Mortgage Rates (1 Viewer)

[Chadstroma]

Trade deal announced with China. Our tariffs down to 30% and theirs 10%. It seems to be a win. My question is do we get the final agreement out of the 90 day window that will go well beyound tarriffs and adress the Chinese unfair trade practices... I am betting it will and if it does, it is a huge win for the US.

10 year yield up in response.

Which is a bit weird as you would think this would be deflationary.

If you thought the tariffs would slow down the economy, which I think was the prevailing opinion, that would have been deflationary.

Most thought the tariffs would increase the cost of goods which is inflationary.

As with most things about economics, you can over simplify things in many different ways and usually it is more complicated because things happen very rarely with one cause and one effect. I think my post was oversimplified and also misleading (saying yield up in response). Often times when stock market tanks, yields lower as bonds are bought. When stock market rises, bonds have to pay more to attract buyers. I think that is the main driver here. This seems to be due to the agreement and some other positive economic data. So, more like the market increased in response and then in response to that the yield increased. Also investors looking ahead to the Fed meeting. I am sure there were other factors.

 

[Chadstroma]

My post on my socials about Vantagescore 4.0 being approved for mortgage lending...

Big News in Mortgages!
The FHFA has approved VantageScore 4.0 for mortgage lending—and this could change the game for millions of potential homebuyers.

So what does that mean for you?

MORE People Could Qualify
VantageScore 4.0 looks at your credit behavior over time (trended data) and even considers things like rent, utilities, and cell phone payments. That means:

Better chances for those with limited credit history and potentially better route for those struggling with the current mortgage scores.

A "More" Credit System
This is a big shift away from only using older FICO models. VantageScore adds competition, modernizes scoring, and may better reflect your financial reality.

Less Weight on Medical Debt & Collections
Finally, a model that doesn’t let a single bill drag down your entire score.

BUT... it’s not without growing pains:
Lenders need time to adjust
We don’t yet know how this will affect interest rates
And yep, it may get confusing having another score in the mix

Rollout is Here
Approved for immediate use but lenders will need a minute to start using them

BOTTOM LINE:
If you’ve been locked out of homeownership by a traditional FICO score, this change might be your second chance.

Message me if you want to understand how this could impact your ability to qualify or improve your mortgage-readiness under the new rules or to simply plan towards how to best use this to make your home ownership dreams come true!

 

[Chadstroma]

Add some other thoughts later...