CHM Blog

Daily Market Analysis May 2, 2022

May 2nd, 2022 12:46 PM by Richard Sardella MLO.100007700/NMLS 233568


Rates At a Glance
Mortgage Rates
Currently Trending
7 Day Mortgage
Rate Forecast
This Week's
Potential Volatility

Higher

Higher

High
(by Sigma Research)
Real Estate Report

Realtors see demand growing for "green" houses:

The number of Realtors® involved with buying or selling a property with green features has significantly increased in the past year, according to a recent study from the National Association of Realtors®. The 2022 REALTORS® and Sustainability Report surveyed NAR members nationwide regarding sustainability issues currently facing the real estate industry.

Half of agents and brokers surveyed said they helped a client buy or sell a property with green features during the past 12 months, a notable jump compared to 32% in 2021.

Nearly two out of three respondents – 63% – said that energy efficiency promotion in listings was very or somewhat valuable. Over half of agents and brokers – 51% – found that their clients were somewhat or very interested in sustainability. And 35% reported that their multiple listing service features green data fields. Among those with green data fields in their MLS, the top ways they were used were to promote green features (35%), energy information (24%) and green certifications (13%).

"Sustainability continues to play a growing role in consumers' purchasing decisions, and this is becoming even more prevalent in the real estate market," said NAR President Leslie Rouda Smith, a Realtor® from Plano, Texas, and a broker associate at Dave Perry-Miller Real Estate in Dallas. "With the residential property market, in particular, home buyers have expressed increased interest in eco-friendly factors like solar panels and energy efficiency."

Roughly three out of four Realtors® – 77% – said that properties with rooftop solar panels were available in their market. These numbers were highest in the West (89%) and Northeast (86%). Thirty-six percent said that homes with solar panels increased the perceived property value, compared to 30% that said they had no effect.

The report also noted rising anxiety among Realtors® about the effect of climate change and extreme weather events on their businesses. More than one out of three respondents – 34% – said they were very or somewhat concerned about the impact of extreme weather events on the housing market. The median existing-home sales price rose to $375,300, up 15% from one year ago according to the National Association of Realtors®.

This Week's Mortgage Rate Summary

How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market.  This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events.  When MBS pricing goes up, mortgage rates or pricing generally goes down.  When they fall, mortgage pricing goes up.  Tracking these securities real-time is critical.  For more information about the rate market, contact me directly.  I’m among few mortgage professionals who have access to live trading screens during market hours.

Rates Currently Trending: Higher

Mortgage rates are moving higher today. The MBS market worsened by -6 bps last week. This was not enough to increase mortgage rates or fees. The market experienced high volatility last week.

This Week's Rate Forecast: Higher

Three Things: These are the three areas that have the greatest ability to impact rates this week: 1) The Fed, 2) Jobs and 3) Central Banks.

1) The Fed: On Wednesday we will get the FOMCs Interest Rate Decision and Policy Statement. The markets widely expect a rate hike of 50BPS but it very well could be 25 or 75 basis points as well. Of more importance is their forward guidance on their future hikes and if there is any actual action taken in regards to their balance sheet reduction process that is referred to as QT( Quantitative Tightening). Will they officially begin it? Or will they continue to state that it will start "soon"?

2) Jobs: We get a lot of job and wage related data this week culminating in Friday's Jobs report. The bond market will be very sensitive to the NFP, Unemployment Rate and Wages.

3) Central Banks: Our Federal Reserve is not the only game in town as we expect interest rate hikes out of the Bank of England and the Reserve Bank of Australia.

This Week's Potential Volatility: High

This morning markets are under pressure. Volatility has started high as traders try and predict this jam packed week.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.

About Richard Sardella

Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.

About This Report And Disclosure Information

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.

Posted by Richard Sardella MLO.100007700/NMLS 233568 on May 2nd, 2022 12:46 PM

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