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Mortgage Rates Are Plummeting
What happened last week that mortgage rates are plummeting. The 30-Year Treasuries dropped to 3.8% which tanked mortgage rates on government loans from 7.0 to 6.0%. 30-year U.S Treasuries were as high as near 5.0% just a few weeks ago. Gold increased to over 2,500 per ounce which is a historic high. Silver did not follow gold prices because banks were short selling Silver like crazy because banks and the Globalists have a huge short position and are afraid of getting margin calls on their Silver short positions. What economic numbers came out that caused the financial markets upside down? Will mortgage rates continue to plummet? Will it be beneficial to refinance now? How about doing Streamline Refinance on FHA and VA Loans? If I do an FHA or VA Streamline Refinance loan, can I do another FHA Streamline or VA Streamline Refinance loan if mortgage rates drop again? What are rates on conventional loans?
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8 Replies
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Recent Economic Data Impacting Mortgage Rates
Mortgage rates plunged last week because of a host of critical economic indicators. Here’s what happened:
Federal Reserve Decisions:
For the fourth time in a row, the Federal Reserve has kept its interest rate steady, indicating an end to its rate-hike campaign. This stability in the federal funds rate and the Fed’s successful job at lowering inflation have lowered mortgage rates. Even though Fed decisions directly affect short-term rates more than long-term mortgage rates, the overall economy shifted toward lower mortgage rates.
Inflation Numbers:
Recent reports on inflation have revealed a dramatic slowdown. The Personal Consumption Expenditures (PCE) price index—the Fed’s preferred measure for inflation—has shown that inflation is getting closer to its target level. This price decline was one of the most important reasons behind falling mortgages because when there are low levels of increased costs over time, lenders’ long-term risksare reduced (Investopedia)(The
Treasury Yields:
After hovering around nearly 5% just weeks ago, 30-year U.S. Treasury yields fell to about 3.8%. Since both these interests are influenced by similar economic factors, such as investor demand for safe assets or expectations regarding future price levels, usually, treasury yields move together with mortgage rates too, so they have also decreased recently due to their nature being tied up closely.
Market Sentiment:
Amid uncertainty about where things stand globally, people have started looking towards safer investments like U.S. Treasuries, which has recently caused a lot of movement within markets. This has led us here today, where we see much lower borrowing costs than before when everyone thought otherwise would happen—but it didn’t happen at all!
Current Mortgage Rates and Refinancing Opportunities
- 30-Year Fixed: ~$6.49%
- FHA 30-Year Fixed: ~$6.18%
- V.A. 30-Year Fixed: ~$5.91%
- 15-Year Fixed: ~$5.58%
Refinance Now
Given how significantly interest rates have fallen since your original loan was taken out, this might be worth considering, especially if current higher ones were applicable. Then, monthly repayments would decrease, saving money over the total lifespan.
FHA And VA Streamline Refinances:
You can benefit from streamlining refinance programs offered by FHA/VA without needing much documentation or requiring a new appraisal done again later, after another round or two. This potentially occurs later, depending on whether specific waiting times exist between different lenders. Always remember, however!
What About Tomorrow?
Even though indicators suggest a continued downward trajectory, there remain various unpredictable elements influencing them, including upcoming inflation figures released soon, followed closely behind by subsequent shifts occurring throughout the entire economy, leading ultimately towards specific policies set forth and eventually implemented soon thereafter, hopefully sometime next year, maybe even sooner rather than later who knows? So stay tuned, folks! But until then, happy hunting out there, everyone else looking around town to find the cheapest deals available statewide nationwide wherever possible.
Best wishes and good luck, and always remember to keep smiling. Cheers, mates, hooray!!!
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The market is manipulated by the Federal Reserve Board, the government, and the mainstream media. The economy is not doing great like Joe Biden, the Biden Administration, Fed Chairman Jerome Powell, and the mainstream media says. Unemployment numbers came out yesterday which data reveal unemployment numbers increase from 3.3% to 4.3%. Those numbers are misleading and not correct. True unemployment numbers is more like 20%. They are counting part-time jobs, temporary jobs, and employment of workers who are over qualified and taking on jobs just to make ends meet. There is no reason why the Dow Jones Industrial Average should be at 40,000. There is no reason why home prices should increase 50% to over 100% in value in a period of a few years. There is no reason why interest rates should skyrocket like the way it did. There is no doubt Joe Biden, Jerome Powell, Janet Yellen, Kamala Harris are incompetent and do not know what they are doing. You cannot keep on printing money. You cannot have a monetary policy and system where the money is not backed by assets such as gold and silver. You need a leader other than the current incompetent clowns we have to lead the United States and is familiar with economics and the financial markets. We have too much regulation. We have too many incompetent clowns entrusted with major things that affect the lives and livelihood of the American people and American businesses. We have too much corruption and patronage. How can a career politician who never ever had a real job besides be a politician making a nominal salary for 50 plus years (which is all of his working life) become a multi-millionaire. Politicians should not be able to profit from taxpayers. Politicians should not be able to serve half a century and become millionaires. Politicians should have maximum term limits. Career politicians are corrupt, take bribes, live in a patronage system, and think they are above the law.
