Homebuyer.com Hosts: Matt Graham of Mortgage News Daily [VIDEO]

Video Transcript

welcome today we are here with Matt Graham who is the founder and the chief mortgage expert at mortgage newws daily.com Matt thank you for being here hey thanks for having me Dan good to be here I so let’s get right into it tell tell us all what is happening in mortgage markets today what are we looking at today uh well I mean today is is kind of a specific time frame uh rates are just a little bit higher today than they were yesterday but in general rates have crept back up so far this year and are back just above 7% for a top tier 30-year fix type scenario so for if we look even from April 1 today April 2 um if we look at just the first two days of the month there’s been a little bit more interesting activity than what we had seen in March what’s going on what are first-time buyers need to know about what’s been happening this week so far so uh yeah what buyers need to know this week is that and every week is that we have economic data that moves more rates and if it’s not economic data it’s a Federal Reserve member commenting on it whereas last week was pretty flat this week is moving thanks to an abundance of economic data right out of the gate on Monday we had a report that started to push rates up fairly rapidly now today the economic data is a little bit friendlier and things are leveling off a little bit but there will be more reports oh sorry there will be more reports you’re getting right into it it’s exactly I was going to ask what’s that next big thing that’s coming yeah so uh this week is characteristically one of the busiest of the month uh when it comes to these reports that shake things up for rates and that always has to do with Friday’s big jobs report it’s technically the employment situation if you’re Googling it online but uh it’s the big jobs report and that’s one of two reports that has more power than anything else to cause volatility for interest rates and so why in particular this month what is it about the employment situation report the jobs report what what should we be looking for um H how’s Wall Street going to react what is what does the FED want to see um what’s your take on that right so the FED wants to strike a balance between job growth and stable inflation if they make money too abundant and too easy if they make rates too low they feel that it will create too many jobs and too much inflation so they’re trying to strike balance they would like to see the job market continue to grow but inflation continue to come down so that growth would look like something 200,000 jobs month or under and it’s important to note while the news uh focuses a lot on the unemployment rate the market focuses more on the actual month-over-month job count known as non-farm payrolls and that is expected to come in around 200,000 this month if it’s there or lower that’s probably a pretty good thing for rates but there are other aspects of the report that could also sort of nudge that in one direction or the other as far as the Market’s reaction so as we look back at uh charts right so I know you’re a big chart Watcher you’re you’re a technical uh analysis guy and uh you give excellent analysis of what’s been happening in markets and what it might mean for what’s coming next what are you seeing in patterns now um how you know how do the charts look to you today yeah so it’s interesting over the years I’m less focused on technical analysis especially right now because it’s so much uh a market that’s driven by fundamentals and economic reports uh but one interesting thing that we’re seeing in charts is just a general long-term sort of what you would referred to as a top uh in interest rates we just don’t see many chart patterns in the past where rates have risen as much as they have and have made the sort of um I don’t know deceleration of their upward movement in the same way that hasn’t been followed by at least a little bit of of recovery for rates so you’re saying that rates have gone up and just held there and that’s atypical historically uh yeah well it’s it’s typical for situations where rates then come down I should say yeah so yeah so with all the data that you’re looking at and and all the numbers that you’re constantly uh running through are you seeing any interesting patterns emerge is there anything like what what could our uh audience here what’s something that you can give them to help them feel extra smart when they’re out with their friends or they’re talking to the realtor whever they are in they’re Al buying a house what are you seeing with something great for them to you know to to hang on to yeah so one data or one talking point that I like right now and it’s not anything to be a cheerleader but it’s the reality is that you know people are worried about uh the housing market and getting into it when affordability is so low because what if something like 20078 happens again and it ends up being a bad decision um and while nobody can predict the future what we can know is that the the backdrop is very different this time around uh versus 2007 inventory is just significantly lower and risk-taking behavior at uh in the market in the mortgage Market level is completely different so the only thing a buyer really needs to worry about right now is can I afford the payment and if you can afford the payment there’s much less reason to be concerned that you’re jumping into a housing market that is toxic anyway if anything we’re seeing surprisingly healthy demand for mortgages and and housing right now and the best part of it all is that it’s highly likely again nobody can predict the future but it’s highly likely that at some point in the next three four five years you’ll have an opportunity to refine to a lower rate that’s awesome again Matt thanks for joining us uh you can get all of Matt’s commentary at mortgage news.com I do it multiple times daily it’s excellent thanks Matt for being here thanks for having me terrific Co you nailed it that was awesome quick hits are good man I like I like that um I like that I don’t know that format people make videos that are tooo long