Here are my interest rate observations from this morning.

Today’s Par Rate* Charge (1st rate below 1% Charge) Yesterday’s Par Rate*
6.50% | 6.658% 0.779% 6.50% | 6.576%
*Rate Scenario Details: Purchase, 30 Year Fixed, Conventional, $500,000 Purchase, $400,000 Loan, 80% LTV, 41% DTI, Income=$7,500, Primary Residence, Single Family, 84045 Zip Code, FICO=780, Escrows=Yes, Fees Out, Expiration=30 days.
Daily Rate Sheet Compare Comparison Rate* Difference Today Yesterday
Higher 7.000% 0.373 .518 0.145
Higher MBS Price Current Day 8:18 AM MST MBS Price-8/32 10 Year Treasury3.73%
Higher MBS Price Yesterday Close MBS Price-7/32 10 Year Treasury3.68%
Rate Influence Report Name Actual Expected Prior
Higher Consumer Confidence 100.2 100.0 102.5
Legend: Yellow highlight = Higher Interest Rates. Green Highlight = Lower Interest Rates.

News To Prepare For.

The November CPI report will be released next Tuesday, just one day ahead of the FOMC’s rate decision.  Right now, the market has fully priced in a +50 bp hike for December.

Comment:

If the CPI is higher than anticipated, then expect the Federal Reserve to react. And higher or lower rates will follow.

Mortgage group asks regulators to stop FICO’s price hikes of up to 400%

(HousingWire by James Kleimann). Credit reports are going to get a lot pricier in 2023 – by as much as 400%. Some mortgage trade groups say the FHFA and FHA should take action against FICO.

Last month, the FHFA approved VantageScore as another credit scoring system for mortgage originators, giving FICO its first actual competitor in decades. The regulator, however, said it would be a “multiyear” effort to get VantageScore 4.0 up and running.

Comment:

While I am highly suspicious about the timing of this price hike, I am equally opposed to our government doing price controls. Government should protect competition, and encourage competitive behavior among companies. But what government should never do is control consumer product prices. It has resulted in horrible and unintended consequences every time. Is this latest news simply a ploy by Vantage Score? It is very likely. Carefully note how Vantage Score is never mentioned in the price hike from FICO. Does Vantage Score just want to “hurry up” the process to become “up and running”? Sure.

Expansion-hungry Guild gobbles up Inlanta Mortgage

(HousingWire by Flávia Furlan Nunes and Connie Kim). Guild announced Thursday that it acquired Wisconsin-based lender Inlanta Mortgage to increase its purchase loans portfolio and its market penetration in the MidWest.

Comment:

The current strategy of many lenders is to not just survive – but to further their reach during times of distress. I applaud these efforts, so long as they have the wherewithal and staying power to weather out this storm.

The Gathering of Israel.

(Doctrine and Covenants 33: 6). “And Even so will I gather mine elect from the four quarters of the earth, even as many as will believe in me, and hearken unto my voice.”

Comment:

The gathering of Israel is the most important thing taking place on earth today. Nothing else compares in magnitude, nothing else compares in importance, nothing else compares in majesty. And if you choose to, if you want to, you can be a big part of it. You can be a big part of something big, something grand, something majestic!

When we speak of the gathering, we are simply saying this fundamental truth: every one of our Heavenly Father’s children, on both sides of the veil, deserves to hear the message of the restored gospel of Jesus Christ. They decide for themselves if they want to know more.

(Daily Joy, Russell M. Nelson, p. 367).