Frank Nothaft Quotes (212 Quotes)

Declines in worker productivity coupled with accelerating labor costs increase the threat of inflation down the road. Inflationary pressure generated by these two factors pushes long-term mortgage rates upward, which is why we have seen rates rise these last two weeks.

The decline in mortgage rates was primarily due to a weak employment report for September, which suggested economic growth is still a bit subdued. As a result, we expect mortgage rates will continue to stay quite affordable over the next few months, benefiting future homebuyers,

Mortgage rates moved up for the second week in a row on concerns about a pick up in inflation showing up in raw materials,

Current economic indicators reflect a lackluster economy, and I think it's safe to say that financial markets will continue to experience volatility, at least until there is some resolution to the current situation in Iraq. Mortgage rates overall continue to be amazingly affordable, and that keeps the housing industry humming. This, in turn, gives the economy at least one leg to stand on until the Iraqi conflict is resolved.

Release of the May Federal Open Market Committee (FOMC) minutes the week reinforced the notion that inflation in the economy in the first three months of the year was contained and upward price pressure in the near-term seems unlikely,

Financial markets are feeling more confident that the Fed will not raise rates any time soon. Add to that the fact that recent economic data shows core inflation is less than the market expects, and we see mortgage rates drop once again.

Lower oil prices at least compared to the last several months have helped to alleviate some of the inflation fears that the market has been experiencing lately.

Additional economic indicators this week confirmed that June was a weak month for the nation as a whole. Consequently, the upward pressure on interest rates eased, allowing mortgage rates to return to earlier, lower levels.

Feeling more comfortable about the upcoming economic rebound, the financial markets relaxed a bit this week. With the market more settled this week, interest rates on fixed-rate mortgages eased this week to the lowest rate in five weeks.

In spite of the sluggishness in the economy, nearly 25 percent of all mortgages were refinanced in 2002, saving those homeowners an average 1,200 per year to spend or save as they see fit, ... And with interest rates as low as they currently are, refinancing will continue to be a viable option for some.

The housing industry remains fundamentally fit as we move into the spring buying season.

At this time last year, our forecast called for interest rates for 30-year fixed-rate mortgages to exceed six percent by this time this year,

However, the resiliency of the housing sector continues to amaze, ... 2005 will be another banner year for the housing industry.

This new millennium has proven to be very homeowner friendly. For instance, in the last four years we have set records in housing starts, housing sales, low mortgage rates, refinancing volumes and total mortgage originations,

Employment figures released recently, along with the information garnered in the Beige Book, support the market's notion that the economy is beginning to slow, reducing the immediate need for the Fed to take action when it meets later this month. Thus, there is no upward pressure on interest rates,

There was little activity during this holiday week to move mortgage rates one way or another,

Although mortgage rates will rise this year, we expect the 2005 annual average will be below levels recorded just three years ago.

Although mortgage rates have risen for the second week running, the long-term figures are still only about 50 basis points higher than they were at the start of the year. This may have slowed the refinance market a little, but refinancing continues to make up about half of all applications for mortgages, according to the Mortgage Bankers Association.

Bond yields have been creeping up on an almost daily basis since the beginning of October, pushing mortgage rates up as they go, ... Inflation remains low, however, and we expect that to continue into 2004 and beyond. And as long as it does, we won't see mortgage rates rising very dramatically.

The threat of higher inflation, as we all know, invariably leads to higher mortgage rates.

Continued low mortgage rates open the housing market to a broader segment of the population and contribute to the on-going vitality in home sales. And, since mortgage rates are expected to remain low until the economy picks up more steam, the housing sector should stay active and healthy for some time to come.

Next week the policy committee of the Federal Reserve will meet and our expectation is that it will raise short-term rates by a quarter of a percent. However, we also don't see this increase as having a significant impact on long-term mortgage rates.

Federal Reserve Board Chairman Alan Greenspan told Congress that he's optimistic that the economy will take off in the second half of this year. In response, bond yields rose dramatically, taking mortgage rates up with them.

November's employment report was a letdown, and it brought mild disappointment to the financial markets, causing mortgage rates to recede. The lack of any job growth stalls the economic recovery and, in the long run, dampens the potential growth of the ho

The strength in employment growth and an unexpected jump in consumer credit in January helped push mortgage rates a little higher this week. While long-term interest rates are at the highest level since May of 1998, they are still very affordable, particularly when compared to the 1970s and 1980s.

Housing start figures in January came in at the highest level in over three decades, due in part to the combination of low rates and a warmer climate across the country.

Housing is poised for another exceptional year. Housing starts rebounded in March owing to record low rates and more seasonal weather, and we expect starts will remain at current levels for at least the next few months.

The release of the August jobs report showed a continuation of the jobless recovery...this, of course, caused interest rates, including mortgage rates, to ease back from the highest level we had seen in a year.

There is concern that the continued high level of energy costs may lead to inflation in other sectors of the economy. Fear of inflation leads to higher mortgage rates, like the ones we see this week.

Currently, for new mortgages, all ARM products make up about one-third of the market.

August employment figures are due out tomorrow and those numbers will shed more light on the future financial strength or weakness of families. And that strength or weakness is a large part of what will drive the pace of the nation's economic growth.

Consumer confidence slipped in February to the lowest reading in three months, but manufacturing activity appears to have strengthened last month. On net, the latest economic news had little effect on mortgage rates this week. Over the past five weeks, mortgage rates have remained within a narrow range of 0.1 percentage points around this week's averages. Our forecast calls for rates on 30-year fixed-rate mortgages to increase about one-quarter of a percentage point by the end of the year.

The current uncertainty of corporate governance caused huge transfers of money into more stable and safer assets. Large money managers shifted their investments into bonds, thereby lowering their yields and allowing mortgage rates to follow.

Over the past five weeks, mortgage rates have remained within a narrow range of 0.1 percentage point around this week's averages.

With the conflict in Iraq seemingly under control, the financial markets have shifted focus back onto the economy. Freddie Mac's most recent economic forecast recognizes that the first half of the year may be slower than originally thought, but that the second half will begin to pick up.

Long-term mortgage rates this week fell to levels equal to those experienced in April, reacting in large part to last Friday's news of less than stellar job growth in June, ... This is good news for those who are still house hunting, as lower rates mean more affordable housing.

The fixed-rate mortgage rates are lower this week than last as fears of inflation subsided somewhat. But rates are still higher than they were in April when we saw a slowdown in housing sales.

We expect that near-term growth will now be a bit weaker than had been anticipated, due in very large part to the disruption in economic activity brought on by Katrina last week.

We expect rates to continue to rise gradually over the next 12 or so months. Because the housing sector is so sensitive to fluctuations in interest rates, this will have the effect of returning the housing sector to a more normal pace of activity, by historical standards.

However, a broader measure of inflation, the Consumer Price Index (CPI), posted a less-than-expected rise in inflation, causing bond yields to fall. This means that next week's survey results may retreat to prior levels of a week or two ago.

Mortgage interest rates were up this week on news that February employment figures suggested an economic upturn. That news, however, puts a bit of upward pressure on long-term mortgage rates.

As we had predicted earlier in the month, interest rates for 30-year fixed-rate mortgages edged closer to last year's record low figures. For the year as a whole, we expect long-term rates may be even lower annually than they were in 2003.

Long-term mortgage rates, which dropped again for the fifth consecutive week, remain low enough to keep refinancing activity a viable option for many. Not only can homeowners take some equity out of their home, many may also be able to lower their mortgage rate at the same time.

For the typical family, home equity accounts for the bulk of their wealth.

When taken as a whole, this week's economic data point towards both low mortgage rates and a growing economy, both of which are good news for current homeowners looking to refinance and for families hoping to become homeowners.

Recent economic indicators show a lackluster economic climate. And that led to the surprise 50-basis-point rate cut by the Fed yesterday.

Short-term rates, though, may be another matter, since the Federal Reserve is expected to continue raising its target for the federal funds rate at least a few more times this year.

What will happen in Las Vegas It's hard to say. The entertainment industry has been very strong and you've got large immigration and employment growth, well above the national average. So you have an increase in house prices, but it's related to the influx of new residents and job growth. But certainly that's a market that you should use some caution in the coming years.

There seems to be some concern in the marketplace that the economic recovery will be slower than expected , lessening the fear of inflation. As a matter of fact, personal income and consumer spending growth for the first quarter were moderate and showed inflation to be well constrained.

Currently the market is relatively stable while it looks to see if there are any remaining weak spots in the economy and, if so, what those spots might be. But, at the moment, there seems to be nothing that would indicate that anything that might seriously disrupt the market and cause mortgage rates to rise appreciably.