacting to War and The Fed, But Maybe Not For Long

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Depending on the company you keep over this Labor Day weekend, you might hear that rates are high, housing in the verge of collapse, and the economy is headed for a hard, recessionary landing. Or you might hear that rates are coming down, housing has turned a corner, and the economy remains surprisingly resilient. No one is wrong, yet, and it’ll be a while before we find out who’s right.
Source: Kevin Litwicki MBSLIVE
It's Complicated, But Also Simple

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There was plenty of buzz ahead of Fed Chair Powell’s Jackson Hole speech, but it was a bit of a let down for bonds. Next week, however, is one of the more critical weeks of this monetary policy cycle as it will go a long way in determining whether we’ve hit a ceiling or will continue hiking.
Source: Kevin Litwicki MBSLIVE
Markets Were Anxious Over Powell, But Next Week Deserves More Attention

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At this point “high rates” are old news. We were already close to hitting the highest levels in more than 20 years last week, so it wasn’t a huge surprise to achieve that dubious distinction this Thursday. Some sources see the record-breaking rate at just over 7% for a 30yr fixed while others are over 7.5%. Both are accurate and we’ll explain why.
Source: Kevin Litwicki MBSLIVE
How Multi-Decade Highs Are Changing The Way Mortgage Rates Are Quoted

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