Written by Robert Talas, Owner of The Talas Report Blog
Hello, everyone! Robert Talas here, and I’m back with another Mid-Week Round Up, bringing you the latest updates from the real estate and market industry. Let’s dive right into the insightful articles that caught my eye this week.
1. Mortgage News Daily: Mortgage Rates on 11/22/2023
In today’s article, According to the Mortgage Bankers Associations seasonally adjusted index, mortgage demand increased by 3% last week from the previous week as interest rates continue to move lower. The average interest rate on the most popular u. S. Home loan fell last week to its lowest level in two months as treasury market yields, which act as a benchmark for mortgage rates, continued to move lower on the back of cooling inflation and a softening economy. The average rate on the standard 30-year fixed mortgage declined to 7.29% from 7.44% a week ago.
Key Takeaways:
- Mortgage demand is finally crawling out of the basement as interest rates continue to move lower.
- The average interest rate on the most popular u. S. Home loan fell last week to its lowest level in two months as treasury market yields, which act as a benchmark for mortgage rates, continued to move lower on the back of cooling inflation and a softening economy.
2. National Mortgage News: FHFA Finalizes Updates to Capital Framework
According to the article from National Mortgage news, the Federal Housing Finance Agency (FHFA) has finalized updates to the enterprise regulatory capital framework (ERCF). The ERCF is a regulatory capital framework that requires Fannie Mae and Freddie Mac to submit annual capital plans to the FHFA and provide prior notice for certain capital actions. The final rule amends the ERCF by refining the prescribed leverage buffer amount and risk-based capital treatment of retained credit risk transfer exposures for Fannie Mae and Freddie Mac. The amendments finalized by the FHFA reflect the feedback received last year and advance the FHFA’s mission of ensuring the enterprises are able to support the housing market throughout the economic cycle 1.
Key Takeaways:
- The FHFA has finalized updates to the enterprise regulatory capital framework (ERCF).
- The final rule amends the ERCF by refining the prescribed leverage buffer amount and risk-based capital treatment of retained credit risk transfer exposures for Fannie Mae and Freddie mac.
3. MarketWatch: Why Stocks Thanksgiving Week Performance Is Important to Watch
According to an article from Marketwatch, it is important to watch the stock markets performance during Thanksgiving week to see if the market could sustain its rally through the year-end 1. The article notes that while the trading week is shortened by the Thanksgiving holiday, it’s still important to monitor the stock markets performance 2. The S&P 500 index has gained on average 0.54% during thanksgiving week over the past 50 years, with 68% of the returns positive 13. The Wednesday before thanksgiving has been positive 78% of the time, averaging a gain of 0.30%, while the day after Thanksgiving has averaged a 0.22% return over the past 50 years and has been positive 66% of the time 13. The retail sector particularly stands out during this period, according to a J.P Morgan study, as strong retail numbers during this period could signal the start of a robust shopping season, potentially boosting stock prices.
Key Takeaways:
- It is important to watch the stock markets performance during Thanksgiving week to see if the market could sustain its rally through the year-end.
- The S&P 500 index has gained on average 0.54% during Thanksgiving week over the past 50 years, with 68% of the returns positive.
4. Fox Business: Mortgage Rates Plummet to Two-Month Low, Reigniting Housing Demand
Fox Business reports on a significant development in the real estate market, with mortgage rates hitting a two-month low. This drop is seen as a catalyst for renewed housing demand, presenting opportunities for both homebuyers and sellers.
Key Takeaways:
- The decline in mortgage rates is expected to stimulate housing demand, creating favorable conditions for individuals looking to enter the real estate market.
- For those considering a home purchase or sale, the current low mortgage rates present an opportune moment to explore options and make informed decisions.
References:
- Mortgage News Daily. (2023, November 22). Mortgage Rates on 11/22/2023. Link
- National Mortgage News. (2023). FHFA Finalizes Updates to Capital Framework. Link
- MarketWatch. (2023). Why Stocks Thanksgiving Week Performance Is Important to Watch. Link
- Fox Business. (2023). Mortgage Rates Plummet to Two-Month Low, Reigniting Housing Demand. Link
Wishing you all a wonderful Thanksgiving season filled with joy and gratitude!