California Mortgage News

Crazy week in the mortgage markets. Up and down, but mostly up.

Lots of volatility due to other forces such as the ongoing situation in the Ukraine which has been a contributing factor to the rising interest rates. There was also a stronger labor report than what was expected which had a worsening effect on rates as well.

Although initial forecast suggested 140K new jobs would be added in February the economy actually added 175k. However, unemployment rates rose 1/10% as a result of an increasing workforce entering the job market. As a result of the inflationary pressures, mortgage pricing worsened.

Some investors are showing signs in the financial markets of moving to relatively safer assets as a result of the escalating conflict overseas. There's been less stock activity and more action on bonds including mortgage backed securities. However, depending on the powers that be this could change in an instant and back to more stock action than bond.

More reports are expected next week and among the highly anticipated is the retail sales which is 70% of our economy. Changes to the situation in Ukraine will also have some bearing on next week's market activity.