Mortgage Rates Heading Higher

Mortgage Rates Heading Higher With Dow Soaring

Gustan Cho Associates are mortgage brokers licensed in 48 states

This BLOG On Are Mortgage Rates Heading Higher With Dow Soaring Was PUBLISHED On January 4th, 2019

The economy is hot. So is the housing markets. Both HUD and FHFA has increased loan limits for three years in a row due to rising housing prices. Mortgage Rates Heading Higher with Dow Soaring has not put a dent on the housing market. 

  • Unemployment numbers are at historic lows
  • After President Donald J. Trump took over as the President of the United States, the Great Recession is finally over
  • The Dow Jones Industrial Average has hit record highs
  • Americans are enjoying their net worth being higher due to the rising stock market and increases in their 401k’s
  • Americans are enjoying the economy
  • More and more renters are becoming homeowners
  • The mortgage industry has added loan programs such as non-qm loans and bank statement loans for self-employed borrowers
  • However, with great news means higher home prices
  • Good economy and higher stock market means mortgage rates heading higher

In this article, we will cover and discuss Mortgage Rates Heading Higher With Dow Soaring.

Mortgage Rates Heading Higher With Dow Soaring Not Affecting Home Prices

Many home buyers may not pay attention to the Dow Jones Industrial Averages and the stock market, but there is an inverse relation between mortgage bonds and the securities markets.

  • With rising stock prices, mortgage bonds go the other way and go down in value
  • This is because institutional investors are after higher yielding investments
  • This drives mortgage rates heading higher with the soaring stock market

Dow Jones Industrial Average Today

The stock market is at a historic high due to the great economic number.

  • Trump Administration corporate tax cuts and incentives have created major profitability to corporations yielding record earnings
  • Dow Jones is over 25,000
  • Never in history has the Dow been trading as high as it is trading today
  • Mortgage Rates has been the highest since the housing bubble
  • However, rising rates have not put a dent on housing demand
  • Both FHFA and HUD has increased conforming and FHA Loan Limits for three years in a row

Will Mortgage Rates Be Dropping In Near Future

Many homeowners are on standby for mortgage rates to drop so they can refinance their home loans.

  • A large percentage of homeowners who need to refinance their home loans are on pins and needles

They need to refinance their home loans for the following reasons:

  • Cash-Out Refinance
  • Refinance out their FHA Loans to Conventional Loans to get rid of mortgage insurance
  • Refinance their non-occupant co-borrowers out of their home loans
  • Refinance their ex-spouse out of their home loans due to their divorce

Nobody has an answer if mortgage rates will be dropping. One thing for sure is that mortgage rates will probably never go back to the 3% level like it was back in 2012-2013.

Qualifying For Mortgage With Direct Lender With No Overlays

Homebuyers who need to qualify for a mortgage with a five-star national lender with no overlays on government and conforming loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at We are also experts in non-qm loans and bank statement loans for self employed borrowers. The Gustan Cho Team is available 7 days a week, evenings, weekends, and holidays.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *