Mortgage rates continued their frustrating and somewhat perplexing move higher today, thus bringing the average lender close to the highest levels since the end of May.  Rising rates are always frustrating for those the housing/mortgage markets and prospective borrowers, but an ebb and flow is a way of life.  In other words, it’s perfectly normal to see good and bad days for rates. Less normal is the occasional emergence of counterintuitive rate movement.  In other words, we are usually able to tie any given drop or surge in rates to one or more root causes that have had similar impacts in the past.   This time around, however, the economic data has been suggesting DOWNWARD pressure on rates over the past two days.  That’s notable for two reasons: economic data has been a reliable source of guidance and, more importantly, rates have experienced anything but downward pressure over the past two days! There are a few ways to account for the paradox, but at this point, most conversations include some speculation about the political impact on rates after last week’s presidential debate.  Connecting the dots from those conclusions to the market movement is a rather complex task and it relies on several assumptions that can’t be predicted with a high degree of certainty.  As such, we’ll dig deeper in the event the narrative continues causing problems for rates.  For now, just be aware that it may be a source of counterintuitive pressure, but one that should still be trumped by the major upcoming economic reports.

Do you know anyone in a “Situationship?” You know, a romantic or sexual relationship that is not considered to be formal or established? People in many varying degrees of relationships buy homes together, and using multiple incomes has become arguably more important in recent years. The math is not hard. The “average” person has a student loan, or a car loan, or credit card debt, or all three. Throw in interest rates around 7 percent, homeowner’s insurance of possibly thousands of dollars, utilities, property taxes, utilities, maintenance, mortgage insurance… you get the picture. Home affordability has deteriorated for several months in a row due to all of those reasons, not the least of which is mortgage rates, sidelining many prospective buyers from entering the housing market. Even the Fed noted it in its Beige Book, saying that “tight credit standards and high interest rates continued to constrain lending growth. Housing demand rose modestly, and single-family construction increased, though there were reports of rising rates impacting sales activity.” (Today’s podcast is found here and this week’s is sponsored by Bundle, the attorney-prepared legal documents company that is dedicated to the real estate, mortgage, and title industries. Fuel your operations and execution of documents from deeds to subordinations to assignments, and everything you need for any order, in one bundled price; receive 20 percent off using the code “Chrisman” at checkout. Hear an interview with Bundle’s Courtney and Frank Dec on attorney prepared documents germane to the mortgage industry.)

Friday’s trading session was marked by a surprisingly weak reaction to economic data that should have helped bonds.  In fact, it did at first, but things deteriorated as the day progressed.  We were left to consider some combination of politics and month/quarter-end trading motivations.  Now at the start of the new week/month/quarter, the same theme is in play.  Weak ISM data should have helped bonds, but we’re instead moving to the weakest levels in several weeks.  This time around, it’s harder to place all the blame on the calendar-based tradeflows.  In other words, bonds are getting nervous about a GOP sweep because whether it’s red or blue, a one party sweep has bad implications for Treasury supply.

The motion calls upon the judge to rule quickly on an Administrative Procedures Act claim involving a bank’s right to reverse mortgage collateral.

Investors laying claim to 19.3% of Voxtur Analytics common stock had attempted to add new nominees, but instead the company affirmed a downsized board.

Interested participants will have until July 26 to submit responses through the enterprise’s contractor platform.

The company has enough liquidity to support its short-term real estate finance lending business without the additional funds.

Trade groups were disappointed that the challenge posed by high home prices came up only twice as the current and former presidents faced off.

The plan from the Heritage Foundation, a group the first Trump administration was largely in line with, would shutter CFPB, break up HUD and raise FHA premiums.

Part of the proceeds will be used to pay down a credit facility, which is then being refinanced and the principal reduced.