The Martini Factor is curated by Certified Mortgage Advisor and Raleigh Mortgage Broker Kevin Martini to provide a glimpse of what is likely to impact Raleigh mortgage rates this week.  This week it is all about the Fed, for the people in the back let me say it again, this week it is ALL ABOUT THE FED!

WHAT’S GOING ON IN THE ECONOMY THIS WEEK AND WHY DOES IT MATTER?

Mortgage bond prices opened sharply lower on Monday, and bond yields have spiked across the board as the market places bets on the Federal Reserve’s interest rate decision, scheduled for this Wednesday. Investors are betting that a 0.75% rate hike will take place, although many, to include the Martini Mortgage Group are betting that the Fed may hike rates by a full 1% in response to recent data showing that inflation has not yet peaked.

It is my opinion, if the Fed increases rate by 0.75% on Wednesday, mortgage rates may actually improve. Now if the Fed increases rates by 1%, mortgage rates may deteriorate.

Raleigh Mortgage Lender Kevin Martini

Most investors are betting the Fed will hike short-term rates by that amount, although some are betting on a full 1% rate hike.

IMPORTANT

Trying to time the market in this environment is a bit like trying to catch a falling knife: the odds are such that you’ll likely get cut deeply however you play it. Be prepared for lots of volatility in the market this week. For questions and live up-to-the-minute updates, contact the Martini Mortgage Group buy calling (919) 238-4934.

Oh by the way…

It is never too early to start to explore your homeownership options and you are not too late either.  The first part of the homeownership journey is the loan and then after you have the certainty and being armed with price and cost clarity, the second step is to go find your home. The Martini Mortgage Group offers trusted advice with a frictionless digital mortgage process that provides certainty.  To contact Mortgage Strategist with the Martini Mortgage Group simply call: (919) 238-4934.

Things to Consider when Buying a Home

If you are a first-time homebuyer or a repeat homebuyer, there are many things to consider when buying a home.  Certified Mortgage Advisor Kevin Martini and Senior Mortgage Strategist Logan Martini curated the Fall 2022 Martini Buyer Guide to simply explain the current real estate and mortgage markets plus vital information about buying a home and the process of getting a mortgage.  The Fall 2022 edition of the Martini Buyer Guide has a dozen of informative articles that talk about things one needs to know about the current real estate and mortgage markets. 

The Martini Factor is curated by Certified Mortgage Advisor and Raleigh Mortgage Broker Kevin Martini to provide a glimpse of what is likely to impact Raleigh mortgage rates this week.  

The top 2 items likely to impact Raleigh mortgage rates this week

INFLATION REPORTS ON TUESDAY AND WEDNESDAY

Raleigh mortgage rates may be volatile this week as the market reacts to the August inflation numbers. The CPI consumer inflation report is due out Tuesday (9/13/2022) , and the PPI wholesale inflation report is due out Wednesday (9/14/2022). The market is hoping that inflation in the U.S. may have peaked, given the recent decline in energy prices. However, this may not be the case because ongoing supply constraints may cause energy prices to go up again. It will be interesting to see how the market reacts to these inflation reports.

NEWS HEADLINES REGARDING RUSSIA-UKRAINE AND CHINA-U.S.

The Ukrainian military enjoyed some impressive successes against Russia this last weekend, and it seems like this is helping market sentiment in early trading on Monday. Meanwhile, the Biden administration is looking to curb U.S. chip and tool exports to China as part of ongoing trade and geopolitical tensions. The market may react to developments this week regarding both of these international conflicts.

Oh by the way…

It is never too early to start to explore your homeownership options and you are not too late either.  The first part of the homeownership journey is the loan and then after you have the certainty and being armed with price and cost clarity, the second step is to go find your home. The Martini Mortgage Group offers trusted advice with a frictionless digital mortgage process that provides certainty.  To contact Mortgage Strategist with the Martini Mortgage Group simply call: (919) 238-4934.

Things to Consider when Buying a Home

If you are a first-time homebuyer or a repeat homebuyer, there are many things to consider when buying a home.  Certified Mortgage Advisor Kevin Martini and Senior Mortgage Strategist Logan Martini curated the Fall 2022 Martini Buyer Guide to simply explain the current real estate and mortgage markets plus vital information about buying a home and the process of getting a mortgage.  The Fall 2022 edition of the Martini Buyer Guide has a dozen of informative articles that talk about things one needs to know about the current real estate and mortgage markets. 

The Martini Factor is curated by Certified Mortgage Advisor and Raleigh Mortgage Broker Kevin Martini to provide a glimpse of what is likely to impact Raleigh mortgage rates this week.  

The top 2 items likely to impact Raleigh mortgage rates this week

ONGOING SPECULATION REGARDING FED RATE HIKES LATER THIS MONTH

Financial markets in the U.S. reopened Tuesday after a long holiday weekend, with mortgage bonds kicking off the week sharply lower in negative territory. Bond investors preparing for ongoing aggressive rate hikes at the Federal Reserve monetary policy meeting later this month. The jobs report came out relatively strong last week, showing continued strength in the economy. This paves the way for more Fed rate hikes.

RENEWED INFLATION FEARS DUE TO RISING ENERGY PRICES

It became apparent over the weekend that energy prices are likely to remain elevated due to supply constraints. Specifically, Russia’s biggest natural gas pipeline to Europe will not resume pumping as expected. This means Europe is facing its worst gas supply crisis ever. There is even talk of rationing as the winter months approach. This is sparking renewed fears about rising inflation and an economic slowdown.

Oh by the way…

It is never too early to start to explore your homeownership options and you are not too late either.  The first part of the homeownership journey is the loan and then after you have the certainty and being armed with price and cost clarity, the second step is to go find your home. The Martini Mortgage Group offers trusted advice with a frictionless digital mortgage process that provides certainty.  To contact Mortgage Strategist with the Martini Mortgage Group simply call: (919) 238-4934.