Alec McCurdy, Mortgage Loan Originator NMLS # 1290246

06/16/2022

05/31/2022

Some Good News on Rates

This past week, home loan rates improved to the best levels in a month. The 10-yr Note yield closed beneath 2.80% for two consecutive days for the first time since April 13th. Moves like these begin to suggest that rates may have peaked. The main reason for the decline in rates is due to rising fears of a recession.

A barrel of oil is at $112 despite measures like tapping the Strategic Petroleum Reserves and China still in a big lockdown with its zero-covid policy. There is a rising concern that oil prices will move another leg higher upon China's eventual full re-opening and demand increasing sharply. Another oil spike would be unwelcomed just as the Federal Reserve is set to raise rates by .50% in each of the next two months.

Speaking of the Fed, the financial market is starting to sense the Fed will pause after a couple of rate hikes. The incoming economic data will determine how far the Fed will go.

-Mortgage Market Guide, LLC

05/26/2022

I hope everyone enjoys their Memorial Day Weekend. Lets honor the men and women that have sacrificed everything for us!

05/17/2022

Rockwall is making its way on the map! Let my team help you purchase with us boujee Rockwallians!

05/16/2022

~~What Causes Home Loan Rates to
Move Up and Down?~~

The Federal Reserve monitors the U.S. economy and, when necessary, takes steps to address inflationary concerns to avoid economic recession. When the Fed discusses interest rates, it is primarily concerning the Fed Funds Rate, which is the rate banks use when lending money to each other overnight.

Home loan rates, on the other hand, are dictated by the trading of Mortgage Backed Securities (MBS), which are a type of Bond.

At the real heart of home loan rate movement is the dual relationship between Stocks and Bonds, as they compete for the same investment dollars on a daily basis. Inflationary pressures, economic conditions and geopolitical events all influence the direction of both Stocks and Bonds.

When economic reports are weak or disappointing, investors often move their money from riskier investments like Stocks into Bonds, which are considered safer. Since home loan rates are tied to Mortgage Bonds, this helps home loan rates improve.

In contrast, strong economic news often causes investors to move their money into Stocks to take advantage of any gains. This can cause Mortgage Bonds and home loan rates to worsen.

Inflation reduces the value of fixed investments like Bonds. This means that a low inflation environment tends to be good for Mortgage Bonds and home loan rates, while high inflation can cause both to worsen.

Political turmoil or economic crises around the world can also cause investors to move their money into the safety of the Bond markets, helping Mortgage Bonds and home loan rates improve.

If you are second-guessing whether now is a good time to purchase a new home, get in touch. We'll analyze your financial situation and create a plan that's right for you.

05/09/2022

The rising cost of living, integrating e-signatures, and more.

05/03/2022

Well… pretty straight forward, rates are going up! If you’re shopping for a new home, get prequalified asap and lock in your interest rates.

Let’s talk about the truth in todays economy:
- rates are high (although still lower than what we’ve seen in the past)
- home prices are high and increasing daily
- inflation is high and absurd
- inventory is low…

If you’re buying, what should you do? Obviously, you call me! Let me and my amazing team show you how to win in this economy!