Portland Mortgage Market Update — April 19, 2024

It was another rocky week for mortgage rates. The worsening from last week continued at the beginning of the week, and we saw a brief turnaround on Tuesday and Wednesday but it did not last long. Rates worsened again yesterday after NY Fed President John Williams spoke at a conference in Washington where he said another rate hike isn't his best case, but also noted "if the data are telling us that we would need higher interest rates to achieve our goals, then we would obviously want to do that" Bonds immediately faltered and rates increased as a result. Currently rates are nearing the mid-7's but hinting at improving

The Fed is nothing if not consistent right now. What Williams said isn't news- basically he was reinforcing the notion that the Fed will continually react to the data presented. Powell has been saying this for years, and this morning Chicago Fed President Austan Goolsbee said "Right now, it makes sense to wait and get more clarity before moving (rates)". This sentiment seems to have tempered rate movement a bit but this is the last we will hear from any Fed members until they meet at the end of the month. In other Fed-speak news, Fed Chair Powell also spoke earlier this week and indicated that the labor market is something they have an eye on and if unemployment increases they may look to lower rates. If you have been following along on these weekly market updates, this is exactly what I said needed to happen last week. So keep an eye out for any unemployment numbers starting with a 4% range and expect rates to improve following that

If you have borrowers upset with high rates, maybe look to Jumbo? That's right, we just signed up with a new Jumbo lender that is offering amazing pricing. I have a client buying a second home at the coast, and their Jumbo 30 yr fixed is about .25% lower than a primary residence purchase if it were to go conventional. So if you have anyone needing a loan north of $766K, you may be saving them THOUSANDS by having them give me a call.