Mortgage rates and refinancing are subjects I can discuss in a general way:
Market Influences:
Inflation, economic growth, and Federal Reserve policy affect mortgage rates.
Releasing important economic data or geopolitical events can lead to rapid rate shifts.
Refinancing Choices:
A refinance is advantageous if you can reduce your rate by at least half a percentage point to one full point.
Weigh the costs of refinancing against potential long-term savings.
Streamline Refinancing:
Existing borrowers have streamlined refinance options through FHA and VA.
These tend to be less expensive and have fewer requirements than other type of loans.
Multiple Streamline Refinances:
You may do more than one streamline refinance, but there will typically be waiting periods (often between 6 and 12 months) before doing so.
There are guidelines specific to each program regarding frequency.
Conventional Loan Rates:
Several factors, such as credit score, LTV ratio, or loan term, cause daily rate fluctuations.
Per my last update, conventional mortgages were generally slightly costlier than government-backed ones like FHA or VA loans.
Gold And Silver Prices:
Economic uncertainty around the world, coupled with inflation expectations within them, affects precious metal prices, which vary based on global currency movements.
Market Predictions:
Accurately predicting future rate movements is nearly impossible because they depend on unpredictable variables. These include broader economic conditions and policy decisions made by central banks such as the Fed over time intervals lasting from weeks to years into the future.
Therefore, it’s best not to guess where things might go next when dealing with mortgage investments since significant uncertainty always remains. This holds, regardless of whether we can accurately predict what happens tomorrow, let alone next month or year!
To get information about current mortgage rates, go online and look at news sites related to the finance/real estate industry. Then, talk directly to lenders who work these markets daily, week after week, month after month, year-round, without fail. Given the time available in each person’s lifetime, they know all the latest trends better than anyone else could ever hope to understand.
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30-Year Treasuries at 3.799% folks. Mortgage rates are dropping fast.
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What are mortgage rates on FHA Loans today?
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Mortgage rates on FHA loans are lower than rates on conventional loans.
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FHA Loan Rates Today (August 5, 2024)
As of today, August 5, 2024, the average rates for FHA loans are as follows:
- 30-Year Fixed FHA Mortgage Rate: 6.84% with an APR of 6.89%.
- 15-Year Fixed FHA Mortgage Rate: Around 5.99%.
Understanding Mortgage Rate Movements
How U.S. Treasuries Influence Mortgage Rates
- U.S. Treasury yields heavily influence mortgage rates.
- Especially the yield on the 10-year Treasury note.
- Mortgage rates follow suit when Treasury yields fall since both are long-term investments.
- Lower yields on Treasury securities typically suggest stronger demand for these safe assets, which can lead to lower mortgage interest rates because lenders can offer cheaper loans.
Impact of the Dow Jones Industrial Average
Although there is no direct relationship between the Dow Jones Industrial Average (DJIA) and mortgage rates, a correlation exists with broader economic conditions. A sharp decline in the DJIA indicates economic distress, prompting Federal Reserve officials to cut interest rates to stimulate growth. In this case, we also expect lower mortgage rates.
Factors Driving Upward Pressure On Mortgages
There are several reasons why mortgage costs might increase:
- Inflation: Higher inflation translates into higher interest payments from borrowers who lose purchasing power over time.
- Federal Reserve Policy: To counteract rising prices, the Fed will typically hike its benchmark rate, increasing borrowing costs, including mortgages.
- Economic Expansion: Increased credit demand during robust growth tends to push up the overall cost of funds.
- Government Borrowing: Higher government debt levels result in rising treasury yields, which are reflected in higher-priced home loans.
Factors That Might Lower Your Home Loan Costs
- Economic Slowdown: When business activity contracts.
- This usually leads policymakers at central banks like ours in America to cut their target overnight lending rate.
- Thereby reducing all other short-term borrowing costs, including those associated with housing finance.
- Low Inflation – Lenders do not require additional compensation through higher interest payments in a stable price environment.
Safe Haven Buying – Economic uncertainty causes people to flee towards safety by buying treasuries, pushing down their yields and consequently lowering home loan costs.
Current Economic Climate and Rate Forecasts
Why Are There Changes In Interest Rates?
- Recently, mixed signals from different parts of the economy led to volatility within mortgage markets.
- Where prices have been swinging back and forth rapidly.
- Other contributing factors include good news concerning inflation and a cooling labor market that has raised expectations regarding potential Fed cuts later this year.
- I am putting downward pressure again on housing finance charges.
Expectations Regarding U.S. Treasury Securities
Based upon incoming data releases closely tied together, along with any subsequent actions taken by Federal Reserve board members, it can be anticipated that U.S. treasury yields will experience some fluctuations over time. If they do lower benchmarks as widely expected, this could lead us towards cheaper mortgages.
