A pair of riding boots has been sitting in the foyer between the garage and the kitchen for almost the entire week. To the point where you can’t really open the door all the way. Apparently, this does not bother anyone else in the family, as they are still there. I will not break. I will not move them. I am curious how long they stay there before someone decides they should be picked up.
And lastly, copious amounts of protein are being consumed by the boy. I probably cooked steak, for breakfast or lunch, five or six times this week. I like steak, just not before dinner.
Product Note*
Quick product note before chatting about the market.
Adjustable-rate mortgage (ARM) pricing came back to us a bit this week, so we have added those programs back to our rate sheet. As you may know, adjustable-rate mortgage programs cannot be sold to Fannie Mae or Freddie Mac, so this part of the market really revolves around private funding and securitization.
When there is an appetite for a bucket of five-year or seven-year loans, the market opens and rates are priced based on demand. Once that bucket is filled, pricing adjusts. The positive for a buyer is that while a bucket is being filled, there can be notable rate benefits, particularly if the expected window for owning the home is relatively short.
Market Notes
It was a decent week in the market, with rates for most programs moving fractionally lower and landing near some of the lows we have seen this year.
Two very important economic reports were released this week. The non-farm payroll report was rate friendly, as the unemployment rate reached its highest level since 2021. November inflation data was also rate friendly, perhaps almost too friendly. The drop in consumer prices was notable compared to the prior release, which is positive. However, the market viewed the decline with some skepticism. It will likely take another positive month or two before there is broader confidence that inflation is moving sustainably toward the 2 percent target.
Looking Ahead**
Enjoy plenty of football and a great holiday week. We are available to answer any mortgage related questions or needs, so please do not hesitate to give us a call. Best wishes.
-Steve-
*All loans, including adjustable-rate mortgages, are subject to credit approval and program guidelines. Rates, terms, and availability are subject to change without notice. Eligibility requirements vary by program and location.
**This communication is for informational purposes only and is not a commitment to lend.