Mortgage Rates Continue Gradual Recovery

Mortgage rates hit 6 month highs by the end of last week, but they’ve been cautiously recovering since then. The rebound traces a similar pattern in the bond market, as is typically the case considering lenders rely on bonds as the primary ingredient in the interest rate recipe. In simpler, more normal times, bonds would be primarily concerned with economic reports, inflation, and government debt issuance. All of those things still matter, but because of covid, the market is picky about which economic reports it views as important. More importantly, the Federal Reserve’s bond buying program is an even bigger consideration at the moment. It is universally assumed that the Fed will begin reducing its bond purchases soon and that they will announce that intention next Wednesday. Even though everyone
Mortgage Rates Continue Gradual Recovery
Mortgage Rates Continue Gradual Recovery

Highest Rates Since April, But There's a Catch

Over the past 30 days, interest rates have risen sharply . This is true for both mortgage rates and bond market benchmarks like 10yr Treasury yields. But another version of the 10yr Treasury yield continues to operate near all-time lows . How can rates simultaneously be rising quickly but still near all-time lows? Inflation! As we discussed last week, inflation erodes the value of bonds. As such, bond yields frequently move in response to changes in inflation expectations (higher inflation = higher rates). That correlation is easily seen in the following chart: Obviously, something changed in 2020. But what changed specifically for bonds and inflation? For starters, the Federal Reserve immediately began buying massive amounts of bonds shortly after the pandemic began. This acted to keep yields
Highest Rates Since April, But There's a Catch
Highest Rates Since April, But There's a Catch

The CFPB Ombudsman’s Office celebrates Ombuds Day

This October 14th is Annual Ombuds Day, meant to increase awareness and help educate about the ombudsman profession.

The CFPB Ombudsman’s Office celebrates Ombuds Day
The CFPB Ombudsman’s Office celebrates Ombuds Day

Rates Fall For First Time in Over a Week

Closely following intraday moves for the bond market and mortgage rates means that seemingly insignificant time frames are actually important . For instance, it’s actually not too common for rates to make it more than 5 business days without falling at least once–even if only slightly. Thankfully, today’s modest drop in rates puts an end to just such a streak (rates hadn’t improved since last Monday). In a way, this improvement was almost ” owed ” to prospective mortgage borrowers considering yesterday’s counter-intuitive results (higher rates despite bond market gains). For a few moments this morning, it wasn’t entirely clear that we would see any improvement. Bonds initially balked at an inflation report released this morning ( spoiler alert: it’s still high), but were ultimately able to
Rates Fall For First Time in Over a Week
Rates Fall For First Time in Over a Week

The CFPB is looking out for families, workers, and communities

Today, I was sworn in as Director of the CFPB. I am honored to lead this organization, which plays an essential role within the Federal Reserve System.

The CFPB is looking out for families, workers, and communities
The CFPB is looking out for families, workers, and communities

Highest Rates in Months Despite Weak Jobs Report

It goes by many names: The Employment Situation, Nonfarm Payrolls (NFP), or simply “the jobs report.” No matter what you call it, the Labor Department’s massive collection of employment statistics is one of the most important events for the bond market every month. For a quick reminder as to why mortgage rates care about the bond market, here’s a chart of relative movement in the average 30yr fixed mortgage rate and 10yr Treasury Yields (the quintessential bond market benchmark). You may notice that rates have been moving higher recently, and that’s where our journey intersects with Friday’s jobs report. In short, the government’s official job tally of 194k (new jobs created) fell extremely short of the median forecast calling for 500k. At almost any other time in history, this would have sent
Highest Rates in Months Despite Weak Jobs Report
Highest Rates in Months Despite Weak Jobs Report

Deadline to request initial forbearance for HUD/FHA, USDA, or VA backed loans is extended until National Emergency ends

If you have a mortgage backed by HUD/FHA, USDA, or VA and are struggling to make payments due to the pandemic, you can request initial forbearance anytime during the COVID-19 National Emergency.

Deadline to request initial forbearance for HUD/FHA, USDA, or VA backed loans is extended until National Emergency ends
Deadline to request initial forbearance for HUD/FHA, USDA, or VA backed loans is extended until National Emergency ends

Volunteering to help people make the most of the tax refund. An opportunity to give back

Support volunteerism including community-based efforts to provide free tax preparation services to people with low incomes.

Volunteering to help people make the most of the tax refund. An opportunity to give back
Volunteering to help people make the most of the tax refund. An opportunity to give back

Comparing auto loans for borrowers with subprime credit scores

Our latest Data Point report takes an in-depth look at the different types of auto lenders, the interest rates they charge, and the correlations between the interest rates they charge and the rates of default among their subprime borrowers.

Comparing auto loans for borrowers with subprime credit scores
Comparing auto loans for borrowers with subprime credit scores

New rule ensures mortgage servicers provide options to potentially vulnerable borrowers exiting forbearance

Effective August 31, a new rule amending Regulation X aims to ensure eligible borrowers have a meaningful opportunity for loss mitigation after exiting mortgage forbearance programs.

New rule ensures mortgage servicers provide options to potentially vulnerable borrowers exiting forbearance
New rule ensures mortgage servicers provide options to potentially vulnerable borrowers exiting forbearance