Long-term Prediction for Home Loan Pricing Over the Next Five Years:
More Control on Inflation:
Along with slower growth, there would be mildly decreasing interest rates.
However, these happenings should be understood in light of the wider context surrounding the overall economy and decision-making processes at the Fed level. Without warning, this could change everything dramatically overnight—just like lightning strikes twice!
Advice Given To Borrowers: Consider refinancing options available now because they have fallen slightly recently, especially among FHA loans where documentation requirements are less rigid than those of other types, such as conventional ones. So look into streamlining refinance programs offered by various lenders who may be willing to offer you lower monthly payments than before. Due to improved market conditions since you took out your original loan the last time.
To get the best deal possible, always shop around, comparing offers made by different companies based on total cost. This includes mortgage insurance premiums required. Monthly installments added to the principal balance amortized over thirty years should cover all expenses incurred during the life span. Ownership property acquired using proceeds obtained from the sale of the previous one lived before moving into a new house purchased recently either directly or indirectly through investment vehicles such as REITs mutual funds, etc. So make sure you factor those things into your calculations when determining how much money you need to borrow each month to achieve the desired level of satisfaction, happiness, quality of life, standard, expected minimum requirement, fulfillment, personal obligations, responsibilities towards children, spouse, family members, friends, colleagues, employers, themselves pets, hobbies, etcetera ad infinitum.
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What are mortgage rates today August 6th, 2024. The 30-Year Treasuries dropped to under 4.0% which tanked mortgage rates on government loans. 30-year U.S Treasuries were as high as near 5.0% just a few weeks ago. Gold increased to over 2,500 per ounce which is a historic high. Silver did not follow gold prices because banks were short selling Silver like crazy because banks and the Globalists have a huge short position and are afraid of getting margin calls on their Silver short positions. What economic numbers came out that caused the financial markets upside down? Will mortgage rates continue to plummet? Will it be beneficial to refinance now? How about doing Streamline Refinance on FHA and VA Loans? If I do an FHA or VA Streamline Refinance loan, can I do another FHA Streamline or VA Streamline Refinance loan if mortgage rates drop again? What are rates on conventional loans?
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Current Market Overview – August 6, 2024Dow Jones Industrial Average and Other Stock Markets
Today, the Dow Jones Industrial Average (DJIA) rose by 300 points, bouncing back after a significant drop the previous day. The recovery followed a global market sell-off triggered by recession fears and disappointing job growth data in the U.S. The Nasdaq Composite and the S&P 500 also saw gains of 1.23% and 1.25%, respectively.
Secondary Mortgage Bond Markets
The drop in U.S. Treasury yields to below 4.0% has significantly influenced the secondary mortgage bond markets. Lower yields typically result in reduced mortgage rates as investors seek safer assets, which lowers borrowing costs. This trend contributes to the recent decline in mortgage rates for government loans, including FHA and VA loans.
Current Mortgage Rates
As of August 6, 2024, the average mortgage rates are:
- 30-Year Fixed-Rate Mortgage: 6.69%
- 15-Year Fixed-Rate Mortgage: 6.16%
- 5/1 Adjustable-Rate Mortgage (ARM): 6.02%
These rates have decreased from the previous weeks due to the fall in Treasury yields and market expectations of future Federal Reserve rate cuts.
Factors Driving Market Volatility
- Economic Data: The recent jobs report showed weaker-than-expected job growth and a higher unemployment rate, raising concerns about the health of the U.S. economy.
- Federal Reserve Policies: The anticipation of rate cuts by the Federal Reserve is growing. Traders are now pricing in a high likelihood of a rate cut at the Fed’s September meeting, driven by signs of cooling inflation and economic slowdown.
Precious Metals Market
Gold prices have surged to over $2,500 per ounce, a historic high, due to increased investor demand for safe-haven assets amid economic uncertainty. In contrast, silver prices have not followed gold’s rise. This is largely because of significant short-selling by banks trying to manage their large short positions.
Future Outlook for Mortgage Rates: Will Mortgage Rates Continue to Plummet?
Mortgage rates are expected to remain volatile but may continue to decrease if the Federal Reserve implements the anticipated rate cuts. Lower inflation and weaker economic data support the possibility of such cuts.
Refinancing Considerations
- Current Opportunity: With the current drop in mortgage rates, it may be beneficial to refinance, especially for FHA and VA loans, which can be streamlined to lower rates with minimal paperwork.
- Future Refinancing: Homeowners can refinance multiple times if mortgage rates continue to drop, provided they meet the lender’s requirements each time.
Conclusion
The financial markets are experiencing significant volatility driven by economic data and Federal Reserve expectations. For homebuyers and homeowners, the current lower mortgage rates present a good opportunity for refinancing. Monitoring economic indicators and Federal Reserve announcements will be crucial in predicting future trends in mortgage rates.