{"id":6141,"date":"2023-03-14T06:15:00","date_gmt":"2023-03-14T06:15:00","guid":{"rendered":"https:\/\/imsfund.com\/?p=6141"},"modified":"2023-03-14T06:15:00","modified_gmt":"2023-03-14T06:15:00","slug":"mortgage-rates-tumble-in-the-wake-of-bank-failures","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2023\/03\/14\/mortgage-rates-tumble-in-the-wake-of-bank-failures\/","title":{"rendered":"Mortgage rates tumble in the wake of bank failures"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107087575\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>A residential neighborhood in Austin, Texas, on Sunday, May 22, 2022.<\/p>\n<p>Jordan Vonderhaar | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The average rate on the popular 30-year fixed mortgage dropped to 6.57% on Monday, according to <a href=\"https:\/\/www.mortgagenewsdaily.com\/mortgage-rates\" target=\"_blank\" rel=\"noopener\">Mortgage News Daily<\/a>. That&#8217;s down from a rate of 6.76% on Friday and a recent high of 7.05% last Wednesday.<\/p>\n<p>Mortgage rates loosely follow the yield on the <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\"><a href=\"https:\/\/www.cnbc.com\/quotes\/US10Y\/\">10-year Treasury<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, which fell to a one-month low in response to the failures of <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\"><a href=\"https:\/\/www.cnbc.com\/quotes\/SIVB\/\">Silicon Valley Bank<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-4\"><a href=\"https:\/\/www.cnbc.com\/quotes\/SBNY\/\">Signature Bank<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and the ensuing ripple through the nation&#8217;s banking sector.<\/p>\n<p>In real terms, for a buyer looking at a $500,000 home with a 20% down payment on a 30-year fixed mortgage, the monthly payment this week is $128 less than it was just last week. It is still, however, higher than it was in January.<\/p>\n<p>So what does this mean for the spring housing market?<\/p>\n<p>In October, rates surged over 7%, and that started the real slowdown in home sales. But rates then started falling in December and were near 6% by the end of January. That caused a surprising 8% monthly jump in <a href=\"https:\/\/www.cnbc.com\/2023\/02\/27\/january-pending-home-sales.html\">pending home sales,<\/a> which is the National Association of Realtors&#8217; measure of signed contracts on existing homes. Sales of newly built homes, which the Census Bureau measures by signed contracts, also surged far higher than expected.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-107206969\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107206969\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000289461\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107206980-6ED3-FM-b-BLOCK-031023.jpg?v=1678488493&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"Why the housing market is in increasingly big trouble\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>While the numbers for February are not in yet, anecdotally, agents and builders have said sales took a big step back in February as rates shot higher. So if rates continue to drop now, buyers could return once again \u2014 but that&#8217;s a big &#8220;if.&#8221;<\/p>\n<p>&#8220;This mini banking crisis has to drive a change in consumer behavior in order to have a lasting positive impact on rates. It&#8217;s still all about inflation,&#8221; said Matthew Graham, chief operating officer at Mortgage News Daily.<\/p>\n<p>Markets now have to contend with the &#8220;inflationary impact of consumer fear,&#8221; he added, noting that Tuesday brings a fresh consumer price index report, a monthly measure of inflation in the economy.<\/p>\n<p>As recently as last week, Federal Reserve Chairman Jerome Powell <a href=\"https:\/\/www.cnbc.com\/2023\/03\/07\/fed-chair-powell-says-interest-rates-are-likely-to-be-higher-than-previously-anticipated.html\">told members of Congress<\/a> that the latest economic data has come in stronger than expected.<\/p>\n<p>&#8220;If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,&#8221; Powell said.<\/p>\n<p>While mortgage rates don&#8217;t follow the federal funds rate exactly, they are heavily influenced by both the Fed&#8217;s monetary policy and its thinking on the future of inflation.<\/p>\n<\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2023\/03\/13\/mortgage-rates-tumble-in-wake-of-bank-failures.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A residential neighborhood in Austin, Texas, on Sunday, May 22, 2022. Jordan Vonderhaar | Bloomberg | Getty Images The average rate on the popular 30-year fixed mortgage dropped to 6.57% on Monday, according to Mortgage News Daily. That&#8217;s down from a rate of 6.76% on Friday and a recent high of 7.05% last Wednesday. Mortgage [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":6142,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107087575-1657644523853-gettyimages-1241033508-US_HOUSING_MARKET.jpeg?v=1678725810&w=1920&h=1080","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-6141","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/6141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=6141"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/6141\/revisions"}],"predecessor-version":[{"id":6143,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/6141\/revisions\/6143"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/6142"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=6141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=6141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=6141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}