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?

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

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

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

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?

The post-election spike in mortgage rates kicked into higher gear this week, with most lenders near the worst levels in more than 2 years. In bittersweet juxtaposition, this week’s Existing Home Sales data (from October) was the best in nearly 10 years! Is the writing on the wall for the housing market? Yes and no.
Source: Kevin Litwicki Universal Lending
Rapidly Rising Rates: Writing on The Wall For Housing?

By now, you’ve probably heard that mortgage rates have spiked at a brutal pace to the highest levels of the year in the wake of the election. This week’s newsletter examines what that move was about, and what it was NOT about, as well as the possibility of bouncing back.
Source: Kevin Litwicki Universal Lending
Why Did The Election Kill Rates and Can They Come Back?

Heading into the election, interest rates tended to rise with Clinton’s chances of victory. But it was a Trump victory that sent rates on their wildest ride since the 2013 Taper Tantrum. Why?!
Source: Kevin Litwicki Universal Lending
Election Unexpectedly Sparks Massive Rate Spike

Interest rates of all shapes and sizes have been in an undeniable uptrend for more than 4 months. Why is it happening? And how bad could it get?
Source: Kevin Litwicki Universal Lending
For Rates, One Thing is Even Scarier Than The Election

Several reports on home sales and prices were fairly strong this week, suggesting the housing market continues making steady progress. But rising rates force us to question how long the good times can keep rolling.
Source: Kevin Litwicki Universal Lending
Rising Rates Rain on Housing Data Parade