2012 was a scary time for global financial markets, and that fear resulted in a golden age for mortgage rates. Fast forward to present day and it’s not as blatantly obvious in the US, but the global economy is still very much in the weeds. As of this week, European rates are back at their all-time lows for the second time since the European credit crisis.
Source: Kevin Litwicki Universal Lending
The Real Reason Mortgage Rates Are Near 3-Year Lows

Ever since the Fed stepped in to save the mortgage market in 2008 by announcing that it would buy mortgage-backed-securities, the relationship between central banks and financial markets became more intertwined than it already was.
Source: Kevin Litwicki Universal Lending
The Paradox of Central Banks and The Mortgage Market

By most measures the housing market has been improving consistently since at least 2010. Some would say that the pervasiveness of the improvement was only made possible by the housing crisis setting such a low starting point, but that’s neither here nor there.
Source: Kevin Litwicki Universal Lending
Jury Still Out on Rising Rates and Housing Downturn

Whether or not the housing market actually needed to catch a break is definitely a matter of perspective. After all, we can’t be too upset about persistently decent housing data and mortgage rates in the high 3’s.
Source: Kevin Litwicki Universal Lending
Housing Market Catching a Much-Needed Break

Last week’s headline asked if this could be the “big bounce” for rates. Unfortunately, this week’s market movement has only strengthened the case for such a bounce. While rates are still historically very low, there are a few troubling caveats.
Source: Kevin Litwicki Universal Lending
Mortgage Rate Outlook Staying Scary

Until this week, interest rates had been grinding sideways in an exceptionally narrow range, just off the long term lows seen in early February. March’s biggest news has been the unequivocal break of that range—unfortunately, to the upside.
Source: Kevin Litwicki Universal Lending
Could This Be The Big Bounce For Rates?

Interest rates continue taking most of their cues from the fluctuations in oil and stock prices. This is a break from historical norms where rates have typically paid much more attention to economic data (the reports on various economic metrics that are released on a set schedule throughout the month).
Source: Kevin Litwicki Universal Lending
Volatility Means What You See Is Not Necessarily What You Get

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Source: Kevin Litwicki Universal Lending
What Does This Week’s Rate Spike Mean?

Without question, 2016 continues to be one of the wildest rides in recent memory for financial markets. This hasn’t been good for 401k balances, but it has been great for mortgage rates. The average 30yr fixed rate quote is now back to the lowest levels in more than a year.
Source: Kevin Litwicki Universal Lending
Lowest Rates in Over a Year. What Now?

Mortgage rates plunged to 8-month lows this week, defying most expectations. What’s up with that?!
Source: Kevin Litwicki Universal Lending
Predicting Rising Rates is a Very Dangerous Game