Opening Doors Blog

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    • Jan 23
    • Posted by:

      Anita Lender, Blogger & Mortgage Expert

    What affects mortgage rates?

    Overall Economy. If the Gross Domestic Product of the overall economy improves, interest rates will go higher, if the economy declines, interest rates will usually go lower.

    Income Tax Rates. If the individual or corporate tax rates are reduced, this will increase the need for government borrowing, at least in the short run, putting upward pressure on interest rates.

    Infrastructure Spending. If the new administration increases infrastructure spending, this will increase government borrowing, and cause interest rates to increase.

    Inflation. If the inflation rate begins to increase, this will directly cause interest rates to increase.

    Federal Reserve MBS Purchases. The Fed was a very large buyer of MBS as part of the government’s economic stimulus efforts known as Quantitative Easing, which significantly lowered interest rates for mortgages. The Fed has reduced the amount of MBS they buy each month, only buying the amount equal to the payoffs on their existing $1.7 Trillion MBS portfolio. However, the Fed is still one of the largest buyers of MBS and their buying continues to have downward pressure on interest rates. If overall rates rise, and refinances drop off, the Fed will have less payoffs of their existing MBS portfolio, and therefore have less funds to use to buy new MBS, which would then remove the downward pressure on interest rates.

    Fed Funds Rate. If the Fed Funds rate increases in December, it will likely have little or no impact on overall rates since it only applies to overnight loans to Fed member banks, and an increase is already priced into the market’s expectations. However, a series of increases would signal the market that government policy makers view that the economy is improving, and overall market rates will soon begin to increase.
     

    • Jan 19
    • Posted by:

      Mary Ann McGarry, President & CEO

    Growing Gains, Not Pains

    Support is key to successful growth. As we continue to expand our reach throughout the nation, we think of innovative ways to maintain excellence. We’ve created a National Support Center (NSC). The NSC provides operations fulfillment for new teams, top producers and new branches. The goal is to provide our teams with enough support for a smooth transition. The NSC will also deliver overflow support to any region needing additional processing, underwriting or funding capacity. The NSC is staffed with seasoned employees excited to offer first-class operations support to our newest team members so that they, in turn, can offer excellence in customer experience.

    • Jan 9
    • Posted by:

      Mary Ann McGarry, President & CEO

    Resolutions & Regulations

    With a new year comes new resolutions and new regulations. We hope that regulators take a common sense approach to homeownership opportunities while ensuring consumer protection. Just as we’re ready for changing interest rates with a focus on purchase products, we’re ready for changing regulations. This year, we’re focusing on our compliance infrastructure to support the growing needs of our company. We are staffing up and we’re supporting our sales teams’ compliance needs. We continue to focus on effective risk management while supporting customers, our sales teams and our servicing division.

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The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.