Mortgage Rates Peaked?Mortgage rates are looking as if they are about to get another drop, on dally chart.
Daily not seen here. Please see profile for more information.
The monthly chart looks like a Head & Shoulder pattern. Interesting. Could we be seeing a huge drop in #interestrates soon?
Must keep an👀on this!
Mortgages
Bullish potential detected for HLIFollowing a few stocks in the ASX 300 of particular interest, HLI represents a potential bullish opportunity should momentum continue and newer highs be made past the current position. I'll cover this more in the upcoming weekly video, however as can be seen in the chart, the stock price has respected prior support of $3.47 and thus far intraday is also achieving good support from the $3.62 level, aligning with technical indicators of RSI and DMI. Much talk has been devoted to increased stress amongst mortgage borrowers in Australia in the media today, which adds further impetus to this potential trade.
U.S New Mortgage Applications Spike in Jan (they always do thou)Hi Guys,
Just a quick observation that the current spike in U.S. Mortgage Applications is positive but you can see that it is a fairly consistent trend over the past four years and should probably be taken with a pinch of salt until we see how subsequent months perform.
PUKA
Mortgage Rates have fallen & at major supportGood Morning!
It certainly makes sense for #mortgagerates to follow the bond counterparts & go lower
The monthly chart shows the RSI weakening as it chugged higher.
LONG term, the 3rd chart, we see that rates overcame a STRONG RESISTANCE area & long downtrend, white line. We will soon see if it'll hold that new support, white line.
#RealEstate #InterestRate
Never disregard those weekly & monthly closeSTHOSE LONG TERM TRENDS ARE IMPORTANT.
Remember how the 10 & 30 Yr #yield BROKE daily trends?
Well, they are both still in play, for TVC:TNX it is in better shape.
Let's see how they close.
30 Yr struggling a bit more to recover that close under the trend.
#mortgage rates have also fallen decently.
US Housing flashing a warning Lower Low in price First time since the doldrums in 2011
The cost of a 30 year mortgage is astronomical
Mortgage demand has frozen ...
Refinancing has also fallen off a cliff
I'm looking for sellers to start capitulating soon ... (as in within the next few quarters)
As we start to see the consumer at breaking point.
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Citigroup looks undervalued, but too risky to enter hereI did a deep valuation analysis on Citigroup today, digging into their earnings reports for the last three years as well as analyst estimates for the next 4 quarters. Here are my conclusions.
In forward P/S terms, Citigroup is nearly the cheapest it has been in the last three years. However, in forward P/E terms, it's nearly the most expensive it has been in the last three years. The valuation in P/S terms may be more important, because analysts expect the earnings numbers to climb steeply back up to meet the sales numbers within a few years. (Roughly 23% earnings growth rate expected in the next 4 quarters, and nearly 4% growth rate for sales.)
However, there are risks. Analysts are predicting a steep drop-off in sales next quarter due to the pandemic's impact on consumer credit, which is sharply down. Then they expect sales to recover from there. However, an alternative scenario is that the pandemic is prolonged and we don't get a vaccine this fall, in which case credit might continue to deteriorate and Citigroup's sales might fall off even more steeply in Q4 than in Q3.
I'm also worried about the outlook for the mortgage market. Current housing prices are artificially high, but there's a reckoning coming for residential real estate whenever Congress allows mortgage forbearance to expire. (Expiry is scheduled for August 31, but there's talk of extending it to next year.) If forbearance is extended, then renters and borrowers may not pay, which would hurt bank earnings. If forbearance is allowed to expire, then housing prices will fall and mortgage sales numbers will fall with them. Banks would seem to be in trouble either way, and I'm not certain analysts have accounted for this.
Thus, I will not be entering Citigroup here. I expect the narrative around banks to remain negative for the next quarter as bankruptcy and default rates continue to rise and credit continues to deteriorate. There's a good chance we will retest the bottom near $36/share sometime in the coming quarter; if so then I will revisit the numbers on Citigroup and consider an entry there.
(P.S. It's also worth pointing out that under normal market conditions, Citi's sales and earnings appear to grow linearly in dollar terms, which means that growth decelerates over time in percentage terms. In other words, Citigroup is not a compounder. That's reason enough to only trade this stock, not buy-and-hold for the long term.)
Long MFA Financial here as Weekly MACD is about to crossThis one is too easy...not a ton of downside risk as chart loves support here. I would say a 10%-15% stop loss is fine as you wait for this to break out.
Short volume will also be covering a long with some better economic forcasts in the days to come. REITS will be GREAT again.
I'm actually surprised the sideways nature on this...should curl up here to at least test our first resistance zone of about $2.50 - if it breaks that then we will see you over $3.60 in the near term.
Prepare for financial crisisThe biological crisis has stabilized, but the financial crisis is just beginning. True, the Fed has been injecting huge amounts of money into the financial system via repo and treasury and mortgage bond buying. In just a few weeks we're doing more QE than we did over 8 months back in 2008. That should help prevent outright bank failures, but there's still going to be a lot of pain as mortgages and corporate debt start to default.
The canary in the coal mine for a mortgage default crisis is unemployment, and this week we're likely to see initial jobless claims jump from 280,000 last week to some number in the millions. Reports indicate that New York's unemployment office is receiving 200,000-500,000 new claims per day, and California's jumped from 2,000 to 80,000 overnight. Both offices are overwhelmed and their employees are working huge amounts of overtime to keep up with all the new claims.
Bad mortgages aren't as big a risk to the economy as they were in 2008, but they're still a pretty big risk. The Trump administration has been lowering lending standards for several years, and the share of mortgages considered "high risk" has been rising rapidly. There's going to be pain in the banking sector. I will enter FAZ ahead of Thursday's ICSA report this week.
Interest rates are about to break LOWERwww.RefiwithJustin.com if you own a home in Colorado or Texas!
Monthly view of the 10 year yield here.
Yield touched current levels in 2012 in anticipation of QE3.
Again in June 2016 over Brexit.
3rd time in August/September of trade war.
4th - Coronavirus? I would bet this is this what initiates the break down.
10 yr around 1% or lower coming soon?
Mortgage Rates : Refinancing Now is Easy Money. Especially if you just closed on a mortgage in October or November of 2018, you should call a Mortgage Lender now to compare rates. You may be shocked to learn how much you could save in interest over the life of the loan. For example, 0.5% lower rate x $300K loan balance is approximately $1,500 annually. Think about how long you may have your mortgage and the impact becomes powerfully clear.
You would be wise to contact a low closing cost lender when comparing rates to find out how much else you can save in closing costs. Best of all, find out which lender has the lowest costs and the lowest rates - that is the lender that will offer the most savings - and they do exist. This may be the easiest money you will ever make with just a few phone calls. In Allen County Indiana and surrounding IN counties, call me for a quote at 260-442-6877. NMLS#1181098
The chart shows a 38% Fibonacci retracement from the October and November recent highs as well as a break of the uptrend line from the July 2016 lows. While it is possible that the rates may go even lower, it may not happen for a while if at all. So, the safe move IMO is to refinance now to lock in the lower cost of money, then keep an eye on it so that you can do it again if it happens to go lower. Low closing costs make this strategy a no-brainer.